Ravinder Kumar Rohilla (Sr. Manager) 02 November 2011

Grant of annual increment upon retirement

Dear Sir,

I am an employee in a PSU under the Ministry of Commerce. My date of grant of annual increment is Ist April enery year. I am superannuating on 31.03.2012. Annual increment is granted after completion of 12 months service in a cadre, it is known to everybody. That means it is not granted in advance. My reuest for querry is that whether I shall not get the annual increment after completion of 12 months service on the night of superannuation date and then my company should retire me. In other words is there any judgement, enactment, notification from Govt. or authority in this matter that an employee will get his due increment and then he shall be retiring on the next day?

With kind regards

Ravinder Kumar Rohilla

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Kanaksinh P.Boda (Educationist/Lawyer) 02 November 2011

As a matter of practice, the day of retirement is not considered for paymet while disbursing the salary of a retiring person for the month in which he retires. So, he will recieve the salary for 29 days, if retires in a month inwhich the days are 30. So any increment that comes on the day of retirement is automatically left out due to this practice. Hence, in your case, you will be practically not in service on the day of retirement, i.e. 0n 31st March and you will draw you salary up to 30th March, thus not completing one year for entittlemen tof increment. This entry is to also reflect in the service book of employee before the Pension Order is drawn otherwise it becomes deductible from the Graduity.