Calculation of pension: Finance Division issues directive on annual increment

ISLAMABAD: The Finance Division has stated that a civil servant is entitled to the usual annual increment for the purpose of calculation of pension only on completion of six months service in the year of retirement irrespective of due date of 1st December following the completion of six months.

The Division has issued an office memorandum in this regard, while saying that it has been pointed out from various quarters that the civil servants who have been promoted from lower to higher post/ scale after completion of six months service in the year of retirement could not get the benefit of annual increment, for the purpose of calculation of pension, if they retire before 1st December following the promotion merely because they have not completed six months service after promotion in the higher post/ scale in the year of retirement.

It is clarified that in such cases, for the purpose of calculation of pension only, their pay in the higher post/ scale may be re-fixed on the basis of pay fixed in the lower post after allowing the benefit of annual increment in pre promotion scale for which he would have been entitled for his six months service.

The OM stated while referring to the Finance Division's OM No3(20)R-2/98 dated 08.09.1999 read with OM No3(20)R-2/98 dated 29.12.1999 and OM No 11(1)R-2/2007-590 dated 06.01.2015 which provide that a civil servant is entitled to the usual annual increment, for the purpose of calculation of pension only, on completion of six months service in the year of retirement irrespective of due date of 1st December following the completion of six months.”

Copyright Business Recorder, 2022