Pension News: Good news! These retired employees will get the benefit of increment, pension amount will increase!

Employees who retire on 30 June or 31 December are just one day away from the salary hike they get on 1 July or 1 January. This will not harm the employees who retire a day earlier in June or December.

7th Pay Commission: There is good news for central employees and pensioners. After the increase in dearness allowance, the central government has taken another important decision in the interest of employees and pensioners. Under this, any central government employee who retires on 30 June or 31 December will get the benefit of Notional Increment Policy. This will increase his pension.

Actually, the central government has changed the pension rules and decided to give notional increment to the employees retiring on 30 June or 31 December. With this decision, the employees retiring before the increase in dearness allowance will be given the benefit of increment by adding it to their pension. The Department of Personnel and Training (DoPT) has issued an office memorandum on May 20, 2025, clarifying that now this benefit will be available to all eligible central employees, provided they have completed the service properly.

Employees retiring on 30 June or 31 December will get this benefit

As per the order of the Department of Personnel and Training (DOPT), the central government increases the dearness allowance (DA) for employees every year in January and July, although it is announced much later in March and October/November respectively, so now employees retiring a day before the annual salary increment will get a notional salary hike for the calculation of their pension benefits.

Employees who retire on 30 June or 31 December i.e. they are only one day away from the salary hike on 1 July or 1 January. This will not harm the employees retiring a day before in June December just because they retire a day before the official annual salary hike. Because this salary hike will be considered valid for the calculation of pension and it will not have any effect on gratuity or other retirement benefits.

What was the rule earlier

Before the year 2006, the date of salary increment for every employee was different, but from January 1, 2006, it was fixed and salary increment started being given on July 1 every year. After this, in the year 2016, two dates were fixed for increment, January 1 and July 1, but those who retired a day before the fixed date were deprived of this benefit.

The Madras High Court gave a decision in favor of the employee in a case in the year 2017 and DoPT implemented it. The Supreme Court also made it clear in the year 2023 and then in 2024 that if an employee has worked honestly throughout the year, then he is entitled to a salary hike even on the last day.

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