look news india
There is a great news for millions of government employees of the country! The government has made a change in pension rules, which was waiting for a long time. Now if an employee retires an annual increase in his salary, ie on 30 June or 31 December, he will still get the benefit of that increment.
The government has decided to give ‘noble increment’ to such employees. This means that his pension will be calculated on the basis of the increased salary, which he had to get the next day of retirement. This is a breath of relief for thousands of employees who missed this big benefit due to just one day’s difference. Of course, this is a historical step that will make the life of post -retirement financially stronger.
How will your pension be decided now? Understand complete mathematics
Earlier it was that if the dearness allowance (DA) was to increase on January 1 or July 1, and an employee retired exactly a day earlier, he could not get the benefit of that year’s salary increase in pension. But now this will not happen.
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Increased base: This fictional annual salary increase will be added to the last salary of the employee before the pension calculation.
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Benefits only: On the basis of this increased salary, it will be decided how much money will be given to the employee on retirement (except for gratuity etc.) and then how much pension will come every month. That is, now the employees retiring just before the increase in dearness allowance will also get the benefit of this salary increase in their pension, which will give them financial security for a long period.
Supreme Court also showed green signal
This issue was under discussion for a long time. Let us tell you that in 2006, the government had fixed the same date (July 1) of annual increment. Then in 2016 it was changed to two dates – 1 January and 1 July -. But the employees who retired just a day before these dates, were deprived of the increase, which had a direct impact on their pension.
In this case, in 2017, the Madras High Court, while giving a verdict in favor of a retired employee, gave him the benefit of imaginary increment. Subsequently, the Supreme Court also justified this right of employees in many such cases in 2023 and 2024. This was an important step to protect the interests of employees from the judiciary.
What is ‘fictional pension’ and its rules?
The Department of Personnel and Training (DOPT) has issued an office memorandum on May 20, 2025, making it clear that all the eligible central employees will now get this benefit, provided they have completed their service correctly.
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Penitive thing: It is important to understand that this ‘fictional increment’ will be mainly used only for calculating your monthly pension. Its advantage will not apply to other retirement benefits such as gratuity, leave incashing (retired detection), and pension communication.
Understand with an example:
Suppose an employee’s salary was ₹ 79,000 on June 30 and he was to get an increase of ₹ 2,000 from 1 July. Now, under the new rule, after retirement, his pension will be calculated on the basis of ₹ 79,000 + ₹ 2,000 = ₹ 81,000. This is a clear instruction, so that there will be no scope for any kind of confusion and the employees will get their right right.