In a recent update, the office of the Government of India has issued a corrigendum regarding the grant of notional increments for employees who retired from Central Government service on 30th June or 31st December. This revision impacts the calculation of pensionary benefits for retired employees, effective from 1st May 2023.
Revised Guidelines for Grant of Notional Increment
As per the corrigendum, there has been a modification to Para 3 of the Office Memorandum (OM) No. 02-14/2020 – PAP dated 18th October 2024. The key revision is as follows:
- Eligibility for Notional Increment: The notional increment will be granted on 1st July or 1st January, as applicable, to employees who retired on 30th June or 31st December. The official must have completed the requisite qualifying service by the date of their superannuation, along with satisfactory work performance and good conduct.
- Enhanced Pension: The benefit of enhanced pension will be applicable from 1st May 2023 onwards. However, enhanced pension for the period prior to 30th April 2023 will not be paid.
- Scope of Notional Increment: The notional increment will only be applicable for the calculation of pension benefits and will not be admissible for other pensionary benefits.
- Subject to Review Petition Outcome: The payment of enhanced pension is contingent upon the outcome of the Review Petition of the Government of India, as referenced in the original OM.
Key Details of the Original OM
The rest of the provisions in the OM dated 18th October 2024 remain unchanged. This revision provides clarity on the applicability of notional increments and ensures that pension calculations are aligned with the latest government instructions.
Implications for Retired Employees
For retired employees of the Central Government, this corrigendum brings an important opportunity for those who retired on 30th June or 31st December. It ensures that their pension is calculated with the benefit of a notional increment, provided they meet the eligibility criteria. However, it is important to note that this change does not apply to any other pension-related benefits.
Conclusion: The revised guidelines in this corrigendum will positively impact the pensionary benefits of eligible retired employees. However, it is crucial for affected individuals to be aware of the specific terms and the review petition’s influence on the implementation of enhanced pensions.