Government of Pakistan, Finance Division issued a Notification on 20-09-2022 in connection with the Grant of Usual Increment in the Year of Retirement for Promotion Cases. Before this, if an employee due the Usual Increment was, the Accounts Offices did not grant this increment due to the reason that the said employee was promoted during that year and the employee had not completed 6 months of service after promotion. But now the Finance Division has allowed this Usual Increment for such cases.
Grant of Usual Increment in the Year of Retirement for Promotion Cases
The undersigned directs to refer to Finance Division’s O.M. No.3(20)R-2/98 dated 08.09.1999 read with O.M. No.3(20)R-2/98 dated 29.12.199 and O.M No. 11(1)R-2/2007-590 dated 01.01.2015. These Notifications provide that a civil servant has the right for the usual annual increment, for the purpose of calculation of pension only, on completion of six months of service in the year of retirement irrespective of due of 1st December following the completion of six months.
Query In Promotion Cases Usual Increment
It has been pointed out from various quarters that the civil servants who have been promoted from lower to higher post/scale after completion of six months of service in the year of retirement could not get the benefit of annual increment, for the purpose of calculation of pension, if they retire before 1st December following the promotion merely because they have not completed six months service after promotion in the higher post/scale in the year of retirement.
Clarification
Finance Division clarifies that in such cases, for the purpose of calculation of pension only, their pay in the higher post/scale may be re-fixed on the basis of pay fixed in the lower post after allowing the benefit of annual increment in the pre-promotion scale for which he would have been entitled for his six months service.
What is a Usual Increment?
When an employee retires on or after 31st May, the employee is not eligible for the annual increment of that year as the said employee retires before 1st December of that year. In this case, al the employee has completed 6 months of service in that year he/she is eligible for the annual increment. However, the employee gets a USUAL INCREMENT instead of an annual increment that is equal to the annual increment amount. If the employee retires before 31st May he/she has not completed 6 months of service in that year. So he/she is not eligible for the Usual Increment.
How we shall Add the Usual Increment in Promotion Cases?
Suppose an employee of BPS-17 gets a promotion on 18 Sep 2022 from BPS-17 to BPS-18 and he/she retired on 22 Sep 2022. In this case, we shall first add the Usual Increment in BPS-17 and then fix his/her pay in BPS-18 by allowing the employee to next above increment as well as premature increment in BPS-18.
You may also like: Usual Increment in the retiring year for the pensioners retired prior to 1998
Special Thanks: Mr. Zahid Khan
