Notional Increment for Pension – Employees Retiring 1 Day Before Annual Increment | Finance Dept Odisha OM No.7165 Dated 18.03.2026
Notional Increment for Pension – Employees Retiring 1 Day Before Annual Increment
Department: Finance Department, Government of Odisha
OM No: 7165 | Date: 18.03.2026
Published: 18 March 2026 Applicable to: All State Government employees retiring one day prior to annual increment date
The Government modifies para-5 of earlier Finance Department OM No.2392 dated 22.01.2025 (which granted notional increment for pension to employees retiring one day before increment date).
The benefit of **notional increment** is now payable **only from 30.07.2021** (date of Hon’ble High Court of Odisha judgment in Arun Kumar Biswal case). No arrears/enhanced pension shall be paid prior to 30.07.2021.
Key Modification in OM No.7165/18.03.2026
Modified para-5 reads as follows:
“5. The pension of such employees shall be payable on and after the date 30.07.2021 by considering one increment, on notional basis. Enhanced pension prior to 30.07.2021 shall not be paid.”
Background & Reason for Modification
- Earlier OM No.2392 dated 22.01.2025 extended the benefit retrospectively from 30.07.2021.
- Large number of representations received from employees retired before 30.07.2021 claiming benefit from their date of retirement.
- Government has now clarified that **no arrears/enhanced pension** shall be paid for period prior to 30.07.2021.
Important for Pensioners & DDOs:
- Pension revision (notional increment) effective **only from 30.07.2021** onwards.
- **No arrears** or enhanced pension for period before 30.07.2021.
- All pension sanctioning authorities/DDOs must strictly follow this clarification while processing pension cases.
- Incorrect payment of arrears may lead to recovery during audit/scrutiny.
📄 Official OM (PDF): View / Download
WhatsApp Telegram Facebook PDFFrequently Asked Questions (FAQ)
1. What is the new rule for notional increment in pension cases?
Notional increment for pension is now payable **only from 30.07.2021** (date of High Court judgment in Arun Kumar Biswal case). No enhanced pension or arrears before this date.
2. Which earlier OM is modified by this OM No.7165/18.03.2026?
Modifies para-5 of Finance Department OM No.2392 dated 22.01.2025.
3. Why was this modification made?
Large number of representations from employees retired before 30.07.2021 claiming benefit from their retirement date. Government clarified no arrears prior to judgment date.
4. Who is eligible for this notional increment benefit?
State Government employees who retired on superannuation **one day prior** to their scheduled date of annual increment.
5. Where can I download the official OM?
Download/view the full OM PDF from the link above.