Why is Annual Increment denied to employees retiring in June?

Why is Annual Increment denied to employees retiring in June?

Until 01.01.2006, the date of implementing employee’s annual increment was fixed on the basis of his/her date of appointment or promotion option. After the 6th CPC, 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.

Source: 90paisa.blogspot.in
[http://90paisa.blogspot.in/2014/05/why-is-annual-increment-denied-to.html]

Non-charging of annual increment in case of prolonged sickness followed by sad demise of the Railway employees - AIRF

Non-charging of annual increment in case of prolonged sickness followed by sad demise of the Railway employees - AIRF

All India Railwaymen's Federation
4,State Entry Road, New Delhi - 110055

No.AIRF/405(VI CPC)

Dated: March 15, 2014

The Secretary(E),
Railway Board,
New Delhi

Dear Sir,
Sub: Non-charging of annual increment in case of prolonged sickness followed by sad demise of the Railway employees

 As per provision under para 606(ii)(a), Chapter VI of the IREM Vol. I, the annual increment of the Railway employee is charged from the due date, i.e. presently from 1st July, only, when the employee resumes duty in case he/she is on leave or on sick list prior to that day.

It has been brought to the notice of AIRF that there are certain cases wherein the employee, due to prolonged sickness, followed by sad demise, could not resume duty on or after 1st July, i.e. due date of increment, and subsequently expired. Non-resumption of duty in such cases was beyond his/her own control because of serious ailment for which he/she was unable to resume duty and subsequently expired. In compliance of the above provision of the IREM, no annual increment from 1st July, i.e. due date, is charged in such cases and there is substantial cumulative loss at the time of settlement of such deceased employees.
 It may be appreciated that non-resumption of duty on the date of annual increment or thereafter due to prolonged sickness and subsequent death of the employee, being a hard case, should not debar him/her from charging of annual increment from the due date, as a result of which, he/she sustains cumulative financial loss, which is highly unfair and unjustified as well.

It is, therefore, urged upon that necessary clarification in this regard may be issued to all the Railway administrations to permit charging of annual increment in cases when the employee is unable to resume duty on the date of annual increment, i.e. 1st July at present and subsequently expires on this account, in the interest of justice, so that no undue financial loss is sustained by the bereaved family of the deceased employee on this account.

An early action in the matter shall be highly appreciated.

sd/-
(Shiva Gopal Mishra)
General Secretary

Source: AIRF