Court Rules Payment of 70%, 80%, 90% Salary in Probation Period Discriminatory and Violative of Natural Justice Principles
In a landmark judgment delivered on September 8, 2026, the Madhya Pradesh High Court (Division Bench, Jabalpur) decisively struck down state government rules and circulars that mandated payment of reduced salary during the probation period for Class-III and Class-IV government employees. The court held that paying 70%, 80%, and 90% of the minimum pay scale during the first, second, and third years of probation respectively, was discriminatory, unjustified, and contrary to the principles of natural justice.
The writ petitions, including W.P No. 14411 of 2020 and other connected petitions, challenged notifications and circulars issued by the Madhya Pradesh government, notably the General Administration Department circular dated December 12, 2019, and amendments to the Fundamental Rules notified in February 2020. These prescribed a three-year probation period with reduced salary slabs for new recruits. The government had justified this policy as part of probationary evaluation and confirmation procedures.
The Court, presided over by Mr. Vivek Rusia, Additional Chief Justice, and Justice Pradeep Mittal, thoroughly examined the legality and fairness of these provisions. It noted that the employees on probation perform their duties fully and are appointed after rigorous selection processes, including competitive exams by MPPSC or Employee Selection Board. Despite this, the reduced stipend structure was only imposed on Class-III and IV employees, while Class-I and II officers received full pay during probation. The Court found no valid rationale for this discriminatory treatment.
Importantly, the Court emphasized that salary payment during probation must align with the pay scale prescribed in the recruitment rules. It held that deduction or recovery from salary without valid justification is impermissible under the Constitution of India, specifically Articles 12 and 14, which ensure equality before law and protection against arbitrary state action. The judgment underscored that even as a form of punishment, pay scale reduction below the minimum prescribed is not allowed.
In previous related judgments, including "State of Madhya Pradesh vs. Dilliraj Bhilala" (2025) and "Indore Municipal Corporation vs. Vinita Tiwari" (2025), the same principle was upheld, invalidating similar government circulars that allowed reduced pay. The present judgment reinforced these precedents and clarified that all employees appointed after the impugned circular dated November 25, 2019, should be paid 100% of their salary during the probation period.
The Court directed the state government to reimburse any amounts previously deducted from employees' salaries during their probation and to pay arrears for the shortfall. It further struck down all amendments to service rules and circulars prescribing reduced pay during probation as unconstitutional and violative of natural justice.
This ruling is expected to have far-reaching implications for government service conditions in Madhya Pradesh, ensuring fair treatment and equal pay for probationary employees across all classes. It reaffirms the judiciary's role in protecting fundamental rights and promoting equitable service laws.
Bottom Line:
Payment of reduced salary during the probation period is discriminatory and violates the principles of natural justice. Probationary employees are entitled to 100% salary for the work performed during the probation period.
Statutory provision(s):
Madhya Pradesh Civil Services (General Conditions of Service) Rules, 1961 Rule 8(1), Fundamental Rule 22C, Constitution of India Articles 12, 14
