Annual increment due on 1st July to the employees retiring on 30th June
of the year: Railway Board Order. Railway Board has issued
clarification based on DoPT’s OM.
All Indian Railways and Production Units |
(As per standard ailing list)
File No.PC-VI/2018/R-I/1 -Part(1)
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)
NO. PC V1 /2018/R-I/1 Pt.GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)
New Delhi, dated 21.05.2020
The General ManagerAll Indian Railways and Production Units |
(As per standard ailing list)
Sub: Grant of annual increment due on 1st July to the employees retiring on 30th June of the year
A number of representations are being
received in this office seeking grant of one notional increment as due
on 1st July in favour of employee retiring on 30th June before drawing
the same, exclusively for the purpose of pensionary benefits.
2. As the Railways are aware, the annual
increment is granted to railway employees on completion of laid down
qualifying service for the purpose. Based on the recommendations of the
Sixth Central Pay Commission, as accepted by the Government of India,
Railway Services (Revised Pay) Rules, 2008 were notified on the lines of
Central Civil Services (Revised Pay) Rules, 2008. As per Rule 10 of
above Rules, it was stipulated that there will be a uniform date of
annual increment, viz. 1st July of every year and the employees
completing 6 months and above in the revised pay structure as on 1 of
July will be eligible to be granted the increment. There has been no
change in the above rule / extant policy so as to enable grant of
increment (notional or actual) on 30th June, where it was due on the
following 1st July.
3, In the various representations being
received in this office, certain Judgments in the case of Shri
Ayyamperumal, an employee of Department of Revenue are being cited. As
the details of above court matter and policy decision of concerned nodal
departments were not available in this office, the matter was referred
to concerned departments of Government of India seeking their advice /
guidelines.
4, DOP&T vide their O.M dated
11.11.2019 have stated that the Judgment passed in the case of Shri P.
Ayyamperumal is in personam. Further, the judgment pronounced by Hon’ble
High Court of Madras in P. Ayyamperumal case, as endorsed by Hon’ble
Supreme Court, is based on the decision in the case of M.
Balasubramaniam, which was related to Fundamental Rules of State Govt.
However Central Government employees are governed by Central Government
Rules. Further, Hon’ble High Court of Andhra Pradesh at Hyderabad in C.
Subbarao case has inter-alia observed that “A person who retires on the
last working day would not be entitled for any increment falling due on
the next day and payable next day thereafter, because he would not
answer the tests in these Rules.” A copy of DOP&T O.M dated
11.11.2019 is enclosed herewith.
5. The Railways are therefore advised to
take further necessary action to dispose off the pending
representations on the issue based on above position and advice of
DOP&T. The pending court cases may also be defended accordingly.
Further, in case any clarification / inputs are required relating to
railway Fundamental Rules and Railway Pension Rules, Finance (Estt.)
dte. may also please be consulted being the nodal directorate on these
aspects. This issues with the approval of DG/HR, Railway Board.
DA: As above
(U. K. Tiwari)
Joint Director, Pay Commission
Railway Board
Joint Director, Pay Commission
Railway Board