STAGNATION INCREMENTS
AYYAPPAN N R
(Querist) 17 February 2011
This query is : Resolved
PLEASE INFORM WHETHER STAGNATION INCREMENTS ARE PART OF BASIC PAY OR IT IS ONLY AN ALLOWANCE GIVEN TO AN EMPLOYEE AS AN INCENTIVE ? IS IT CORRECT, IF THE STAGNATION INCREMENTS ARE DETACHED FROM THE BASIC PAY & SHOWN SEPARATELY AS STAGNATION ALLOWANCE ?
Parthasarathi Loganathan
(Expert) 17 February 2011
Stagnation increments are never part of Basic Pay. This concept was emanated only to isolate this emoluments from the purview of Basic Pay.
Kirti Kar Tripathi
(Expert) 17 February 2011
I agree with Parth. It is not Basic Pay. Nor it incentive. This is the emolument, which outside the purview of Basic pay but form part of "pay"
Guest
(Expert) 18 February 2011
STAGNATION INCREMENT IS DEFINITELY A PART OF BASIC PAY
Stagnation increments are necessarily a part of the basic pay and not as an allowance, as stagnation increments count for all purposes, such as DA, HRA, CCA, Pensionary benefits, etc., including fixation of pay on promotion, vide Government of India, Ministry of Finance (Department of Expenditure), Office Memorandum No. 1(9)E.III-A/97, dated 22nd July, 1998.
Had stagnation increment been only an allowance, it would not have been allowed to count for any of the above purposes.
PS Dhingra
Chief Executive Officer
Dhingra Group of Management & Vigilance Consultants
New Delhi-110089
Mobile: 09968076381
[dcgroup1962@gmail.com]
Kirti Kar Tripathi
(Expert) 18 February 2011
i disagree with Mr. Dhingra. The government rules have specifically separate stagnation increments from basic pay. However, it is included in pay but it does not form the part of Basic Pay.
R.Ramachandran
(Expert) 18 February 2011
I think there is a lot of hair splitting in this case.
In a time-scale once a person reaches the maximum of the scale and stagnates, then as per the prescribed rules, stagnation increment is being granted. Any increment whether normal or stagnation as the case may be, will definitely form part of the 'basic pay'. It is definitely not an allowance. Any allowance like DA, HRA etc.,which is granted as a % of the basic pay will always be calculated on the basic pay which will include the amount of stagnation increment.
Further more, when the official concerned when promoted to a higher post will get his pay fixed in the new post with reference to his basic pay (which will include his stagnation increment also).
Thus, Mr. Dhingra is absolutely right when he says that 'stagnation increment' will form part of the basic pay. Any other view is contrary to the extant rules and provisions.
Kirti Kar Tripathi
(Expert) 18 February 2011
The concept of Stagnation increments is arrived due to Bipartite Settlement in banking sector the 9th Bipartite Settlement P describe pay as below
Definition of Pay :
Pay for the purpose of DA, HRA and superannuation benefits shall mean Basic Pay, Stagnation Increment, Special Pay, Graduation Pay, Professional Qualification Pay and Officiating Pay, if any.
In this definition the terminological "Stagnation Increment" is shown as separate from basic pay as such Stagnation Increment can not be termed as Basis Pay.
Ajay Bansal
(Expert) 19 February 2011
Disputed judgements of S.C. are delivered on this issue.
