Grant Notional Increment on 1st January & 1st July to calculate the terminal/retirement benefits – NFIR request to MoF

Grant Notional Increment on 1st January & 1st July to calculate the
terminal/retirement benefits – NFIR request to MoF
N F I R
National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI – 110 055
Affiliated to :
Indian National Trade Union Congress (INTUC)
International Transport Workers’ Federation (ITF)
No. I/l 1/PartI
Dated: 11/12/2018
The Secretary (Pers),
Ministry of Finance,
Department of Expenditure,
North Block,
New Delhi
Dear Sir,
Sub: Grant of increment on notional basis on 1st January & 1st of July
to those employees retiring on 30th June/31st of December – Apex Court
order-reg.

Pursuant to the implementation of the recommendations of 6th CPC, the Staff
Side of National Council (JCM) had raised the demand, urging that the Central
Government Employees including Railway employees who complete one year service as on 30th June
and 31st December every year should be granted one increment notionally on 1st January or 1st
July for calculating settlement benefit of those employees who retire on 30th June or 31st
December each year. The Government however did not agree to the demand on the plea that allowing
increment is not covered under the rules. 
In the above context, NFIR desires to bring to the notice of MoF that the
High Court at Madras was approached by some employees through Writ Petition No.
15732/2017 praying relief in the matter. On 15/09/2017, the High Court at
Madras decided on the Writ Petition and passed order as follows:- 
“Para-7 The Petitioner herein had completed one full year service as on
30/06/2013, but the increment fell due on 01/07/2013, on which date he was not in
service. In View of the above Judgment of this Court, naturally he has to be treated as
having completed one full year of service, though the date of increment falls on
the next day of his retirement. Applying the said one notional increment for the period
from 01/07/2012 to 30/06/2013, as he has completed one full year of service,
though his increment fell on 01/07/2013, for the purpose of pensionary benefits and
not for any other purpose”. 
Against the above order of the High Court an SLP was filed by the
Government of India before the Hon’ble Supreme Court, which was however dismissed by the Apex
Court. The legal position as established above clearly indicates that the employee
who has completed one full year service as on 30th June or 31st December, as the
case may be, should be granted one notional increment despite the fact that the increment falls on
1st July or 1st January of the year. The Federation cites following illustration to prove our
contention:- 
“An employee who has completed one full year of service as on 30th June
(date of birth being 30th June or 1st July) and 31st of December (date of birth being 31st
December or 1st January) is eligible to get one notional increment for the period from
01/07/2018. Similarly an employee is eligible to get one notional increment for the
period from 01/01/2018 to 31/12/2018 even though the increment falls on 01/01/2019
whose date of retirement is 31/12/2018”. 
NFIR, therefore, requests the Secretary, MoF to kindly consider the above
points and see that instructions are issued to all Ministries/Departments to grant
increment on notional basis to the staff in the situations mentioned above to calculate the
terminal/retirement benefits and also revise these benefits in favour of those who have already retired. A copy
of instructions issued may kindly be endorsed to the Federation. 
Yours faithfully
(Dr. M. Raghavaiah)
General Secretary
  • Copy to the Secretary (E), Railway Board, New Delhi for information and
    necessary action please.
  •  Copy to the General Secretaries of affiliated Unions of NFIR.
  •  Media Centre/NFIR.
grant-of-increment-on-notioanl-basis-on-1st-january-and-1st-july-01

grant-of-increment-on-notioanl-basis-on-1st-january-and-1st-july-02

Source: NFIR

Read also :  Endorsing of Aadhaar Number on Referrals : ECHS Order dated 03.10.2017

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