New Delhi: In a landmark relief for Central Government pensioners, the Department of Personnel & Training (DoPT) has operationalized the Supreme Court’s final judgment regarding the grant of Notional Increment. Employees retiring on 30th June or 31st December—who previously missed their annual increment by a single day—are now officially entitled to add this increment for the purpose of pension calculation.
THE FINAL RULE: If you have completed one full year of service with “Satisfactory” behavior and retired on the last day of June or December, you will be granted the increment notionally due on 1st July or 1st January. This hike increases your Basic Pension and Gratuity permanently.
1. Who is Eligible? (The Checklist)
| Retirement Date | Increment Date (Notional) | Benefit Type |
|---|---|---|
| 30th June | 1st July | Pension Re-fixation |
| 31st December | 1st January | Pension Re-fixation |
| Eligibility Criteria | – | 1 Year Qualifying Service |
| Monetary Arrears | – | From May 1, 2023* |
2. Financial Impact Calculation
Let’s verify how much a retiree gains from this “One Notional Increment.”
- Retiring Basic Pay: ₹60,400 (Level-7) on 30th June.
- Old Pension: ₹30,200 (50% of Basic).
- With Notional Increment: Basic becomes ₹62,200 (Next Cell).
- New Pension: ₹31,100.
- Monthly Gain: ₹900 + DA (approx ₹1400 total).
- Lifetime Gain: ₹1400 x 12 x 20 years = ₹3.36 Lakhs approx.
3. How to Claim? (Implementation Process)
Most Ministries (Railways, Defence, Posts) have started suo-moto revision. However, if your PPO has not been revised yet:
- Submit a representation to your Head of Office (HOO) citing the DoPT OM dated 20.05.2025.
- Attach a copy of the Supreme Court Judgment (Feb 20, 2025).
- Request a “Corrigendum PPO” from the CPAO.
4. Conclusion
This rule is now “Law of the Land.” All future retirees in 2026 falling on these dates need not go to court; the benefit is automatic. Check your PPO carefully before signing.
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