Grant of one notional increment (as due on 1st July) for the pensionary benefits to those employees who had retired on 30th of June before drawing the same: Railway Board order dated 20.02.2026
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)
No. PC-VI/2024/Misc./04
New Delhi, Dated: 20.02.2026
The General Managers (P)/ Principal Financial Advisors,
All Zonal Railways and Production Units
Sub: Grant of benefit of one notional increment (as due on 1st July) for the pensionary benefits to those employees who had retired on 30th of June before drawing the same.
Ref: Board’s letter No. PC-VI/2020/CC/13 dated 21.05.2025.
Attention is invited to Board’s letter under reference on the subject cited above whereby instructions/clarifications regarding grant of benefit of notional increment were reiterated to all Zonal Railways/ Production Units in the light of the directions of the Hon’ble Supreme Court and the guidelines issued by DOP&T.
2. Subsequently, certain specific situations/circumstances which are not explicitly covered under the judgement of the Hon’ble Apex Court were brought to the notice of Board’s office by various Zonal Railways and clarification on the applicability of the instructions issued vide DOP&T’s O.Ms dated 14.10.2024 and 20.05.2025 regarding grant of notional increment in such cases was sought.
3. The matter was accordingly referred to the nodal department on the issue viz. DOP&T; who has apprised that such situations/circumstances are presently under examination in consultation with the nodal Departments, viz. Department of Expenditure, Department of Pension & Pensioners’ Welfare and Department of Legal Affairs. Any further development in this regard shall be intimated as and when received. Ministry of Railways is therefore, unable to take any unilateral decision in the matter in absence of the requisite clarification from DOP&T.
4. In the meantime, it has also been observed that a large number of representations are still being received from retired railway employees who appear to be covered under the orders of Hon’ble Supreme Court and the extant instructions issued by Board office in terms of DOP&T’s guidelines on notional increment.
5. In above context, all Zonal Railways/Production Units are hereby advised to prioritize the finalization of such cases of notional increment benefit. For this purpose, it is suggested that:
(i) A consolidated list of employees/pensioners who are eligible for grant of notional increment strictly in terms of the Hon’ble Supreme Court’s order and Board’s instructions may be prepared and preferably be published in the public domain so as to address the concerns and anxiety of the affected employees/pensioners; and
(ii) The actual revision of PPOs and consequential financial adjustments may thereafter be undertaken in a planned and phased manner, ensuring due diligence and adherence to extant rules and instructions.
6. The above systematic approach would bring clarity at the field level, reduce repetitive representations & multiple litigations on the issue of notional increment and also facilitate orderly implementation of the benefit wherever admissible.
(Sundeep Pal)
Executive Director Pay Commission
Railway Board
Tel. No. 011-47845117
Email add: sundeep.p[@]gov.in
4th floor, Room No. 7
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