The Department of Telecommunications (DoT) and BSNL Corporate Office have issued critical clarifications regarding the applicability of the highly discussed “Notional Increment” for pensioners. In a fresh circular issued by BSNL on July 1, 2026 (circulating the DoT directive dated June 17, 2026), the government has explicitly ruled out the extension of notional increment benefits for the fixation or revision of Family Pension.
This joint clarification puts an end to ongoing administrative doubts across various telecom circles and accounting units regarding whether family beneficiaries can claim a revised matrix step-up.
The Background: Why Notional Increment Was Granted
Following historic orders from the Hon’ble Supreme Court, the Department of Personnel and Training (DoPT) had originally issued mandates (via O.Ms dated 14.10.2024 and 20.05.2025) allowing a single notional increment. This benefit was designed specifically for Central Government employees who technically completed a full year of service but retired on 30th June or 31st December—just one day before the official increment dates of 1st July or 1st January. The increment was granted purely to ensure their final regular pension calculations reflected their full year of service.
Why Family Pension is Excluded from the Benefit
In response to queries raised by the Controller General of Communication Accounts, DoT examined the legal framework closely in consultation with DoPT. The official directives highlight two major reasons for excluding family pensions:
- Strict Adherence to Supreme Court Limits: DoPT noted that during the drafting of the original implementation orders, due care was taken to include only what the Supreme Court specifically ordered. Expanding the scope beyond regular retirement pensions could lead to serious legal ramifications and unintended financial implications for the exchequer.
- A Distinct Statutory Benefit: Family Pension is recognized as a separate, distinct statutory benefit governed directly under Rule 50 of the CCS (Pension) Rules, 2021. Neither the Supreme Court judgments nor the past guiding office memorandums feature any text extending this specific framework to family layouts.
Final Orders to Units
The fresh orders confirm that the grant of a notional increment shall be reckoned solely for the purpose of calculating the primary pension admissible to a retiring official. It cannot be utilized to alter or compute other pensionary benefits or family payouts.
All Controllers of Communication Accounts (CCAs), Principal CCAs, and BSNL Heads of Circles have been directed to strictly regulate all pending and future settlement cases in accordance with this clarified legal position.
BSNL Corporate Office Circular
BSNL Corporate Office
Pension Section
5th Floor, Bharat Sanchar Bhawan
H. C. Mathur Lane
New Delhi – 110001.
eFile No. BSNLCO-A/12(17)/3/2021-ESTAB
Date: 01.07.2026
To,
All Heads of Circles/Units
Bharat Sanchar Nigam Limited.
Subject: Grant of notional increment in Family Pension – reg.
Sir/Madam,
I am directed to forward herewith a copy of DoT O.M. No. 40-05/2026-Pen(T) dated 17.06.2026 (copy enclosed) regarding grant of notional increment for Family Pension.
2. DoT, in consultation with DoP&T, has clarified that the instructions issued vide DoPT O.Ms. dated 14.10.2024 and 20.05.2025 and DoT O.M. dated 26.05.2025 were issued for grant of one notional increment for the purpose of calculation/revision of pension. It has further been clarified that no separate instructions/clarification have been issued regarding extension of the benefit of notional increment for calculation of Family Pension.
3. DoT has further clarified that the benefit of notional increment granted in terms of DoPT O.Ms. dated 14.10.2024 and 20.05.2025 and DoT O.M. dated 26.05.2025 is admissible only for calculation/revision of pension and shall not be extended for fixation/revision of Family Pension.
4. All Circles/Units are requested to regulate such cases in accordance with the aforesaid instructions/ clarification issued by DoT.
This issues with the approval of the Competent Authority.
Yours faithfully,
(Sudhansu Shekhar Ray)
AGM (Estt-I)
Tel. No. 23037477
Enclosure: As above.
Copy to:
- PPS/PS to CMD/Dir(HR)/Dir(Ent.)/Dir(CFA)/Dir(CM)/Dir(F), BSNL Board.
- All PGMs/Sr.GMs/GMs in BSNL CO.
- DDG (Estt.), DoT.
- BSNL CO Intranet Portal.
- Guard File. Department of Telecommunications Office Memorandum
Department of Telecommunications Office Memorandum
No. 40-05/2026-Pen(T)
Government of India
Ministry of Communications
Department of Telecommunications
(Pension Section)
Room No. 514, Sanchar Bhawan,
20, Ashoka Road, New Delhi-110001
Date: 17-06-2026
To
The Controller General of Communication Accounts,
NICF campus, Ghitorni
New Delhi-110047.
Subject: Grant of Notional Increment in Family Pension – reg.
Sir,
Kindly refer to your Office letter No.13-118/2025-26/P&IT/855 dated 20.01.2026 regarding applicability of notional increment for calculation of family pension in cases covered under DoPT O.Ms. dated 14.10.2024 and 20.05.2025.
2. The matter has been examined in consultation with Department of Personnel & Training (DoP&T). DoP&T has informed that the instructions issued vide O.Ms. dated 14.10.2024 and 20.05.2025 were issued in compliance with the Orders of the Hon’ble Supreme Court relating to grant of one notional increment to Central Government employees retiring on 30th June/31st December for the purpose of calculation of pension.
3. DoPT has further clarified that while issuing these instructions due care was taken not to include any provisions therein which did not find place in the Orders of the Hon’ble Supreme Court keeping in view the position that inclusion of such provisions could have serious legal ramifications and undue financial implications. Moreover, no separate instructions/clarification have been issued regarding extension of the benefit of notional increment for calculation of Family Pension.
4. Attention is also invited to Para-6 of DoPT O.M. dated 20.05.2025 and Para-8 of DoT O.M. No. 38-66/2024-Pen (T) (1) dated 26.05.2025, wherein it has been stipulated that the grant of notional increment on 1st January/1st July shall be reckoned only for the purpose of calculating the pension admissible and not for the purpose of calculation of other pensionary benefits.
5. Family Pension is a distinct statutory benefit governed under Rule 50 of the CCS (Pension) Rules, 2021. Neither the Hon’ble Supreme Court’s Orders nor the DoPT O.Ms. dated 14.10.2024 and 20.05.2025 contain any provision extending the benefit of notional increment for fixation or revision of Family Pension.
6. In view of the provisions contained in the aforesaid O.Ms. and the clarification furnished by DoPT, it is clarified that the benefit of notional increment granted in terms of DoPT O.Ms. dated 14.10.2024 and 20.05.2025 and DoT OM dated 26.05.2025 is admissible only for calculation/revision of pension and shall not be extended for fixation/revision of Family Pension.
7. Accordingly, all CCAs/Pr. CCAs may be advised to regulate such cases in accordance with the above position.
This issues with the approval of Competent Authority.
(Kuldeep Kumar)
Under Secretary to Govt. of India
Tel. No.: 011-23036073
Copy to:
- All CCAs/Pr.CCAs
- Sr. DDG(Pers.)/ DDG(E&T)/DDG(C&A)/JS(A)
- CMD BSNL
- CMD MTNL
- DG(T)
- DDG (Accounts), DOT
Follow us on WhatsApp, Telegram, Twitter and Facebook for all latest updates
