Dopt Orders on Notional Increment for Central Govt Employees and Pensioners
The Department of Personnel and Training (DoPT) has issued orders regarding the Notional Increment for Central Government Employees and Pensioners. The Notional Increment is a measure to calculate the additional salary an employee would have earned if they were to have received a regular increment on the day immediately preceding their retirement. This order is a significant step towards ensuring that the pensions of government employees and pensioners are in line with the current market trends and that they receive the due benefits for their service.
Latest News Who Retired 30 June Add One Increment
The DoPT order dated 22nd November 2022 regarding the grant of notional increment to the employees who retired on 30th June after completing one year of service. The Office Memorandum is signed by the Under Secretary to the Government of India explained the status of the grant of notional increment on 1st July or 1st January to the Central Government employees having their date of increment on 30th June/31st December respectively, the subject matter is under examination, in consultation with the nodal Ministries/Departments concerned.
Notional increment to pensioners retiring on 30 June and 1 July Birth date Orders by DoPT
The Department of Personnel and Training (DoPT) has issued a clarification order dated 22nd November 2022 regarding the notional increment to pensioners retiring on 30 June and 1 July based on their birth date. This clarifies the issue of granting notional increment to employees on 30th June after completing one year of service and may lead to its resolution in the near future. However, if the Central Government releases a one-increment order, it may be difficult to calculate arrears for the beneficiaries.
How to calculate one increment arrears for 30th June retirees?
In order to calculate one increment arrears for retirees on 30th June, it is necessary to consider the recent Judgement issued by the Hon’ble Delhi CAT Court on 15.7.2021. The Court ruled that for employees who retired on 30th June of any year, the increment that would have been payable on 1st July should be extended. Additionally, their pensions should be revised, subject to meeting applicable conditions. Any resulting arrears should be paid without interest. Similarly, for employees who retired on 31st December of a given year, the increment payable on 1st January of the following year should be extended, and their pensions revised subject to the same conditions. It is important to note that a clause must be included in the extension of these benefits stating that if the Hon’ble Supreme Court takes a different view in the Civil Appeal arising from SLP No. 4722/2021, the employees will be obligated to refund the entire benefit without question.
What is a Notional Increment?
A Notional Increment refers to a hypothetical increase in salary for an employee. In general, an employee is eligible for an annual increment after completing one year of service, but the employee must also be present at work on the following day in order to receive it. You can learn more about increments by clicking the provided link – Click to read about Increment
Why is Annual Increment denied to employees retiring in June?
It is often questioned why employees who retire in June are not eligible for their annual increment. Prior to January 1st, 2006, the implementation date of an employee’s annual increment was based on their date of appointment or promotion. However, after the 6th CPC, it was determined that July 1st would be the uniform date for annual increment implementation for all Central Government employees. This means that individuals who are appointed after January 1st do not qualify for the annual increment on July 1st of that same year but rather the following year. For further information, please refer to the provided link – Click to reading continue
Counting of Specific Period for Increment
When an individual has been designated for a permanent position, but is required to undergo training before assuming the responsibilities of the role, any training period completed by the employee – whether paid or unpaid – can be considered as a duty period for the purposes of calculating increments.
Dopt Orders on Increment issue
- One Notional Increment to those retired on 30 June after completion of 365 days
- Notional Increment for Pensionary Benefits – Court Judgement on Annual Increment
- Anomaly in Determining Notional Pay – Revision of Pension of pre-2016 pensioners
- Grant of Notional Increment on completion of 12 Months of Service
- 7th CPC Pension (Notional Pay) Calculator for Pre-2016 Pensioners
- Revision of Pension of Pre-2016 Pensioners – Stagnation Increment
- Increment Issue Retiring on 30th June and 31st December – NFIR
Minister Replied in Parliament on Notional Increment
On August 5th, 2021, the Minister of State for Personnel, Public Grievances and Pensions, Dr. Jitendra Singh, addressed Parliament regarding National Increment for pensioners who retired on June 30th in various years. The Department of Revenue, Respondent No.1, informed that Order dated February 26th, 2021, in the case of O.A. No.330/00146/2020, has been challenged by way of Writ Petition WRIA 7911/2021 before Allahabad High Court. In its Order dated February 26th, 2021, CAT, Allahabad Bench observed that matters relating to pay fixation are governed by a uniform policy of the Government, and any judgment in these matters is always “in rem” and cannot be interpreted as judgment “in personam.”
Courts and CATs have rendered several judgments/orders on the matter of granting notional increments to Central Government servants who retired on June 30th/December 31st. The Supreme Court’s Order dated July 23rd, 2018 and August 8th, 2019, relating to the judgment dated September 15th, 2017, of the High Court of Madras in W.P. No.15732 of 2017 in the case of P. Ayyamperumal was considered “in personal” and not “in rem.” On the other hand, in a similar case and on the same subject matter, the Supreme Court vide judgment dated March 29th, 2019, while dismissing the SLP(C) Dy. No.6468/2019 in the case of UoI vs. Sakha Ram Tripathi, kept the questions of law open.
Furthermore, in the matter of Ministry of Railways, wherein CAT, Bengaluru Bench allowed the grant of notional annual increment to an employee who superannuated from service on June 30th, 2014, the Supreme Court vide order dated April 5th, 2021, in SLP(C) No.4722/2021, stayed the operation of the said Order dated December 18th, 2019.
Grand of Benefit of One Increment Who Had Retired on 30th July
The Lakshadweep Administration has recently released an order outlining the calculation of Gratuity and Cash payment in lieu of leave for Central Government employees who retired between January 2020 and 2021. Additionally, employees who retired on June 30th before receiving their notional increment on July 1st will now be granted this benefit for their pensionary benefits – View Order
Latest Clarification for Notional Increment on 30th June Retirement for Pensionary Benefits
The most recent explanation regarding notional increment for retirement on June 30th and its impact on pensionary benefits has been provided. The calculation of arrears on basic pension and dearness allowance (DA) for those who retired on June 30th can be illustrated with an example. Suppose an employee retired in June 2022, with a pay level of 7 (GP 4600) and a basic pay of Rs. 52000. In such a case, the arrears amount for basic pension and DA would be calculated from July to December 2022, and the employee would receive the same.
Month | Year | Basic Pay | Basic Pension | DA 38% | Total |
June | 2022 | 52000 | |||
July | 2022 | 52000 | 26000 | 9880 | 35880 |
August | 2022 | 52000 | 26000 | 9880 | 35880 |
September | 2022 | 52000 | 26000 | 9880 | 35880 |
October | 2022 | 52000 | 26000 | 9880 | 35880 |
November | 2022 | 52000 | 26000 | 9880 | 35880 |
December | 2022 | 52000 | 26000 | 9880 | 35880 |
Total | 215280 |
Due Pension and DA from July to Dec 2022
Month | Year | Basic Pay | Basic Pension | DA 38% | Total |
June | 2022 | 53600 | |||
July | 2022 | 53600 | 26800 | 10184 | 36984 |
August | 2022 | 53600 | 26800 | 10184 | 36984 |
September | 2022 | 53600 | 26800 | 10184 | 36984 |
October | 2022 | 53600 | 26800 | 10184 | 36984 |
November | 2022 | 53600 | 26800 | 10184 | 36984 |
December | 2022 | 53600 | 26800 | 10184 | 36984 |
Total | 221904 | ||||
Arrears | 6624 |
The above calculation is given for informative purposes only! This calculation has denoted the arrears for basic pension and DA only! Other retirement benefits will be calculated in the same manner!
How to calculate arrears on Commutation for 30th June Retirement?
To determine the arrears on commutation for retirement on June 30th, several factors must be taken into account, including the basic pension, dearness relief, commutated portion amount, and bank pension and commutation value calculation. These calculations can be applied to a basic salary of Rs.52000 or Rs.53600.
7th Pay Matrix Level | Pay Level 7 | Pay Level 7 |
Basic Salary | Rs.52,000 | Rs.53,600 |
Basic Pension | Rs.26,000 | Rs.26,800 |
Dearness Allowance (38%) | Rs.9,880 | Rs.10,184 |
Commuted Portion of Pension (40%) | Rs.10,400 | Rs.10,720 |
Pension After Commutation | Rs.15,600 | Rs.16,080 |
Bank Pension | Rs.25,480 | Rs.26,264 |
Basic Pension, Bank Pension, Commutation Value Calculation and arrears for basic salary of Rs.52000 and Rs.53600
Commutation | 40% | 40% |
Your Basic Pay | 52000 | 53600 |
Your Basic Pension | 26000 | 26800 |
40% of Basic Pension | 10400 | 10720 |
Reduced Pension after Commutation | 15600 | 16080 |
Commutation | 1022611 | 1054076 |
Difference on Commutation | 31465 |
Latest Dopt Orders on Notional Increment
- TN 7th Pay Commission : Pay Matrix Annual Increment Calculation September 26, 2024
- Date of Next Increment on Promotion or MACP – Rule 10 of CCS (RP) 2016 September 21, 2024
- Notional Increment for Pensionary Benefits – Court Judgement on Annual Increment August 9, 2024
- One Notional Increment to Those Retired on 30 June After Completion of 365 days August 9, 2024
- July and January Notional Annual Increment for Pensionary Benefits – IRTSA February 5, 2024
- Increment Day 1.1.2024 for Central Government Employees December 28, 2023
- Check Your Next Annual or Promotional Increment in Our Online Calculator! October 24, 2023
- CAT Jabalpur and Delhi Court Orders for Benefit of One Notional Increment August 4, 2023
- Grant of Notional Increment for Pensionary Benefits – Railway Board July 14, 2023
- Grant of Notional Increment (as due on 1st July) for the Pensionary Benefits June 28, 2023
- Grant of Notional Increment to Employees retiring on 30th June and 31st December June 28, 2023
- Latest News Who Retired 30 June Add One Increment May 28, 2023
- 7th CPC Recommendations Implementation Day: Is Attendance Compulsory? April 10, 2023
- Grant Special Increment as Personal Pay to AIS Officers: DoPT Order 3.8.2021 August 4, 2021
- Grant of Annual Increment Due on 1st July to the Employees retiring on 30th June of the Year – Dopt on 24 June 2021 June 25, 2021
- Date of next increment under Rule 10: One More Opportunity to Exercise the Option May 28, 2021
- Date of Next Increment clarification order issued by Finance Ministry on 15.4.2021 April 19, 2021
- Grant of Notional Increment and Re Fixation of Pensionary Benefits – BPS December 3, 2020
- 7th Pay Commission Advance Increment in 7th Pay Commission to Stenographers – DoPT Order 24.7.2020 July 25, 2020
- Today is the Day for Annual Increment for Central Govt employees – 1.7.2020 July 1, 2020
- Compilation of Government Orders on Annual Increment for CG Staff and Officers June 28, 2020
- 7th Pay Commission Pay Matrix Annual Increment Table for CG Employees June 28, 2020
- 7th Pay Commission Annual Increment – Some Questions and Answers June 26, 2020
- Annual Increment on 1.7.2020 for Central Govt Employees June 25, 2020
- Annual Increment for Central Govt Employees – Claim and FactCheck June 20, 2020
- Rounding off the amount of Annual Increment Rules June 20, 2020
- Grant of annual increment due on 1st July to the employees retiring on 30th June of the year June 4, 2020
- Notional Increment on the day of retirement (increment due on next day) for the purpose of fixation of pension May 16, 2020
- Circulation of OM issued by MoF – DoE regarding 7th CPC April 17, 2020
- Clarification on Date of Next Increment under CCS Rule 10 December 27, 2019
- Determination of Date of Next Increment – Rajya Sabha Questions and Answers December 18, 2019
- Clarification on the Date of Next Increment in 6 Months on Promotion December 2, 2019
- New Annual Increment Rules applicable to Railway employees November 7, 2019
- Avoid Financial Loss to Employees on their Pay Fixation in 7th CPC Pay Matrix – NFIR October 4, 2019
- Increment issue to those retiring on 30th June – SLP dismissed by Supreme Court August 20, 2019
- 7th CPC Increment: Increment Day for CG Employees July 1, 2019
- 7th CPC Increment Calculator for Central Govt Employees June 27, 2019
- 7th Pay Commission Annual Increment Rates and Calculation June 25, 2019
- 7th Pay Commission Increment – Recommendations on Increment Calculation June 14, 2019
- 7th Pay Commission News: Increment Anomaly Calculator June 11, 2019
- 2 Additional Increments to Nursing Staff under 7th Pay Commission – Railway Board Orders June 5, 2019
- Rule 10 of Army Officers and Air Force Officers Pay Rules – MoD Orders May 3, 2019
- 2 Additional Increments to Nursing Personnel – NFIR December 15, 2018
- Finmin Clarification on Increment Date in Rule 10 of CCS (RP) Rules August 2, 2018
- 7th CPC Bunching Anomaly : Denial of Bunching Increment July 6, 2017
- 7th CPC Increment Anomaly – Annual Increment Rate Less than 3% in Pay Matrix July 6, 2017
- Annual increment – Benchmark for MACP or Regular Promotion November 23, 2016
- Date of Birth on 1st January 1956 forced him to retire a month advance affects his 7th CPC benefits June 12, 2016
- Dorai focus on two crucial issues of 50% DA Merger and 3% Increment April 25, 2016
- OROP Table 72 – Disability / Liberalized Disability Element for 100% Disability for Commissioned Officers of Territorial Army February 5, 2016
- 2 Increment days proposal ignored by 7th Pay Commission December 23, 2015
- Performance is the main constraint on Annual Increment in 7th CPC December 15, 2015
- Assessment of INDWF on 7th CPC Recommendations – Fitment, Annual Increment MACP and Cadre Review December 9, 2015
- Opposition to notification of OROP – Rajya Sabha Q&A on 1.12.2015 December 8, 2015
- 7th CPC Increment : Recommendations on Annual and Promotional Increment December 6, 2015
- OROP Notification issued by Central Government for Defence Forces personnel November 7, 2015
- One Rank One Pension – Expected Pension hike and Arrears for ex-servicemen September 7, 2015
- Spotlight of One Rank One Pension September 5, 2015
- One Rank One Pension : A new wave of expectation rises; Announcements expected in 48 hours September 4, 2015
- Arun Jaitley on OROP – Annual pension revision do not happen anywhere in the world September 1, 2015
- Grant of Increment for those who have completed one year on the day of superannuation – NC JCM Staff Side writes to Secretary of DoPT July 11, 2015
- Yearly Increment Calculation – Will the 7th CPC continue the same formula or it brings any changes in to it…! July 9, 2015
- 7th Pay Commission likely to recommend Jan 1, July 1 as Annual Increment days June 30, 2015
- Calculation of Annual Increment for Central Government employees as per 6th CPC May 16, 2015
- Rounding off the amount of Increment to next multiple of 10 May 15, 2015
- 6th CPC INTRODUCES NEW METHOD OF CALCULATION FOR INCREMENTS May 15, 2015
- Increment benefit comparison between 5th & 6th Pay Commission May 15, 2015
- Increment issues – Why is Annual Increment denied to employees retiring in June? May 15, 2015
- Injustice to newly recruited Accountant in respect of 1st increment of service life – NFCAA January 21, 2015
- Why is Annual Increment denied to employees retiring in June? May 23, 2014
- Annual Increment for Central Govt Employees – Comparison table between 5th & 6th CPC April 25, 2014
- 6th CPC INTRODUCED NEW METHOD OF CALCULATION FOR INCREMENTS March 25, 2014
- Rounding off the amount of Increment to next multiple of 10 February 27, 2014
Dopt Orders on Topics
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J B Mane says
For grant of notional increment from 1st July , based on Hon ‘ble Apex court judgement read with other intermittent orders of CAT /HC ’s etc, (Aurangabad Bench of Hon ble High Court, Mumbai clarified that SC judgement is applicable to all similarly placed employees & Maharashtra govt issued OM directing to implement judgement in rem for all retired employees) .In Rajya sabha, Hon Minister clarified that its applicable only to litigant( in personam & not in rem) thus, hundred of cases coming before the CAT /HC and of course ,decided in favour of employees based on apex court judgement. It’s sad to say that aged pensioner’s has to pay Advocate fee ranging Rs.10,000/- to Rs50,000/-for court process besides intermittant travel to court.Besides,thousands are paid by Govt in defending cases before CAT/HC besides TA/DA for staff defending cases.Govt knows that ultimately they are looser and SC order gets confirmed.But,DoPT/MOF are seems to be adamant and just want harras poor aged retired pensioner’s. One other day, DoPT /MOF employees are in the same boat and after retirement they may be litigant’s too? Therefore, it’s an hamble appeal to DoPT to grant one notional increment based on Apex Court judgement ibid to all eligible retired employees, without resorting court to long marathon procees. I oblige.
E JAYABALAN says
The Hon’ble Supreme Court erred in not giving a specific instructions/orders to Central Govt to implement the order, within a stipulated time in respect pensioners who are all similarly placed as decided in Ayyamperumal case and also in Siddaraju case.. Generally,in cases of this nature of common benefits is involved and judicial decision is taken,, the courts should invariably give a specific instructions to govt concerned to implement the order through a common circular issued to all departments of government and produce the copy of such circular before court. This will avoid all confusion and delay in implementing the court order and avoid multiplication of litigation.
Bipin Bihari Mishra says
I too am looking for DOPT order to facilitate further approach. I retired on 30 June 2016.
John Gonsalves says
Even after five months have elapsed, the issue of Notional increment has not been taken seriously by the Govt. of India though the Supreme Court has given its verdict in favour of the pensioners who retired on 30th June and 31st December. How long they will delay the issue and curb the legitimate dues of the pensioners. It is very sad for the pensioners. The issue should be addressed immediately.
R S Rathore says
The issue regarding grant of notional increment to those government servants who retired on superannuation after rendering 365 days of service efficiently entitling them for annual increment despite of hon, ble Supreme Court verdict dated 11.4.2023 & subsequently May 2023 by the Dopt even after a lapse of more than almost three months period shows that everything is not going well with the Modi government. Certain ministers in charge seem to spoil the image of Modi ji which is not a good indication . This needs to be looked in to immediately so that there may be fair play in the said matter so far as justice is concerned.
Advocate D.M.Shukl Garje says
Dear Rathore Saheb, I fully agree with you. Hon’ble Prime Minister has no role to play in such petty issue. Infact, this Govt. has done commendable job like ” One Rank One Pension” and other schemes for the welfare of employees despite tough situations due to Corona Pandemic. In some countries , employees did not get even salary.
The public servants dealing with service matters in the respective departments are the main culprit and such public servants having anti Modi prejudices deliberately indulge in such delaying tactics to percolate wrong message as if Modi Govt is against the employees.