Grant of notional increment (as due on 1st July/1st January) to those employees who had retired on 30th of June/31st of December before drawing the same — Re-iteration of Instructions: Railway Board Order dated 21.05.2025
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)
No. PC-VI/2020/CC/13
New Delhi, dated: 21.05.2025
The General Managers/ Principal Financial Advisors,
All Zonal Railways & Production Units
Sub: Grant of notional increment (as due on 1st July/1st January) to those employees who had retired on 30th of June/31st of December before drawing the same — Re-iteration of Instructions reg.
Ref: Board’s letters No. PC-V1/2020/CC/13 dated 03.12.2024 & 19.02.2025.
Attention is invited to Board’s letters under reference (copies enclosed) whereby necessary instructions/ clarifications on the issue of grant of benefit of notional increment to those employees who had retired on 30th of June/31st of December before drawing the same were circulated to all Zonal Railways/ PUs in light of interim order dated 06.09.2024 pronounced by Hon’ble Supreme Court in the clarificatory petition filed vide MA No. 2400/2024 (Union of India & Ors Vs M. Siddaraj).
2. Subsequently, the Hon’ble Apex Court vide their final order dated 20.02.2025 (copy enclosed) had disposed of the aforesaid clarificatory petition inter-alia observing as under:
“Clauses (a), (b) and (c) of the order dated 06.09.2024 will be treated as final directions. We are, however, of the opinion that Clause (d) of the order dated 06.09.2024 requires modification which shall now read as under:
“(d) In case any retired employee filed an application for intervention’ impleadment/ writ petition/original application before the Central Administrative Tribunal/ High Courts/this 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. ”
Further, clause (d) will not apply to the retired government employee who filed a writ petition/ original application or an application for intervention before the Central Administrative Tribunal/ High Courts/this Court after the judgment in “Union of India & Anr v. M. Siddaraj”, as in such cases, clause (a) will apply.
Recording the aforesaid, the miscellaneous applications are disposed of.”
3, Consequent to above final directions of Hon’ble Supreme Court, DOP&T vide their O.M. dated 20.05.2025 (copy enclosed) has issued further clarification/ guidelines regarding grant of notional increment. The said guidelines/clarifications have been adopted on all Indian Railways vide Board’s letter dated 21.05.2025 (copy enclosed).
4, Despite necessary instructions/ clarifications on notional increment issued from Board’s office, there have been instances where the orders pronounced by various Courts/ Tribunals are not being complied within the stipulated time period by the field units which is resulting in an exponential increase in the number of filing of contempt cases against the senior officials of Railway Board and the Zonal Railways.
5. Hence, all Zonal Railways/PUs are hereby advised that whenever orders granting the benefit of notional increment are pronounced by any Court/Tribunal, the same shall be thoroughly scrutinized and after ascertaining the eligibility for grant of notional increment, the orders shall be implemented in letter & spirit granting the benefit in light of Board’s instructions/ clarifications issued from time to time. Needless to say, earnest efforts should be made to finalize the cases without reaching at the contempt stage.
6, In any unforeseen circumstances of contempt proceedings being initiated, it is advised that all such contempt cases shall be monitored regularly at the level of JAG officer for any procedural lapses in effective handling of these cases and ensure that no unpleasant situation shall arise owing to non-compliance of orders pronounced by various courts of law.
DA: As above.
(Sundeep Pal)
Executive Director, Pay Commission
Railway Board
Tel. No. 011-47845117
Email add: sundeep.p[at]gov.in
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