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Why is Annual Increment denied to employees retiring in June?

Why is Annual Increment denied to employees retiring in June?

Until 01.01.2006, the date of implementing employee’s annual increment was fixed on the basis of his/her date of appointment or promotion option. After the 6th CPC, it was decided that 1st July of each year would be the uniform date of implementation of annual increment for all Central Government employees. 

Employees who are appointed after January 1st are not eligible for that year’s annual increment on July 1. They qualify for annual increment only the next year. 

The revised pay rules said that "If an employee is on leave or is availing joining time on the 1st of July, the benefit of annual increment in pay will be drawn only from the date on which he resumes duty and not from the first of July. Each year, employees who retire in the month of June are not given the annual increment of the year since they do not report to work on 1st July. Only those employees who resume duty on July 1st are eligible to receive the annual increment. Or, the day they report back to work is taken as the date for implementing the annual increment. Since there are no possibilities for the retired employees to return to work, they are not considered as qualified to receive the annual increment.

The revised pay rules states that only those who have been receiving the same basic pay continuously for 6 months are considered as qualified for annual increment. According to the another rule of qualification for increment, the person should have complete one year in service after receiving the annual increment. Therefore, despite being qualified, these employees are denied their annual increment. 

There is an order that states that those who retire on July 1st should complete the retirement formalities in the month of June. 

Instead of strictly looking into such technicalities, it would be a nice gesture on the part of the Government to extend the benefits of annual increment to those senior employees too who retire from service in the month of June. 


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Unknown said…
as govt. later accepted and give increment for those income fell between feb. and June 2006 now those who are retiring may also get the same benefit.
vijayan said…
While I agree with Mr. Padmanabhan, I feel that full natural justice can be ensured if increment on prorata basis for the months completed should be given to the retiring employees. That is increment/12 * number of months completed. Denying incremental benefits to employees retiring in June,May or any completed month is denial of natural justice..... vijayan
Unknown said…
The value of increment is in the nature of an incentive earned.For the accounting purposes, the financial benefits will depend on one single factor, for being on duty on the day on which the increment is due...
Anonymous said…
till 12.00 hours of that night of the day on which an employee retires he is the government servants. on 0.01hours his relationship is severed from government service. hence he is not entitled for increments
Anonymous said…
who joined on feb 2,2006. did not get increment before 17 month.pls tell where is justice?
Anonymous said…
An increment is earned on completion of 12 months. In the instant case the employee has earned his increment by completing 12months service as on 30th June and it has got to be given to those who retire on 30th June. Interestingly my date of birth was 1st July and my date of superannuation falls on 30th June, whereas a person's dob is 2nd July onwards earns an increment and superannuates on 31st August. This is an aberration needs to be settled. Number of those who retire on 30th June are not much and giving one increment is not going to cost much to the exchequer. Hope good sense prevail upon the minds of the officials who decide our fate.
i fully agree with the comments of anonymous that all employees whose date of birth falls on 1st July but retiring on 30th June should also be given the incremental benefit, as the dates of granting increment were unilaterally shifted to 1st july and 1st respect of all employees whose earlier date of increment was in Jan./Feb.Since not much revenue is involved if one increment is given for calculating pensionary benefits, the concerned rule ought to be amended retrospectively as pensions be refixed. In the annals of taxation ,based on various Apex Court decisions, the standard rule is that when there are two equally valid interpretations of a rule or notification, the interpretation in favour of the assessee to give him tax benefit is to be applied, even if there is revenue loss. The same ratio decidendi should apply here and if the concerned officials dealing in these matters(who will also similarly retire after some time) do not agree, PIL or other legal remediesmay be sought by the Blog administrator by engaging a good administrative counsel for which contributions from all employees and affected people would be given immediately. Hence urgent action is required to be taken.
R.S. Rathod said…
For the entitlement of annual increment rendering 12 months service is the criterion & as such a person retiring/ retired on 30 th June after rendering 12 months service becomes entitled for notional increment for the purpose of retirement benefits. The condition of joining duty on 1st. Of July does apply to him since he is no more in service on that date due to his retirement which does not mean that he will be deprived off his legitimate right/claim. If the Govt. see the matter with open mind & eyes it cannot be denied merely on the petty ground of expenditure on Govt. exchequer which should not so significance as the justice.
R.S. Rathod said…
We are surprised to read the logic of administrative authorities that for drawl of annual increment after completion of 12 months service joining of duty on 1st. Of the following month is mandatory as the increment would be payable on joining duty. This condition is for the normal cases,but so far as the grant of notional increment in respect of those govt. servants who after rendering full 12 months service retire either on 30th June or 31st December, the said condition cannot be imposed as the hon,ble court talk about the notional increment for the purpose of pensionary benefits to such govt. servants who after rendering 12 months qualifying service is concerned the same may be seen on the grounds that they are deprived of the benefit to which they are virtually entitled merely on hypothetical grounds does not seem justified. The govt. of India may consider the matter in the light of court judgemen & spirit of the occasion so demands for the sake of justice.
BK Narasimhamurthy said…
in a recent case madras high court ordered in wp no 15107/2016 and wmp 13159/16 judgement delivered on 16/8/2017 against petition filed under article 226 statinf that one notional increment shall be granted for those tamilnadu government employees who have completed one year service but could not join for duty next day due to superannuation. Judgement further says that all eligible retired employees shall be given this benefit however financial benefit shall be from 31/12/2014. this benefit shall be extended for DCRG also. This benefit is extended based on Tamilnadu redressal committe recomendation and high court order. Hope unjon govt will also extend this benefit,

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