On implementation of the 6th CPC recommendations , it was decided that 1st July of each year would be the uniform date of implementation of annual increment for all Central Government employees.Employees who are appointed after January 1st are not eligible for that year’s annual increment on July 1. They qualify for annual increment only the next year. The revised pay rules said that "If an employee is on leave or is
availing joining time on the 1st of July, the benefit of annual
increment in pay will be drawn only from the date on which he resumes
duty and not from the first of July. Each year, employees who retire in
the month of June are not given the annual increment of the year since
they do not report to work on 1st July. Only those employees who resume
duty on July 1st are eligible to receive the annual increment. Or, the
day they report back to work is taken as the date for implementing the
annual increment. Since there are no possibilities for the retired
employees to return to work, they are not considered as qualified to
receive the annual increment.
The revised pay rules states that only those who have been receiving the
same basic pay continuously for 6 months are considered as qualified
for annual increment. According to the another rule of qualification for
increment, the person should have complete one year in service after
receiving the annual increment. Therefore, despite being qualified,
these employees are denied their annual increment. There is an order that states that those who retire on July 1st should
complete the retirement formalities in the month of June. Instead of strictly looking into such technicalities, it would be a nice
gesture on the part of the Government to extend the benefits of annual
increment to those senior employees too who retire from service in the
month of June.
