Supreme Court Order on Notional Increment for Central government Pensioners

Overview

On October 14, 2024, the Department of Personnel & Training (DOPT) issued a significant Office Memorandum (O.M) in response to the Supreme Court’s order regarding the grant of notional increments for pension calculation. This development is crucial for Central Government employees who retired on June 30th or December 31st and is guided by the Central Civil Services (Revised Pay) Rules, 2006 and 2016.

Key Details

• Subject: Grant of notional increment on 1st July/1st January for employees retired on 30th June/31st December for pensionary benefits calculation.
• Rule References: Rule 10 of the Central Civil Services (Revised Pay) Rules, 2006 and 2016.

Court Rulings and Decisions

The memorandum stems from various court decisions:

1. Madras High Court (15.09.2017): Granted notional increment to retirees for pension calculation.
2. Supreme Court (11.04.2023): Upheld High Court’s decision, granting one annual increment to retirees on their last service day for pension benefits calculation.
3. Supreme Court (19.05.2023): Dismissed appeals against previous rulings, reinforcing the decision.

Recent Supreme Court Directions

On September 6, 2024, the Supreme Court issued an interim order to prevent further litigation:

• Applicability: The judgment applies to third parties from May 1, 2023. Enhanced pension for the period before April 30, 2023, will not be paid.
• Res Judicata: For those who have filed and won writ petitions, enhanced pension by taking one increment will be paid.
• Pending Appeals: The direction does not apply where appeals are pending.
• Intervention/Impleadment: Enhanced pension payable from the month of application filing.

Implementation

The Department advises strict adherence to the Supreme Court’s directives. The notional increment will be considered solely for pension calculation, not for other pensionary benefits.

Conclusion

This memorandum ensures the rightful pensionary benefits for Central Government employees as per the Supreme Court’s orders. The implementation of these directives is a step towards uniformity and fairness in pension calculations.