Grant of notional Increment on 1st July/1st January for the purpose of calculating the pension : PCDA Circular No. 687 dated 25.06.2026
“हर काम देश के नाम”
रक्षा लेखा प्रधान नियंत्रक (पेंशन), द्रौपदीघाट
प्रयागराज 211014
Principal Controller of Defence Accounts (Pension)
Draupadi Ghat, Prayagraj – 211014
Circular No. 687
Dated: 25.06.2026
To,
The Officer-in-Charge
OROS/ROS
PCDA(O)/PAO(ORS)/HOOS
Subject:- Grant of notional increment on 1st July /1st January to the Armed Forces Personnel who are retiring/retired from Central Government service on 30th June/31st December respectively for the purpose of calculating the pension admissible to them-regarding.
Reference: This office circular No. 683 dated 18.08.2025.
Attention is invited towards the Gol, MoD, Department of Military Affairs letter No. 1(1)/2024/D(Pay/Services) dated 23rd December 2024 and even No. dated 23rd July 2025 vide which the provision contained in DoPT O.M. No. 19/116/2024-Pers.Pol.(Pay)(Pt) dated 14th October 2024 and 20th May 2025 were extended to allow the increment on 1st January/ 1st July to the Armed Forces Personnel who are retiring/retired a day before it became due i.e on 30th June /31st December.
2. The Hon’ble Supreme Court vide its orders dated 20.02.2025 issued following final directions, by way of an Interim Orders to prevent any further litigation and confusion.
(i). The judgement dated 11.04.2023 will be given effect to in case of third parties from the date of the judgement, that is, the pension by taking into account one increment will be payable on and after 01.05.2023. Enhanced pension for the period prior to 30.04.2023 will not be paid:
(ii). In case any retired employee filed an application for intervention/impleadment/ writ petition/ original application before the Hon’ble Courts, 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 filled.
The Hon’ble Supreme Court has decided that the directions referred at Para (ii) above will not apply to the retired government employees who filed a writ petition/ original application or an application for intervention before the Hon’ble Courts after the judgement in “Union of India & Anr. Vs M. Siddaraj”, as in such cases directions referred in Para (i) above will apply.
3. Hence, all OROs/ROs are requested to ensure notional increment claims which are initiated by filling only cut off date of notional increment i.e. 01.05.2023 as decided by the Hon’ble Supreme Court. It has been observed during the scrutiny of claim on SPARSH Portal that some OROs/ROs initiate the notional increment claim by filling the actual retirement date instead of financial effect from 01.05.2023 onwards.
The calculation of such erroneous arrears is not in accordance to Gol, MOD, DMA letter dated 23.12.2024 and the even No. dated 23.07.2025 due to wrong cut off date in data.
4. Moreover, it is also mentioned that notional increment applicable prior to 01.05.2023 in the case of Armed Forces Personnel as per 3(b) of Gol, DOPT letter dated 20.05.2025 who have filed writ petition and succeeded, the directions given in the said judgement will operate as res judicata and accordingly, an enhanced pension by taking one increment would have to be paid. In such case, the date of effect may be filled in accordance to Court Judgement enclosing copy of court judgement and Govt. Sanction issued by the competent authority for implementation of court case.
5. Accordingly, all affected cases on the above subject matter may be processed wherever applicable.
6. A copy of this circular is also available on the SPARSH Portal sparsh.defencepension.gov.in
7. Hindi version will follow.
No. Gts/Tech/0148-LXIX
Dated: 25.06.2026
(Akhilesh Garg)
DCDA (P)
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