In a landmark confirmation that brings clarity to thousands of former Central Government employees, the Union Government has officially validated the issuance of orders regarding notional increments for pensionary benefits. This development marks the culmination of a protracted legal and administrative struggle for retirees who stepped down just hours before their scheduled annual increments.
The formal acknowledgement was provided in the Rajya Sabha on 3rd April 2025, in response to Unstarred Question No. 3798 raised by Shri Nagendra Ray.
Understanding the “One-Day” Dilemma
For decades, Central Government employees faced a technical glitch in service rules. Increments are typically granted on 1st July or 1st January. Employees who completed a full year of service but retired on 30th June or 31st December were denied the increment because they were not “in service” on the day the increment officially went into effect.
This omission had a compounding negative effect, as the final basic pay determines:
- Monthly Pension amount
- Commutation of Pension
- Retirement Gratuity
- Leave Encashment
The Legal Catalyst: Supreme Court Intervention
The shift in government policy was not spontaneous but driven by judicial mandates. While various High Courts had ruled in favor of retirees, the definitive turning point was the Hon’ble Supreme Court’s interim order dated 6th September 2024 (in M.A. Dy. No. 2400/2024).
Prompted by this judicial direction, the Department of Personnel and Training (DoPT), in consultation with the Department of Expenditure and the Department of Legal Affairs, issued Office Memorandum No. 19/116/2024-Pers.Pol. (Pay)(Pt) on 14th October 2024.1
Key Implementation Details & The “Cut-off” Logic
The Rajya Sabha reply meticulously detailed how the increment will be applied, specifically highlighting the financial boundaries of the order.
| Feature | Regulation Detail |
| Effective Date | Pension revisions are effective from 1st May 2023. |
| Arrears Policy | Generally, no enhanced pension or arrears will be paid for any period prior to 30th April 2023. |
| Litigant Exception | Retirees who had previously filed a Writ Petition or impleadment application and received favorable court orders will receive the benefit from the month of their application filing. |
| Nature of Increment2 | The increment is “notional”—meaning it is added to the last pay for the purpose of calculating retirement benefits only, not for back-pay of active salary.3 |
Eligibility Matrix: Who Benefits?
✅ Covered Category
- June 30 / Dec 31 Retirees: Those who completed one full year of service ending on these dates and retired.
- Active Litigants: Those who took the legal route before May 2023 and have specific court mandates in their favor.
- Post-May 2023 Retirees: All eligible employees retiring after this date will automatically see this reflected in their pension processing.
❌ Not Covered Category
- Pre-2023 Non-Litigants: Retirees who retired years ago but never filed a legal claim may not be eligible for retrospective arrears before May 2023.
- Arrears Claims: Anyone seeking “back-pay” or enhanced pension for periods prior to 1st May 2023 (unless protected by a specific court order).
The Path Forward for Retirees
This confirmation in the Rajya Sabha reinforces the government’s commitment to implementing the DoPT’s October 2024 instructions. Retirees who fall into the eligible brackets should ensure their Pension Disbursing Authorities (PDAs) and respective PAOs (Pay and Accounts Offices) are processing the revised Pension Payment Orders (PPOs).
For those who retired on June 30 or December 31 prior to 2023 and have not yet filed for a revision, this Rajya Sabha confirmation serves as a vital supporting document for administrative representations.
