Do you know that the retiring central employees are in for a treat. The central government employees who will retire on 30 June or 31 December will get the benefit of national increment. Due to this, they will also get the benefit of higher pension. This is being considered a big announcement for the employees.
According to the order of the Department of Personnel and Training, the employees retiring a day before the annual increment will get the benefit of a notional increment i.e. imaginary salary hike for the calculation of their pension benefits, which will be like a big gift. The order issued by DoPT is being discussed everywhere.
What is the new order of DoPT
According to the order of DoPT, if a central employee retires just a day before the annual salary hike, then he will also get the benefit of annual increment before calculating his pension. The central government increases DA for employees every year in January and July.
When did the salary increment system change?
Before the year 2006, the rate of salary hike for employees used to vary. But it was decided to fix it from January 1, 2005. Then salary increment was also given on July 1 every year. In 2016, there was a change once again and two dates 1 January and 1 July are fixed for salary increment. Employees who retired just a day before this date were not able to get the benefit of increment.
Court gave verdict
For information, let us tell you that many employees had opposed the rule. They also went to court regarding this. In the year 2017, the Madras High Court gave a verdict in favor of the employee in a case and DoPT implemented it. The Supreme Court also made it clear in the year 2023 and then in 2024 that if an employee has worked honestly throughout the year, then he is entitled to increment even on the last day of the job.