Notional Increment Boosts Pension Calculations for Retiring Central Government Employees

Central government employees who retire the day before their annual pay increment date will be granted a notional increment to aid in calculating their pension, as per a new directive issued following a Supreme Court ruling.

The governing rules permit employees to select January 1 or July 1 for their increment. However, the Supreme Court's specific orders state that the notional increment will be considered solely for pension calculation, and not for other benefits.

The All India NPS Employees Federation, representing government staff welfare, applauded the announcement. Their president, Manjeet Singh Patel, urged the government to extend these benefits to employees participating in the National Pension System, impacting approximately 48.66 lakh workers.

(With inputs from agencies.)