Introduction

Welcome to your trusted portal for Central Government Employees in India. On July 1, 2026, the Bharat Sanchar Nigam Limited (BSNL) Corporate Office released a crucial update regarding the grant of a notional increment for Family Pension calculations. This circular is based on a preceding Office Memorandum (O.M.) issued by the Department of Telecommunications (DoT) on June 17, 2026. It addresses a widely discussed question among pensioners: Is the notional increment provided to employees retiring on June 30th or December 31st applicable when calculating or revising a Family Pension?

Key Highlights at a Glance

Detailed Summary of the Directives

The DoT recently reviewed the rules around notional increments in consultation with the Department of Personnel & Training (DoP&T). Earlier DoP&T memorandums (dated 14.10.2024 and 20.05.2025) allowed the grant of one notional increment to Central Government employees retiring on June 30 or December 31, strictly complying with Hon'ble Supreme Court orders to facilitate the calculation of their regular pension.

However, the authorities have now explicitly clarified that these provisions were narrowly drafted to align solely with the Supreme Court's mandate, avoiding undue financial implications. Because Family Pension operates under its own distinct statutory framework—Rule 50 of the CCS (Pension) Rules, 2021—it does not qualify for this specific increment benefit.

Important Points to Remember

• The notional increment granted on January 1st or July 1st is only admissible for calculating the standard pension.
• This benefit shall not be extended for the fixation or revision of Family Pensions.
• Family Pension is recognized as a separate, distinct statutory benefit governed under Rule 50 of the CCS (Pension) Rules, 2021.
• Neither the Hon'ble Supreme Court's orders nor the referenced DoP&T memorandums contain any clause permitting the use of this increment for other pensionary benefits.
• All BSNL Circles, Units, and CCAs/Pr. CCAs are officially directed to regulate all pension cases in strict accordance with this clarification.

Conclusion

To summarize, these official communications from DoT and BSNL put an end to the confusion regarding pensioner benefits. While the notional increment remains a valuable benefit for standard pension calculations, it strictly does not apply to Family Pensions. We recommend that all Central Government Employees and pensioners keep this in mind during their retirement planning. Stay tuned to our blog for more fast, accurate, and simplified updates on your service matters!