Annual increment for government employees

• The Supreme Court has declared that government employees are entitled to receive their annual increment even if they retire the day after earning it.
• This decision came in response to an appeal by the state-owned Karnataka Power Transmission Corporation Ltd.
• The company argued that employees should not receive the increment if they are due to retire the next day. However, the court dismissed the appeal and stated that the annual increment is granted for good conduct and efficiency in the preceding year and is therefore earned by the employee.
• Retirement on the following day should not prevent an employee from receiving the benefit they have already earned.
• The court’s decision upheld the ruling of the division bench of the Karnataka High Court, which ordered KPTCL to grant one annual increment to the employees who had earned it on their last day of service.