Notional increment on 1st July/1st January for pensionary benefits: Clarification on Eligibility, Effective date etc.

 

 

F. No. 02-14/2020 — PAP (Part file)
Ministry of Communications
Department of Posts
[Establishment Division/P.A.P. Section]

Dak Bhawan, Sansad Marg,
New Delhi-110001
Dated: 17.07.2025

To,
1. All Chief Postmasters General/Postmasters General.
2. CGM, BD Directorate/Parcel Directorate/PLI Directorate.
3. Addl. Director General, Army Postal Service, R.K. Puram, New Delhi.
4. All General Managers (Finance)/Directors Postal Accounts/DDAP.

Sub: – Grant of notional increment on 1st July/1st January to the employees who retired from Central Govt. Service on 30th June/31st December respectively for the purpose of calculating their pensionary benefits-regarding.

Sir/Madam,

In continuation of this office OM of even no. 18.10.2024 and Corrigendum dated 11.11.2024, | am directed to forward herewith DoPT’s OM No. 19/116/2024-Pers.Pol.(Pay) (Pt) dated 20.05.2025 whereby guidelines to deal with the cases of grant of notional increment to the officials retiring on 30th June or 31st December, as the case may be, have been issued based on the final directions dated 20.02.2025 of Hon’ble Supreme Court in MA No. 2400/2024.

 2. Further to receipt of the Order dated 20.05.2025, this Department has sought clarification from DoPT on certain issues. Based on their clarification dated 08.07.2025 and the judgment of the Hon’ble Supreme Court following is clarified:

2.1. Eligibility

The benefit of a notional increment for pension purpose will be extended to Officials retiring/nave retired on 30th June or 31st December on or after 01.01.2006, subject to fulfillment of the conditions laid down in DoPT’s OM dated 20.05.2025.

2.2. Date of effect of order and General Conditions for third parties

The actual monetary benefit of higher pension based on this notional increment will be paid w.e.f 01.05.2023 to all eligible employees retired on or before 30.04.2023, except those who already have a court order in their favour. In such cases, the specific directions of the Court shall apply.

2.3. Cases having specific directions of the Court

If an eligible retired employee has filed an application for intervention, impleadment, writ petition, or original application before a CAT, High Court, or the Supreme Coun, the enhanced pension by including one increment will be payable for the period of three years prior to the month in which the application for intervention/impleadment/writ petition/original application was filed. The said direction of Hon’ble Supreme Court will, however, not apply to the retired government employees who filed a writ petition/original application or an application for intervention before the CATs/High Courts/Supreme Court after the judgement in “Union of India & Anr. Vs M. Siddaraj case”, as in such cases direction referred in para 3(a) of DoPT O.M. dated 20.05.2025 will apply.

After the issuance of the orders dated 20.02.2025 of the Hon’ble Supreme Court, if the directions of any lower Courts are contrary to these instructions, such orders shall be challenged before the Higher Court to the extent they violate these conditions.

2.4. Re-opening of cases decided in past

The cases which have already been implemented need not to be re-opened.

This issues with the approval of the Competent Authority.

Yours faithfully,

(SAPNA)
Assistant Director General (PE-II) L.O ADG (PAP)