Important Update: Notional Increment Benefit for Central Government Pensioners
We wish to inform our esteemed veterans, pensioners, and legal colleagues about a landmark update concerning notional increment benefits for Central Government employees who retired just before their scheduled annual increment date.
The Department of Personnel & Training (DoPT) has issued a Office Memorandum dated 20 May 2025, in line with the Supreme Court’s decision in Union of India & Anr. vs. M. Siddaraj [Civil Appeal No. 2471 of 2023].
Aim of the circular :
1. Employees who retired on 30th June or 31st December are entitled to one notional increment, only for pension computation.
2. Applicable only if one full year of service was completed with good conduct prior to retirement.
3. Gratuity and other retirement benefits remain unchanged.
Effective Date & Arrears:
For employees without litigation, benefits apply from 1 May 2023 onwards (no arrears before this).
For employees with favorable court orders:
Cases filed before 11 April 2023: Benefits & arrears for up to 3 years prior to filing.
Cases filed after 11 April 2023: Benefits only from 1 May 2023.
No recovery if excess pension already paid.
This is a significant relief for many retired employees and sets a crucial precedent in pension jurisprudence. We encourage all eligible pensioners and stakeholders to review the official memorandum and take necessary steps for benefit realization.
Feel free to reach out for case-specific advice or clarification.
One More Step Toward Justice for Pensioner
Notional Increment for Those Retiring on 30th June or 31st Decembe