Statutory Rules & Government Orders

PRC Option Date Fixation Strategy: How to Avoid Increment Loss

A step-by-step strategy guide for Telangana government employees and teachers on exercising their statutory Option Date under Fundamental Rule 22(a)(i) and Rules 5 & 6 of Revised Pay Scales notifications.

Official Statutory Source References:
  • Fundamental Rule 22(a)(i) & FR 22-B — Statutory Service Rules on Pay Fixation.
  • G.O.Ms.No. 51, Finance (HRM.IV) Department, dated 11-06-2021, Rules 5 & 6 — "Exercise of Option and Fixation of Pay in Revised Pay Scales".

Statutory Rules on Exercising the Option

Under Rule 5 of G.O.Ms.No. 51, every government employee holding a post on the effective date of pay revision has the statutory right to opt to remain in the existing scale of pay until the date on which they earn their next increment in the existing scale, or until they vacate the post.

Key Statutory Conditions:

  • 6-Month Window: The option must be exercised in writing within a period of six (6) months from the date of publication of the G.O. in the Telangana Gazette.
  • Finality: Under Rule 5(2), the option once exercised is final and cannot be revoked under any circumstances.
  • Deemed Fixation: If an employee fails to submit an option form within the stipulated 6 months, they are deemed to have opted for the revised scale from the standard effective date.

The Two Strategic Paths

Option 1: Fixation from Effective Date

Opt to switch to the revised master scale right from the standard effective date (e.g., 01-07-2018 under RPS 2020 or 01-07-2023 under 2nd PRC). All subsequent increments are drawn in the higher revised scale.

Option 2: Fixation from Annual Increment Date

Draw the impending annual increment in the old scale first. Once that increment raises your existing basic pay, apply the pay revision formula on that higher base.

Numerical Demonstration: Avoiding Increment Loss

The following arithmetic demonstration illustrates why an employee whose increment falls close to the effective date often benefits from Option 2:

Case Study: Senior Assistant (Annual Increment on 1st October)

Existing Basic Pay on 01-07-2023: ₹36,880 (Next increment of ₹1,240 on 01-10-2023). Formula: 33.67% merged DA + 25% Fitment.

Fixation ParameterOption 1 (From 01-07-2023)Option 2 (From 01-10-2023)
Basic Pay used for PRC₹36,880₹38,120 (after old increment)
Merged DA (33.67%)₹12,417₹12,835
Fitment (25%)₹9,220₹9,530
Raw Total₹58,517₹60,485
New Basic Pay (Ceiled to ₹100)₹58,600₹60,500 (+₹1,900 higher stage)
Result: By choosing Option 2, the employee secures a higher fixation stage (₹60,500 vs ₹58,600), compounding higher earnings over subsequent years until retirement.

Stepping Up of Pay (Senior-Junior Anomaly)

Under Note 2 under Rule 6 of G.O.Ms.No. 51, if a junior employee draws more pay in the revised scale than their senior colleague in the same cadre solely because the junior exercised a different Option Date, the senior employee's pay is stepped up to equal that of the junior, subject to four strict conditions:

1. Both the senior and junior belong to the same cadre and the post in which they have been promoted is identical.

2. The pre-revised and revised scales of pay of the lower and higher posts are identical.

3. The senior was drawing equal or higher pay than the junior in the pre-revised scale.

4. The anomaly arose directly as a result of the application of the Revised Pay Scales rules.

Statutory Authority & Disclaimer

The Option procedure is governed strictly by Rules 5 and 6 of G.O.Ms.No. 51, Finance (HRM.IV) Department, dated 11-06-2021 read with Fundamental Rule 22(a)(i). The numerical simulation above uses standard PRC methodology. Actual options for future revisions must be executed on the formal Annexure Form notified by the Finance Department upon issue of the respective G.O.

Simulate Both Old and New Basic Pays Now

Enter your current basic pay and projected post-increment basic pay in our calculator to compare gross payouts.

Calculate Now