Skip to main content

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. 

-----------------------------------------------------------------------------------------------------------------

Read our exclusive articles about Expected DA and 7th CPC...






------------------------------------------------------------------------------------------------------------------



Comments

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.
V.Padmanabhan
T.O. VCRC(ICMR)
Puducherry
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.
Unknown said…
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 Jan.in 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,

Popular Posts

Expected Dearness Allowance (DA) from July 2020 Calculator

Expected DA from July 2020 Calculator
Expected Dearness Allowance from July 2020 Calculator with the input of AICPIN.
The calculation of Dearness allowance with effect from 1st July 2020 begins with the AICPIN (January 2020) of this year. We provide here a simple online tool (not excel sheet format) to predict the percentage of additional DA and DR with the input of imaginary AICPIN.
Click to Calculate DA from July 2020

DA Calculation from July 2020 – 90 Paisa

Expected DA Calculation from July 2020 – 90 Paisa
After releasing the AICPIN for the month of April 2020, the next stage of expected DA calculation is completed!
Even though the additional dearness allowance is frozen for 18 months from January 2020 to June 2021 to all Central government employees and pensioners, the calculation of Dearness allowance is an ongoing process! As per the press release of the AICPIN for the month of April 2020, the index is increased by three points from its existing level. Now, the AICPIN is standing at 329.
Click to read continue...

Revised Pay Matrix Table for CG Employees issued on 16.5.2017

Revised Pay Matrix Table for CG Employees issued on 16.5.2017
The Government of India has decided to revise the pay of Level 13 in Civilian Pay Matrix recommended by 7th Central Pay Commission. On 16th May, 2017 the Finance Ministry published a Gazette Notification on its portal regarding the revision of pay matrix for the level 13. So, the first pay matrix table has been published by 7th Central Pay Commission on 19th November, 2015. And the same has accepted by the Indian Government and published in Gazette Notification on 25th July, 2016. Now, the revised pay matrix table has been published by the Finance Ministry on 16.5.2017. Here we presented three pay matrix tables given for your information...
Click to read the Notification
Pay Matrix Table recommended as per the 7th CPC New Amended Matrix Table

DA Arrears Loss Calculator from Jan 2020 to June 2021

DA Loss in Salary Calculator for the period of January 2020 to June 2021 for Central Government Employees
Additional DA Freeze (Temporarily Suspended) for Central Govt employees for eighteen months between January 2020 and June 2021.
July 2020 DA & January 2021 DA Calculation
The Cabinet Committee already approved to increase 4% additional DA from January 2020 on the basis of Consumer Price Index (CPI). The next installment from July 2020 is expected to increase by 4% additionally. And another installment will also be expected to hike by 4% with effect from 1st January 2021. The below-expected DA list, which is used in our software tool for your information;
Click to Calculate Your Arrears for 18 Months

Increment Day for Central Government employees – 1st July of every year

1st July of every year – ‘Increment Day’ for Central Government employees
As per the 6th Pay Commission CCS (Revised Pay) Rules 2008, provisions of Rule 10 with effect from 1.1.2006, uniform date of increment was implemented for all Central Government employees i.e. 1st July of every year. One more condition for getting increment is provided in this rule, completing six months in the same pay as on 1st of July are only eligible to be granted the annual increment.  Who have not rendered six months period of service as on first of a year will not be eligible to draw increment on that day and their date of increment will fall 12 months later on the next 1st of July.

Dearness Relief (DR) Loss in Pension Calculator for Govt Pensioners

Dearness Relief (DR) Loss in Pension Calculator for Government Pensioners
 After implemented an important order issued by the Finance Ministry under the title of “Freezing of Dearness Allowance and Dearness Relief” on 23rd April 2020, all Central Government pensioners including Railways are wishing to know their total contribution to the Govt.
All Central Government pensioners are paid only 17% Dearness Relief (DR) of basic pension between January 2020 and June 2021. Let us see the loss of the DR month-wise report
Click to Calculate Your Pension Arrears Amount for 18 Moths

CCS (CCA) RULES - Resignation from Service procedure

CENTRAL CIVIL SERVICES (CCA) RULES, 1965
CCS (CCA) RULES - Resignation from Service
(12) Resignation from Service procedure in respect of :-

Instructions have been issued from time to time on the subject of resignation. These instructions have now been consolidated for facility of reference and guidance of all the Ministry/Departments of the Government of India.
1. Resignation is an intimation in writing sent to the competent authority by the incumbent of a post, of his intention or proposal to resign the office/post either immediately or from a future specified date. A resignation has to be clear and unconditional.
2. it is not in the interest of Government to retain an unwilling Government servant in service. The general rule, therefore, is that a resignation of a Government servant from service should be accepted, except in the circumstances indicated below :-
(i) Where the Government servant concerned is engaged on work of importance and it would take…

7th CPC Pay Fixation on Promotion/MACP Calculator with Matrix Table

7th CPC Pay Fixation on Promotion/MACP Calculator with Matrix Table
Pay Fixation on Promotion/MACP Calculator as per 7th Pay Commission with Steps showing in Pay Matrix Table.
Pay Fixation: One increment shall be given in the same level and placed equal or next higher amount in the promoted level.
Increment: Promotion/MACP during the period from 2nd day of January to 1st day of July will be granted on 1st day of January. From 2nd day of July to 1st day of January will be granted on 1st day of July.
In Matrix Table: Step 1: Locate Your Basic Pay in the Matrix Table Step 2: Grant of one increment in the same level Step 3: Locate the equal or next higher amount in the next promoted level
Click to Check Your Pay Fixation on Promotion
Calculators for CG Employees 7th Pay Commission Pay and Allowances 
Calculator for CG Employees
Click to read... 7th Pay Commission Pay and Arrears 
Calculator for Defence Personnel
Click to read... Defence PBOR Pay Calculator as per 
Gazette Notification issued by 
MoD…

7th Pay Commission MACP Calculator as per Rule FR 22(I)(a)(1)

7th Pay Commission MACP Calculator as per Rule FR 22(I)(a)(1)
While getting Promotion or MACP in Central Government Services, the promotee could choose to fix his pay on the date of promotion or date of next increment

After issuing an important order by DoPT on 27th July 2017, we developed a new calculator as per the provisions under FR 22(I)(a)(1).


CLICK TO CALCULATE

CSD Canteen Price List : Latest CSD Price List of Bikes

Canteen Stores Department – Depot – Chennai Fort : Latest CSD Price List of Motor Bikes
We have compiled here the latest CSD prices of Two Wheelers/Motor Bikes. The most selling products of Bajaj, TVS, Yamaha, Royal Enfield and Suzuki prices are providing here for your convenience… You are advised, please before indent the items you once again confirm the prices and availability of your choice at your nearest Depot or Unit Run Canteens. All prices given in the table are at Chennai base only.  

Hero Motor Cycle :
CSD Price List at Chennai Depot (Updated on Sep 2017)
Hero Motor Cycle CSD Price list Index Items Amount 63074 HF Deluxe Drum Kick Cast 33862 63119 HF Deluxe Drum Self Cast 40384 63105 Hero Splendor Plus 41439 63120 Hero Motor Cycle Splendor + Cast wheel 42002 63214