FR 22 Pay Fixation 2026: Option 1 vs Option 2 (Which Gives Higher Salary?)

Pay Fixation on Promotion 2026: The FR 22(I)(a)(1) Mandate

Under Fundamental Rule 22(I)(a)(1), Central Government employees appointed or promoted to a higher post carrying duties of greater importance are entitled to one notional increment in their current pay level before their salary is fixed in the new promotional cell. As of February 2026, the Department of Personnel and Training enforces a strict one-month timeline for submitting the fixation option.

This article relies on the consolidated pay fixation instructions issued by the DoPT. In practice, Drawing and Disbursing Officers (DDOs) routinely default to Option 1 if an employee fails to submit the written option form within the mandatory 30-day window, which frequently results in permanent financial loss that audit teams refuse to retroactively correct.

What are the two pay fixation options available upon promotion?

Employees can choose to have their pay fixed immediately from the date of promotion (Option 1) or defer the fixation to their Date of Next Increment (DNI) in the lower post (Option 2). Selecting Option 2 allows the employee to draw the existing pay until the DNI, at which point two increments (one regular, one promotional) are applied before matching the figure in the higher level.

Option 1 vs Option 2: Financial Impact and Calculation

The financial trajectory of an employee completely alters based on the chosen option. The table below demonstrates the calculation for an employee in Level 6 (Basic Rs 44,900) promoted to Level 7 on March 1, 2026, whose regular Date of Next Increment is July 1.

Why does Option 2 yield a higher final basic pay?

Option 2 yields a higher basic because the employee secures their earned annual increment in the lower level before the promotional increment is added. Although the employee accepts a temporarily lower payout for the months leading up to the DNI, the permanent jump to a higher cell in the pay matrix generates a compounding annual gain throughout their career.

Stepping Up of Pay and Statutory Exclusions

The DoPT framework provides a remedy known as “Stepping up of Pay” to resolve anomalies where a senior employee draws a lower basic salary than a junior employee promoted later. However, specific administrative scenarios are strictly excluded from pay protection benefits.

How is pay fixed upon voluntary transfer to a lower post?

Under Fundamental Rule 15(a), if an employee requests a transfer to a lower post on their own volition, their pay is restricted to the maximum of the time scale of the lower post. No promotional increment is granted, and the employee immediately forfeits the financial benefits of their previous higher level.

How To Submit Your Pay Fixation Option In 2026

1. Assess the promotion date against your regular Date of Next Increment (January 1 or July 1).
2. Calculate the final cell placement in the new pay level under both Option 1 and Option 2.
3. Obtain the standard pay fixation option form from your administrative or accounts section.
4. Mark the selected option clearly, sign, and date the document.
5. Submit the physical or e-Office routed form to the DDO within exactly one month from the date of assuming charge of the higher post.

What happens if the option form is not submitted in time?

If the employee fails to submit the option within the strict one-month timeframe, the accounts section automatically executes the fixation under Option 1 (from the date of promotion). The rules prohibit any subsequent revision or re-exercise of the option once the deadline expires.

Frequently Asked Questions