Overview

• The Department of Personnel and Training (DoPT) issued an Office Memorandum on May 20, 2025, granting notional increments for pension purposes to employees retiring on June 30 or December 31.
• This policy applies exclusively to pension calculations and does not extend to other retirement benefits like gratuity or leave encashment.
• Eligibility requires employees to have completed the requisite qualifying service with satisfactory work and conduct as of their retirement date.
• The decision follows a February 2025 Supreme Court directive and builds on earlier legal rulings recognizing the right to a notional increment.
• Employee federations have welcomed the move, with calls to extend similar benefits to members of the National Pension System.