Higher Pension for June 30 Retirees: Punjab & Haryana High Court Gives Relief

The Punjab and Haryana High Court has given an important ruling for government employees who retire on June 30. The court said that such employees are entitled to receive their annual increment if they have completed one full year of satisfactory service. This means they will also get a higher pension, as the increment will now be included in their final salary calculation.

Why This Matters

Earlier, many employees who retired on June 30 missed out on their annual increment, which is normally added on July 1 every year. Since their retirement came a day before the increment date, they were denied the benefit despite completing a full year of service. This also reduced their pension amount because pensions are calculated on the last drawn salary.

The new ruling changes this. The High Court clarified that employees who have worked for a full 12 months after their last increment deserve the next increment, even if they retire a day before the official increment date.

Who Will Benefit

The benefit will apply to employees who have completed 12 months of continuous and satisfactory service as of June 30. For them, the increment will be added to their salary, leading to a higher pension amount after retirement.

However, those who have worked for less than 12 months after receiving their last increment will not be eligible for this benefit. The court explained that an annual increment is meant to reward one year of service, so it cannot be granted for a shorter duration.

Impact on Pension Calculations

This decision will have a direct impact on pension payments. Employees who qualify under this rule can expect their pension to increase since the final salary will now include the additional increment. This could also influence how similar cases are handled across other states, as many employees face the same issue of losing their increment due to timing of retirement.

Read more: PM-Kisan 21st Instalment: J&K Farmers Received an Advanced Payment; What’s the Timeline for Others?

Conclusion

The ruling brings much-needed clarity and fairness to the increment policy for government employees. By allowing the annual increment to those retiring on June 30, the High Court ensured that employees who have served a full year are not deprived of their rightful benefits. This decision upholds the principle that hard work and service throughout the year should be recognised, regardless of the technicalities of a retirement date.

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