The Supreme Court observed that a contract job period should be counted for pensionary benefits, once the government employee is regularized.
A bench of Justices PS Narasimha and Joymalya Bagchi ruled in favour of government employees who were initially appointed on a contractual basis and later regularized, holding that they are entitled to pensionary benefits for their entire service period.
The Court rejected the denial of benefits based on Rule 2(g) of the Central Civil Services (Pension) Rules, 1972 (“Pension Rules”), which excludes contractual employees, stating that once regularized, the entire service period must be counted for pension purposes.
The Court took note of Rule 17 of the Pension Rules, which states that once service is regularized, the entire service, i.e., contractual and regular, counts for pension, thereby overriding Rule 2(g).
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