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Clarification by Finance Department, Odisha on Notional Increment for Pension Calculation
Clarification on Notional Increment – Finance Department, Odisha
Issued by: Finance Department, Government of Odisha
📘 Reference: You can read the base order O.M. No.2392/F (22.01.2025) here:
👉 View O.M. 2392/F (PDF)
🔍 Summary of Clarification
👉 View O.M. 2392/F (PDF)
- The notional increment mentioned in FDOM No.2392/F dated 22.01.2025 will be counted only for:
- Pension
- Family Pension
- Commutation of Pension
- It will not be considered for DCRG (Death-cum-Retirement Gratuity) or other benefits.
- As per Finance Department Resolution No.22947/F dated 11.06.1974, an increment is deemed due from the first of the month it falls in, regardless of the actual anniversary of appointment or promotion.
- According to Point-3 under Rule-77 of the Odisha Service Code, the first increment on promotion can be drawn even if 12 months are not completed.
- Hence, a notional increment shall be admissible even when one full year is not completed since the last promotional increment before retirement.
- Example: An employee promoted on 26.07.2019 and retiring on 30.06.2020 shall get a notional increment on 01.07.2020, as per the above order.
Conclusion: Departments are instructed to apply this clarification when finalizing pension cases and related benefits.