The government has said it won't raise salaries of government officers who don't perform.
Central government employee unions have opposed the government's decision to penalise non-performers and award promotions and salary increments to only those who score a "very good" in appraisals.
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There will be no raise or promotion for non-performers, the government has decided, accepting a recommendation of the seventh pay commission.
The benchmark for performance appraisal for promotion and financial upgradation has been enhanced to "very good" from "good", the finance ministry said in its order notifying the implementation of the Pay Commission's recommendations.
The commission has, in its report to the Centre, said there is a widespread perception that increments as well as promotions happen as a matter of course in government jobs where a Modified Assured Career Progression or MACP scheme is applied.
"The perception is that grant of MACP, although subject to the employee attaining the laid-down threshold of performance, is taken for granted. This Commission believes that employees who do not meet the laid-down performance criterion should not be allowed to earn future annual increments," the panel has said.
The government has accepted the commission's proposal that annual increments be withheld for employees who are unable to meet the benchmark "either for MACP or a regular promotion within the first 20 years of their service."
This, the panel suggested, will act as a deterrent for complacent and inefficient employees.
Under the MACP scheme an employee is moved to the next higher grade on completion of 10, 20 and 30 years of service if he has not received a raise in the intervening years.
Employee unions have fought back protesting that the new rules for performance appraisal are too tough.
It is wrong of the government to accept these recommendations. We will oppose this. We will present our opposition to the government," said Gopal Mishra, general secretary of the All India Railway Men's Federation.
There are about 50 lakh Central government employees.
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