Pension New Rule: The central government has given good news to lakhs of employees across the country by changing the pension rules. Now employees retiring on 30 June or 31 December will not miss the increment.
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Pension New Rule: The government has once again made a big change and provided relief to millions of employees of the country. Under the new rule, employees who retire on 30 June or 31 December, i.e. just a day before the salary hike, will also get the benefit of increment. Actually, the government has decided to give notional increment to such employees so that pension calculation for them can also be done on the same basis.
Now pension will be decided on this basis
This decision of the government will provide relief to thousands of employees who earlier used to miss the increment due to a difference of just one day. Actually, dearness allowance has to be increased on 1 January or 1 July. In such a situation, the benefit of annual increment is added before calculating the pension. On the basis of this increment, it will be decided how much will be the lump sum amount that the employee will get on retirement and how much pension he will get after that. With this new decision of the government, the employees who retire before the increase in dearness allowance will be given the benefit of increment by adding it to their pension.
Supreme Court also approved
In 2006, the government had fixed July 1 as the date for uniform salary hike every year. In 2016, two dates were made – January 1 and July 1. When the employees who retired just a day before this missed the increment, it also affected the pension. In 2017, the Madras High Court, while hearing a case, gave the benefit of notional salary hike to the retired employee. After this, the Supreme Court also approved the right to get notional increment in such cases in 2023 and 2024.
This is a thing to keep in mind
The Department of Personnel and Training (DoPT) has issued an office memorandum on May 20, 2025, clarifying that now this benefit will be available to all eligible central employees, provided they have completed the service properly. However, the thing to keep in mind is that the calculation of notional pension will be done only for monthly pension. This will not apply to other retirement benefits such as gratuity, leave encashment, pension commutation. Suppose if an employee’s salary was Rs 79,000 on June 30 and he was to get an increment of Rs 2,000 from July 1, then now his pension will be decided on the basis of Rs 81,000.
