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Economic Times
3 days ago
- Business
- Economic Times
Higher pension: These central government employees to get pension hike due to minor salary increase
ET Online Pension The Department of Personnel and Training (DoPT) has issued an official clarification regarding the provision of notional increments to employees who retired a day prior to their due date, i.e. June 30 or December 31. This clarification follows previous orders and is issued subsequent to the Supreme Court's final directives given on February 20, 2025. This move will significantly impact pension calculations for eligible retired employees and serve as a welcome relief to many who have been awaiting clarity following court interventions. The notional increment is for the purpose of calculating pensionary benefits. Although monetary increments are not paid during service, they are taken into account when calculating pensions. The benefit of a notional increment for pension purposes will be available to officials retiring or who have retired on June 30 or December 31 on or after January 1, 2006, contingent upon meeting the conditions outlined in the DoPT's Office Memorandum dated February 20, 2025. Read more: Central govt employees will get notional increment if they are retiring a day before annual pay hike On February 20, 2025, the Department of Personnel and Training (DoPT) issued a detailed clarification regarding the granting of notional increments on July 1 or January 1 to central government employees who retire on June 30 or December 31, respectively, and have completed the required qualifying service with good conduct and satisfactory performance by the date of their retirement, specifically for the calculation of their pension. This increment will be considered only for pension calculation, not for any other pensionary benefits. Effective date for monetary benefit Effective May 1, 2023, all eligible pensioners who retire on or before April 30, 2023, will receive the actual financial benefits resulting from the increased pension (due to the notional increment). The specific instructions from the court will be applicable to individuals who currently hold court orders in their favour. 8th Pay Commission: Has govt received any suggestions on Terms of Reference for 8th Pay Commission? Check the Parliament statement, suggestions According to the DoP order on July 17, 2025, 'The actual monetary benefit of higher pension based on this notional increment will be paid with effect from 01.05.2023 to all eligible employees who retired on or before 30.04.2023, except those who already have a court order in their favour. In such cases, the specific directions of the court shall apply.' Special cases with legal proceedings The Department of Posts order issued on July 17, 2025, stated, 'If an eligible retired employee has filed an application for intervention, impleadment, writ petition, or original application before a CAT, High Court, or the Supreme Court, the enhanced pension by including one increment will be payable for the period of three years prior to the month in which the application for intervention/impleadment/writ petition/original application was filed.' Conflicting lower court orders to be challenged If any lower court orders contradict the Supreme Court's February 20, 2025, decision or violate the conditions mentioned, they shall be challenged before the higher judiciary to maintain consistency. Re-opening of cases decided in the past The cases which have already been implemented need not be re-opened, the DoP order said. N.R. Narayana Murthy Founder, Infosys Watch Now Harsh Mariwala Chairman & Founder, Marico Watch Now Adar Poonawalla CEO, Serum Institute of India Watch Now Ronnie Screwvala Chairperson & Co-founder, upGrad Watch Now Puneet Dalmia Managing Director, Dalmia Bharat group Watch Now Martin Schwenk Former President & CEO, Mercedes-Benz, Thailand Watch Now Nadir Godrej Managing Director, of Godrej Industries Watch Now Manu Jain Former- Global Vice President, Xiaomi Watch Now Nithin Kamath Founder, CEO, Zerodha Watch Now Anil Agarwal Executive Chairman, Vedanta Resources Watch Now Dr. Prathap C. Reddy Founder Chairman, Apollo Hospitals Watch Now Vikram Kirloskar Former Vice Chairman, Toyota Kirloskar Motor Watch Now Kiran Mazumdar Shaw Executive Chairperson, Biocon Limited Watch Now Shashi Kiran Shetty Chairman of Allcargo Logistics, ECU Worldwide and Gati Ltd Watch Now Samir K Modi Managing Director, Modi Enterprises Watch Now R Gopalakrishnan Former Director Tata Sons, Former Vice Chairman, HUL Watch Now Sanjiv Mehta Former Chairman / CEO, Hindustan Unilever Watch Now Dr Ajai Chowdhry Co-Founder, HCL, Chairman EPIC Foundation, Author, Just Aspire Watch Now Shiv Khera Author, Business Consultant, Motivational Speaker Watch Now Nakul Anand Executive Director, ITC Limited Watch Now RS Sodhi Former MD, Amul & President, Indian Dairy Association Watch Now Anil Rai Gupta Managing Director & Chairman, Havells Watch Now Zia Mody Co-Founder & Managing Partner, AZB & Partners Watch Now Arundhati Bhattacharya Chairperson & CEO, Salesforce India Watch Now
India.com
3 days ago
- Business
- India.com
Little Salary Increase, Huge Pension Surprise: Central Govt Employees Set To Gain More Than Expected
photoDetails english 2937305 The central government has clarified that certain employees retiring on June 30 or December 31 are eligible for a notional increment affecting pension calculations. Though not paid during service, this increment is added to calculate pensions. Eligible retirees from January 1, 2006, onwards receive this benefit if they meet conduct and performance criteria. The pension hike became effective from May 1, 2023, including back payments for some cases. Those involved in legal proceedings may get enhanced pensions retroactively. Conflicting lower court orders will be challenged to ensure consistency, but already settled cases won't be reopened, offering much-needed pension clarity and relief. Updated:Jul 26, 2025, 05:16 PM IST What is the Notional Increment Benefit? 1 / 7 The notional increment refers to an increment that is not actually paid during service but is considered solely for calculating pension benefits. This ensures pension calculations reflect the increment employees would have received if they had continued in service beyond June 30 or December 31. Who is Eligible for the Notional Increment? 2 / 7 Central government employees who retire or have retired on June 30 or December 31, on or after January 1, 2006, and who meet the qualifying conditions of good conduct and satisfactory performance, are eligible for the notional increment. This is based on DoPT's Office Memorandum dated February 20, 2025. Clarification Issued by DoPT on February 20, 2025 3 / 7 The Department of Personnel and Training (DoPT) clarified that notional increments granted on July 1 or January 1 to employees retiring on June 30 or December 31 respectively, will be counted only for pension calculation and not for other pensionary benefits. Effective Date for Monetary Benefits 4 / 7 The actual increase in pension due to the notional increment started from May 1, 2023, for all eligible pensioners who retired on or before April 30, 2023. Those with existing court orders will have their pensions adjusted as per those specific orders. Special Cases Involving Legal Proceedings 5 / 7 For retired employees who have filed applications such as intervention, impleadment, writ petitions, or original applications before tribunals or courts, the enhanced pension including one increment will be payable for the three years prior to the filing of such applications. Addressing Conflicting Lower Court Orders 6 / 7 Any contradictory orders from lower courts that conflict with the Supreme Court's February 20, 2025 decision or violate DoPT conditions will be challenged in higher courts to maintain uniformity in pension calculations. Re-opening of Previously Decided Cases 7 / 7 Cases that have already been implemented under earlier orders are not required to be re-opened, as per the Department of Posts order issued on July 17, 2025.
Business Recorder
16-07-2025
- Business
- Business Recorder
Rs50bn extra subsidies to power consumers: Planning ministry defies ECC decision
ISLAMABAD: The Ministry of Planning, Development and Special Initiatives has reportedly declined to comply with the Economic Coordination Committee's decision to allocate Rs50 billion in additional subsidies to power consumers over a three-month period, well-informed sources told Business Recorder. According to sources, the Planning Ministry has referred to a letter from the Finance Division dated May 16, 2025, and an Office Memorandum (OM) from the Power Division dated June 5, 2025, regarding the ECC's May 5, 2025 decision on 'tariff rationalization for the power sector – waiver of rebasing for up to 200 units.' The Planning Ministry argues that, under the Public Finance Management (PFM) Act 2019, funds under the Public Sector Development Program (PSDP) are to be allocated and released solely for duly approved development projects. The Ministry pointed out that the Federal Cabinet had approved the Rs50 billion reallocation from the PSDP during its meeting on July 8, 2024, based on a summary from the Power Division. However, the Finance Division subsequently revised the PSDP 2024–25 allocation downward—from Rs1,400 billion to Rs1,100 billion—via an Office Memorandum issued on July 26, 2024. As a result, ministries and divisions collectively surrendered Rs300 billion to absorb the reduction. Ministry seeks Rs1.6trn PSDP: FY26 budget on June 2 The Planning Ministry has stated that, in light of this overall reduction, it cannot surrender an additional Rs50 billion at this stage. However, it has no objection if the Finance Division reallocates the required funds from the Rs300 billion already surrendered by other ministries under PSDP 2024–25. It has advised the Power Division to approach the Finance Division accordingly. Official documents reveal that the ECC, on May 5, 2025, had directed the Planning Ministry to surrender Rs50 billion from the PSDP to the Power Division as part of the government's commitment to meet circular debt (CD) targets agreed with the International Monetary Fund (IMF). The Power Division had earlier informed the ECC that the Prime Minister's Office, on May 13, 2024, instructed it to finalize a plan for off-grid energy solutions, including the solarization of tube wells in Balochistan, for the FY 2024–25 budget. Subsequently, consultative meetings were held under the chairmanship of the Minister for Power and the Chief Minister of Balochistan. The sessions were attended by the Ministers for Commerce and State for Power, provincial ministers, secretaries, and energy experts. The recommendations from these meetings were presented to the Prime Minister on February 2, 2024. It was agreed to solarize approximately 27,000 agricultural tube wells, each eligible for compensation of up to Rs2 million, contingent upon disconnection from the national grid. The cost—estimated at Rs55 billion—would be shared between the federal government (70%) and the Balochistan government (30%). A detailed agreement, including implementation mechanisms via Standard Operating Procedures and a Steering Committee, was signed on July 8, 2024, by the Power Division Secretary and the Chief Secretary of Balochistan. The Cabinet gave formal approval on July 31, 2024. So far, Rs14 billion has been released via a Technical Supplementary Grant (TSG) from the National Food Security and Research Division's budget under the Prime Minister's National Programme for Solarization of Agricultural Tube Wells. The Power Division informed the ECC that the remaining Rs24.5 billion would need to be provided from the Rs50 billion additional subsidy allocation proposed by the Finance Division. It emphasized that, in order to meet the revised CD flow target of Rs337 billion by June 2025, it must utilize the entire Rs1.229 trillion subsidy allocated for the power sector. The Cabinet's July 8, 2024, approval to reallocate Rs50 billion from the PSDP to fund tariff differential subsidies is part of this subsidy allocation. While the Power Division agreed to allocate funds from its existing budget in the short term, it requested that any shortfall be reimbursed in June 2025 to meet IMF-agreed CD targets. To address the issue, the Power Division submitted two proposals: (i) Finance Division should surrender Rs50 billion from PSDP to the power subsidy lump provision in Demand No. 45, as per the Cabinet's July 8, 2024 approval; and (ii) a Technical Supplementary Grant of Rs24.5 billion should be transferred from Demand No. 45 of the Finance Division to Demand No. 33 of the Power Division, for the implementation of the solarization project in Balochistan. Copyright Business Recorder, 2025
New Indian Express
08-07-2025
- Politics
- New Indian Express
Delhi University faculty slams periodic review, retirement policy
NEW DELHI: Senior faculty members at Delhi University have voiced strong opposition to a proposed policy mandating periodic review and compulsory retirement of university employees, arguing that it undermines the institution's autonomy and targets senior staff unfairly. At a meeting held on Monday by a committee constituted by DU's Executive Council (EC), Dr Mithuraaj Dhusiya submitted a detailed note challenging the applicability of the Department of Personnel and Training's (DoPT) Office Memorandum dated June 27, 2024. Dhusiya contended that the policy has no legal basis in Central Universities like DU, which operate under UGC-approved ordinances. Citing the Allahabad High Court's ruling in Dr Suchitra Mitra vs Union of India, he emphasised that professors at central universities are not government servants and do not hold civil posts under the Union, making the Central Civil Services (CCS) rules inapplicable. 'The Professors of the University are neither members of a service nor do they hold a civil post under the Union,' the court had ruled, reaffirming that such rules do not apply to central universities. He also referred to a 2018 statement by former HRD Minister Prakash Javadekar, clarifying that universities with their own ordinances are not obligated to adopt CCS rules. Raising concerns over the policy's intent, Dhusiya argued that it disproportionately targets employees above 50 years of age while sparing junior staff. Terming it 'arbitrary' and a 'witch-hunt,' he accused the administration of attempting to replace permanent staff with temporary or contractual hires. 'This notification is an unmitigated disaster,' he wrote, adding that it threatens to institutionalize contractual employment across the board. The committee is yet to take a final call, with the next round of discussions scheduled for July 10.
Indian Express
01-07-2025
- Politics
- Indian Express
On ‘retirement day', Gujarat DGP Vikas Sahay receives six-month extension
On the day he was supposed to superannuate, Gujarat DGP Vikas Sahay received a six-month extension to his tenure on Monday. Besides being the Director General of Police (DGP), Sahay is also the Inspector General (IG) of the state. With the extension order, Sahay will remain the chief of the Gujarat Police till December 31. The order issued by the Appointments Committee of the Cabinet (ACC), referencing an Office Memorandum (OM) from the Ministry of Home Affairs, stated, 'The ACC has approved the proposal of the Ministry of Home Affairs for extension of service to Vikas Sahay, IPS (GJ-1989), DGP Gujarat for a period of six months beyond his date of superannuation i.e. June 30, 2025, in relaxation of Rule 16 (1) of AIS (All India Services)… as a special case in public interest.' Sahay, who was earlier posted as DGP Training, was appointed in-charge DGP of Gujarat Police with effect from February 1, 2023, and appointed to the job full-time on March 1, 2023. Notably, Sahay is the third consecutive DGP of Gujarat Police to receive an extension. His immediate predecessor, DGP Ashish Bhatia (1985 batch), who was appointed chief of Gujarat Police with effect from August 1, 2020, and was set to retire on May 31, 2022, had received an 8-month extension till January 31, 2023. Similarly, Bhatia's predecessor, DGP Shivanand Jha, who was appointed to the top post in April 2018, and was supposed to superannuate on April 30, 2020, was given a 3-month extension till July 31, 2020.
