Now such employees will be given a notional increment so that their pension can be decided properly. This decision is a relief for thousands of employees who till now used to miss the increment due to a difference of just one day. Although this increment will not be real, but it will provide direct benefit in pension, which is important for security after retirement.

What is notional increment?

Notional increment means that the increment received by the employee one day after retirement will be given notional, so that the pension can be calculated on the basis of increased salary. However, this increment will be considered only for pension, not for other benefits.

What was happening till now?

In 2006, the government had fixed a uniform increment date of 1 July every year. In 2016, two dates were made – 1 January and 1 July. Due to this, employees who retired on 30 June or 31 December missed the increment, which affected their pension.

In 2017, the Madras High Court gave the benefit of notional increment to a retired employee in a case. Later, the Supreme Court also accepted this right in such cases in 2023 and 2024.

What has changed now?

The Department of Personnel and Training (DoPT) has issued an office memo on May 20, 2025, making it clear that now this benefit will be available to all eligible central employees, if they have completed the entire eligible service satisfactorily.

What things need to be kept in mind?

This notional increment will be only for the calculation of monthly pension. It will not be considered for other retirement benefits like gratuity, leave encashment, pension commutation etc. If an employee’s monthly salary was Rs 79,000 on June 30 and he was going to get an increment of Rs 2,000 from July 1, then now his pension will be decided on the basis of Rs 81,000.

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Many times it takes months to process. Now the central government has fixed a deadline for pensioners according to which the pension will be processed. Regarding this, the Finance Ministry has issued an order, in which all the officers have been directed to strictly follow the deadline as per CCS (Pension) Rules 2021.

Pension process has to be completed on time

According to the CCS (Pension) Rules, 2021, it is mandatory to complete pension cases on time. So that, retiring employees can get pension on time. For this, employees have to start checking their service records and making other preparations one year before their retirement.

Time limit for pension:

One year before retirement : Service record has to be checked and initial work has to be started.

Six months before retirement: The employee has to submit the required forms to his office head.

Four months before retirement: The head of the office has to send the pension case to the Pension Accounting Office (PAO).

One month before retirement: Pension Accounting Office has to issue Pension Payment Order (PPO) and send it to Central Pension Accounting Office (CPAO).

There is also a provision in the rules that if a final decision on the pension and gratuity of an employee is not taken and he has to retire, then he will be given a temporary pension (provisional pension).

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Deadlines must be met:

The government has directed all pension accounting offices to strictly adhere to the timelines for processing pension cases to ensure timely payment of retirement dues.

• This information is important
• Name of the pensioner
• Date of retirement

Date of submission of pensioner’s documents (six months before retirement)

The date on which the pension case is sent to the pension accounting office by the head of the office (4 months before retirement). This new system will help millions of senior citizens to easily complete their pension related work.

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If you are also an employee, then your salary is also going to increase. Planning is being done by the Central Government to increase the salary of the employees. Let us tell you that these days many discussions are going on in the whole country regarding the old pension scheme. The old pension scheme has been implemented in many states. At the same time, the battle to implement OPS is going on in many states.

Salary will increase by full 6000 rupees!

In the midst of the ongoing demand to restore the old pension scheme across the country, the government is planning to increase the minimum salary limit of the employees. After Holi, the government can give the gift of increased salary to the employees. It is believed that the government will directly increase the minimum salary from Rs 15,000 to Rs 21,000.

The last increase was in 2014.

Let us tell you that after increasing the minimum salary limit of the employees, there will be a bumper increase in the pension as well. Before this, last time in the year 2014, the government had increased this limit. At present, in the new year, the government is planning to increase the salary once again. With the increase in salary, the contribution to PF will also increase and at the same time the pension will also increase.

Contribution of PF will also increase

Talking about the contribution of Provident Fund, the minimum salary is calculated at Rs 15,000, due to which only a maximum of Rs 1250 can be contributed to the EPS account. If the government increases the salary limit, then the contribution will also increase. After the increase in salary, the monthly contribution will be Rs 1749 (8.33% of Rs 21,000).

How much is the difference between old pension and new pension If we talk about the old pension scheme, then even after the death of the retired employee, his family members get pension. For example, let us tell you that if an employee is getting a salary of Rs 80,000 now, then after retirement, according to the old pension scheme, he will get a pension of about Rs 35 to 40 thousand. Apart from this, in the new pension, this employee will get a pension of about 800 to 1000 rupees.

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