New Delhi:
Central Government employees receiving a promotion or MACP in 2026 face a critical financial decision: Choosing between “Option 1” (Fixation from Date of Promotion) and “Option 2” (Fixation from Date of Next Increment). A wrong choice can result in a permanent loss of one increment for the rest of your service.
Updated on: 16 January 2026 | Verified against FR 22(I)(a)(1) & DoPT Guidelines.
Pay Fixation on Promotion Rules 2026: Option 1 vs Option 2 Calculator
Quick Answer
When promoted, you get a salary hike (one increment + movement to higher Level). You have 30 Days to choose how this is applied:
• Option 1: Pay is fixed immediately on the day you join the new post.
• Option 2: Pay is fixed later, on the date of your Next Annual Increment (Jan 1 or July 1).
• Verdict: Option 2 is usually beneficial as it often results in a higher Basic Pay.
Who Is Eligible
- Employees getting Regular Promotion to a higher post carrying higher duties.
- Employees granted financial upgradation under MACP.
- Exception: Ad-hoc promotions do not qualify for this option.
Risk: The 30-Day Deadline
You will LOSE the benefit of Option 2 if:
1. You fail to submit the “Option Form” within one month of the promotion order.
2. If no option is submitted, the office automatically applies Option 1 (Immediate Fixation), which often results in a lower salary.
3. Once an option is exercised, it is FINAL and cannot be changed later.
Option 1 vs Option 2 (Comparison)
Let’s assume you are in Level 7 (Basic ₹49,000) and promoted to Level 8. Your DNI is July 1.
| Feature | Option 1 (Straight Fixation) | Option 2 (Deferred Fixation) |
|---|---|---|
| Fixation Date | Date of Joining new post. | Date of Next Increment (DNI). |
| Increments | You get 1 Promotional Increment immediately. | You get 2 Increments together on DNI (1 Annual + 1 Promotional). |
| DNI Change | Your DNI may shift (e.g., from July to Jan) based on 6-month service rule. | Your DNI usually remains unchanged. |
| Result | Good if DNI is far away. | Best if DNI is close. |
🧮 CALCULATE YOUR GAIN:
Don’t guess. Use the calculator to see exact Basic Pay difference between Option 1 & 2.
How DNI Shifts (Date of Next Increment)
Under 7th CPC, DNI is either 1st Jan or 1st July.
• If you choose Option 1 and join in August, you complete 6 months only in Feb. So your DNI shifts to next July.
• If you choose Option 2, your pay is re-fixed on your existing DNI, keeping the cycle intact.
Frequently Asked Questions
Is Option 2 available for MACP?
Yes. The option to defer pay fixation (FR 22(I)(a)(1)) is fully available for MACP upgradations just like regular promotions.
What if I am promoted on the date of my increment (e.g., July 1)?
If your promotion date coincides with your DNI, you don’t need to choose. You automatically get the benefit of both the Annual Increment and Promotional Increment on the same day.
🇮🇳 हिंदी में सारांश (Summary in Hindi)
पे फिक्सेशन (Option 1 vs Option 2) नियम
1. विकल्प: प्रमोशन मिलने पर आपके पास दो रास्ते हैं। या तो ‘आज’ वेतन बढ़वाएं (Option 1) या ‘अगले इंक्रीमेंट’ की तारीख पर (Option 2)।
2. फायदा: ज्यादातर मामलों में Option 2 बेहतर होता है क्योंकि इसमें आपको एक साथ दो इंक्रीमेंट का लाभ मिलता है, जिससे बेसिक पे ज्यादा सेट होती है।
3. सावधानी: प्रमोशन आर्डर मिलने के 30 दिन के अंदर फॉर्म भरकर देना अनिवार्य है। अगर फॉर्म नहीं दिया, तो नुकसान वाला ऑप्शन अपने आप लागू हो जाएगा।