The Department of Posts has issued an important clarification regarding financial upgradation under the MACP Scheme for officials promoted to the post of Postal Assistant through the Limited Departmental Competitive Examination (LDCE). This circular is very relevant for MTS, Postman, and Postal Assistant employees who are tracking MACP and promotion related matters in 2026.
Here is a simple breakdown of what this circular says.
What Is This Circular About?
This letter was issued in connection with an Original Application (OA No. 288/2026) filed by an official before the Central Administrative Tribunal, Principal Bench, New Delhi. The applicant sought financial upgradation under the MACP Scheme by claiming that his appointment to the post of Postal Assistant through LDCE should be treated as a direct entry grade.
The Department has examined the matter and clearly rejected this claim, explaining its stand in detail.
Background of the Case
Here is what happened in this specific case:
- The applicant was initially appointed as Group ‘D’ (now MTS).
- He was later promoted to the post of Postal Assistant through LDCE.
- He received financial upgradation under the TBOP Scheme, which was adjusted against the 1st and 2nd financial upgradations under MACP.
- His qualifying service was reckoned from his direct entry grade of MTS.
- He was later granted the 3rd financial upgradation under MACP.
- In total, he has already availed three financial upgradations from his entry grade, as allowed under the MACP Scheme.
- Since three upgradations have already been given, he is not entitled to any further upgradation.
Why LDCE Promotion Is Not the Same as Direct Recruitment
The Department has given clear reasoning on why appointment through LDCE cannot be treated as direct entry:
- As per the Recruitment Rules of Postal/Sorting Assistant cadre, 1971, the mode of recruitment is 50% by promotion and 50% by Direct Recruitment.
- The applicant appeared for LDCE based on eligibility conditions prescribed for MTS Cadre officials (Lower Grade Officials), and this was against vacancies meant for the 50% departmental promotion quota, not the Direct Recruitment quota.
- Therefore, there is no reason to treat his entry into Postal Assistant post as direct recruitment.
Why MACP Financial Upgradation Rules Matter Here
The circular explains the core purpose and limits of the MACP Scheme:
- MACP is envisaged as a “Safety Net” for employees facing genuine stagnation due to lack of promotional avenues.
- There are three financial upgradations under MACP, counted from the direct entry grade, on completion of 10, 20, and 30 years of service.
- Upgradation is admissible whenever a person completes 10 years continuously in the same grade pay or pay level.
- Promotion to Postal Assistant is already counted for financial upgradation under MACP, since such officials also receive pay fixation benefit in higher Grade Pay under Fundamental Rule 22(I)(a)(1) at the time of promotion.
- If financial upgradation is granted by ignoring the promotion, or by treating the promotion at par with direct recruitment, it would result in more than three financial upgradations, which is not permitted under the Scheme and would create huge recurring financial implications on the Government exchequer.
Department’s Consistent Legal Stand
The Department has reiterated its consistent position:
- Appointment through LDCE against the promotional quota constitutes a promotion, not direct recruitment.
- This is supported by the applicable Recruitment Rules and clarifications received from the nodal Department, DoPT.
- Age and educational qualification prescribed for direct recruits do not apply in case of promotion, and since the applicant was not recruited against the post earmarked for direct recruitment, he cannot be treated on par with direct recruitment.
- LDCE is an internal policy tool for fast-track promotion of departmental candidates as per the respective Recruitment Rules.
- Treating LDCE promotion at par with Direct Recruitment would open the floodgates for similar requests and would be a gross violation of statutory Recruitment Rules framed under Article 309 of the Constitution of India, affecting not just the Department of Posts but the entire Central Government.
Supporting Legal Precedents Cited
The Department has referred to two important judgments to support its stand:
- Madras High Court, judgment dated 06.06.2022, in a batch of Writ Petitions, held that writ petitioners who availed promotion to the post of Postal Assistant from the lower post of Postman and Group ‘D’ are not entitled to grant of financial upgradation under MACPS on the basis of treating it as direct recruitment.
- Patna High Court, judgment dated 11.09.2024, in Civil Writ Jurisdiction Case No. 14510 of 2021, held that appointment through LDCE constitutes a promotion, since the official had participated in the promotional examination process and was declared successful.
The circular also notes that although the Hon’ble Supreme Court, vide its order dated 24.02.2026, dismissed the Department’s Special Leave Petitions in similar matters, it expressly kept the question of law open. This means the Department’s policy continues to hold the field, and similar cases will be contested on merits based on these precedents.
Why This Matters for Postal Employees
This clarification is significant for MTS, Postman, and Postal Assistant employees who may have similar claims pending or are considering filing OAs on MACP financial upgradation. It confirms the Department’s official and consistent legal position: promotion through LDCE will continue to be treated as promotion, not direct recruitment, for the purpose of MACP calculations.
Reference Details
- Letter No: 2-29/2026-PCC
- Issued by: Department of Posts, Dak Bhawan, New Delhi
- Dated: 01-07-2026
- Addressed to: Chief Postmaster General, Delhi Circle
- Signed by: Prahalad Ray Meel, Assistant Director (PCC)
- Copy marked to: All Heads of Circles (except Delhi Circle)
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Disclaimer: This blog is based on the official Department of Posts letter dated 01-07-2026 (Reference: 2-29/2026-PCC). Please refer to the original circular for the most accurate and updated information before relying on it for any personal claim.