New Delhi: Administrative orders for MACP (Modified Assured Career Progression) and Functional Promotions are usually issued in the first quarter of the year. Upon receiving the order, every employee is required to submit an “Option Form” under FR 22(I)(a)(1). A common error observed is that employees blindly select “Option 1” (Fixation from Date of Promotion) to get an immediate hike, unknowingly sacrificing their Annual Increment for the next 12-18 months. This guide mathematically proves why “Option 2” is often superior.

The Golden Rule: The goal is to align your Date of Next Increment (DNI) such that you get two increments (Annual + Promotional) within the shortest gap.

1. Option 1 vs Option 2: The Calculator

Let’s analyze a typical case of a Level 4 Employee (Basic ₹31,400) granted MACP to Level 5 on February 10, 2026.

The Verdict: By waiting 4 months (Option 2), the employee jumps to a higher cell (₹33,900) in July. In Option 1, they get stuck at a lower cell (₹32,900) for a full year.

2. The “6-Month Rule” Explained

The 7th Pay Commission introduced a critical rule regarding the Date of Next Increment (DNI).

• Rule: You need 6 months of qualifying service in a level to earn an increment.
• The Trap: If you fix your pay on Feb 10 (Option 1), your service on July 1 is only 4 months and 20 days. You are NOT eligible for the July increment. Your next increment shifts to January of next year.
• The Solution: By choosing Option 2, you take your Annual Increment on July 1 (Level 4) first, then get promoted to Level 5 on the same day. This double jump places you in a higher index.

3. Procedural Requirement: Option Form

You must submit the Option Form within one month. If you fail to submit it, the DDO will automatically default to Option 1, which is usually the loss-making option for promotions between Jan-June.