Last Updated on December 27, 2024 by Satish Mishra
Notional Increment in government job is trending all over CAT Tribunals across India and pensioners are the most interested in this concern.
The order of Supreme Court clearly states for matter pertaining to pension admissible and not for any other pensionary benefits. Enhanced pension for the period prior to 30.4.2023 will not be paid as per CA no. 2471/2023. Benefit will be given to third party by considering one increment payable on or after 1.5.2023.
Very important to quote from DOPT circulars, Under notional fixation, the pay is actually fixed in higher pay scale from the date of such notional fixation, increments in the higher pay scales are also allowed but no arrears are payable.
A notional increment is an increment added to a retiree’s pay to calculate their pension benefits:
Eligibility
Central government employees who retire on June 30 or December 31 and have completed the required qualifying service with good conduct are eligible for a notional increment.
Calculation
The notional increment is calculated by adding a number of increments earned at the employee’s level while serving, at a rate of 3%.
Payment
The increment is only for pension calculation purposes and is not paid out.
Date
The notional increment is granted on July 1 or January 1, depending on the date of retirement.
Notional Increment for Central Government Employees
The issue of benefit of increment on the last date of retirement is no longer res integra after the decision of Hon’ble Supreme Court in KPTCL. Now the issue raised in before CAT Tribunal Chandigarh, has been finally adjudicated by the Hon’bl e Ape x Court i n the matter of KPTC L (supra), nothing survive s to adjudicate herein
Recently, the Hon’ble Apex Court in Miscellaneous Application (Diary No. 2400/2024) preferred by Union of India in Special Leave Petition (C) No. 4722/2021 (Union of India & Anr. vs. M. Siddaraj), vide interim order dated 06.09.2024 clarified the date of applicability of the judgment dated 11.04.2023 passed in Civil Appeal No. 2471/2023 titled “The Director (Admn. and HR) KPTCL & Ors. vs. C.P. Mundinamani & Ors., as follows: –
“(a) The judgment dated 11.04.2023 will be given effect to in case of third parties from the date of the judgment, that is, the pension by taking into account one increment will be payable on and after 01.05.2023. Enhanced pension for the period prior to 31.04.2023 will not be paid.
(b) For persons who have filed writ petitions and succeeded, the directions given in the said judgment will operate as res judicata, and accordingly, an enhanced pension by taking one increment would have to be paid.
(c) The direction in (b) will not apply, where the judgment has not attained finality, and cases where an appeal has been preferred, or if filed, is entertained by the appellate court.
(d) In case any retired employee has filed any application for intervention/impleadment in Civil Appeal No. 3933/2023 or any other writ petition and a beneficial order has been passed, the enhanced pension by including one increment will be payable from the month in which the application for intervention/impleadment was filed.”
From the perusal of interim order dated 06.09.2024, it is evident that the Hon’ble Supreme Court is seized of the matter and the matter is fixed for further consideration before Hon’ble Apex Court.
However, the DoPT on the basis of Hon’ble Apex Court’s interim order dated 06.09.2024 issued O.M dated 14.10.2024, wherein, it has been observed as under:
“It is advised that in pursuance of the Order dated 06.09.2024 of the Hon’ble Supreme Court referred above, action may be taken to allow the increment on 1st July/1st January to the Central Government employees who retired/are retiring a day before it became due i.e. 30th June/31st December and have rendered the requisite qualifying service as on the date of their superannuation with satisfactory work and good conduct for calculating the pension admissible to them. As specifically mentioned in the Orders of the Hon’ble Supreme Court, grant of the notional increment on 1st January/1st July shall be reckoned only for the purpose of calculating the pension admissible and not for the purpose of calculation of other pensionary benefits.
Now for government organizations to consider and decide the claim of applicants in terms of the observations in interim order dated 06.09.2024 passed by the Hon’ble Apex Court, viz-a-viz DoPT’s O.M dated 14.10.2024. Though it will be subject to the final outcome of the order passed by the Hon’ble Apex Court.
Gconnect.in covers this topic in the best possible manner and avoids all confusion to come during the interim. Let’s read them below:
On 6th September 2024, the Supreme Court issued interim orders to address ongoing confusion:
- Effective Date: The 11th April 2023 judgement applies to third-party employees from 1st May 2023 onward. No enhanced pensions will be paid for the period before 30th April 2023.
- Successful Petitioners: Employees who filed successful petitions will receive an enhanced pension.
- Pending Appeals: The directive does not apply if the judgement is still under appeal.
- Intervention Applications: Retired employees with pending applications will receive enhanced pensions from the month of application.
These interim orders remain in effect until further directions. Employees who have already received enhanced pensions will not be affected.
Let us wait for the order of Supreme Court till (Dy no. 36418/2024) then.
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