Grant of Notional Increment for the pensionary benefits – IRTSA Memorandum to consider increment under Rule 10 after DNI fixation of pay on promotion/MACP

Grant of Notional Increment for the pensionary benefits – IRTSA Memorandum to consider increment under Rule 10 after DNI fixation of pay on promotion/MACP:

INDIAN RAILWAYS TECHNICAL SUPERVISORS’ ASSOCIATION

No:IRTSA/Memo-10

Date:08.03.2026 03.08.2026

Director General (HR)
Railway Board
Respected Sir,

Sub: Grant of notional annual increment (as due on 1st July/1st January) for the pensionary benefits to those employees who have retired/retiring on 30th of June/31st December before drawing the same.

Ref: Railway Board letter No. PC-VI/2024/Misc/04, dated 16.07.2026.
Railway Board letter No. PC-VI/2020/CC/13 dated 03.12.2024.

1) We would like to bring to your kind notice on applicability of benefit of national increment in terms of Hon’ble Supreme Courts Judgement and Board’s instructions on specific cases that require clarifications.

2) Specific issue for some of the employees received promotion and retired from service in between period of order on Date of Next Increment (DNI) dated 31.08.2018 and order on grant of Grant of notional annual increment (as due on 1st July/1st January) for the pensionary benefits to those employees who have retired/retiring on 30th of June/31st December before drawing the same dated 03.12.2024, is brought under.

3) The Ministry of Finance’s O.M dated 31.07.2018 adopted by RBE No.126/2018 dated 31.08.2008, pertains to pay fixation for government employees, particularly those who are (were) promoted or granted financial up-gradation on or after January 1, 2016 says that, If the option for pay fixation is exercised, the next increment in the new grade may be granted after six months of qualifying service.

4) Clarification issued Finance Ministry dated 28.11.2019 adopted by Railways vide RBE no 212/2019 dated 18.12.2019 states that,

“6. The opportunity to exercise of option for pay fixation under FR 22(I)(a)(1) is available to employees in case of promotion/financial up-gradation. Therefore, the Central Government Employee promoted on regular basis/granted financial up gradation on any date other than the date of his/her annual increment in lower grade and exercises the option under FR 22(I)(a)(1) read with Department of Personnel & Training’s OM No.13/02/2017-Estt.(Pay-I) dated 27.07.2017 for fixation of pay from the date of accrual of next increment in the scale of pay in lower grade, he may be allowed the 1st increment in promotional grade on 1st January/ 1st July as the case may be after completion of 6 months’ qualifying service after such fixation on 1st July/1st January (i.e., the date of increment in lower grade) on the analogy of Department of Expenditure’s OM dated 31.07.2018. The next increment, thereafter, shall however, accrue only after completion of one year”.

5) Arising out of Hon’ble Supreme Court’s judgement, vide DoPT O.M. dated 14.10.2024 adopted by Railway Board letter No. PC-VI/2020/CC/13 dated 03.12.2024, increment is allowed on 1st July / 1st January to employees retired or retiring on 30th June / 31st December who have rendered requisite qualifying service as on the date of superannuation.

Para 7 of DoPT O.M. dated 14.10.2024 states that, “The matter has been examined in consultation with D/o Expenditure and D/o Legal Affairs. It is advised that in pursuance of the Order dated 06.09.2024 of the Hon’ble Supreme Court referred above, action may be taken to allow the increment on 1st July/ 1st January to the Central Government employees who retired/are retiring a day before it became due i.e. on 30th June/31st December and have rendered the requisite qualifying service as on the date of their superannuation with satisfactory work and good conduct for calculating the pension admissible to them.

6) While implementing above Board’s letter dated 03.12.2024, some of the employees received promotion and retired prior to this order having completed requisite qualifying service of more than six months (but less than one year) for the next increment are denied notional increment. This has placed them in disadvantageous position with equally placed employees superannuating one or two months later.

7) Illustration on employee received promotion on Dec 2022, superannuated on June 2023 denied notional increment and another employee received promotion on Dec 2022, superannuated on July 2023 granted notional increment is given below

In brief, after getting promotion from level-7 to level-8, his pay was fixed as Rs.83,600 in level-8 w.e.f. 01.12.2022. He superannuated from service on 30th June 2023 after rendering requisite qualifying service of more than six months for the next increment as per RBE No. 212/2019. Hence, he is eligible for grant of one notional increment in Pay level-8 and his basic pay to be fixed as Rs.86,100 based on his superannuation date 30th June 2023 eligibility from 1st July 2023 and corresponding refixation of his basic pension.

8) Your goodself is requested to consider above submission and take necessary action to grant notional increment for some of the employees received promotion and retired from service in between period of order on Date of Next Increment (DNI) dated 31.08.2018 and order on grant of Grant of notional annual increment dated 03.12.2024, having qualifying service of more than six months but less than one year.

Thank you in anticipation

Sd/-
K.V.RAMESH
General Secretary, IRTSA
9003149578

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Additional Member (Staff), Railway Board, New Delhi.
Secretary, Railway Board

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