Bombay HC rules employees retiring before July 1 entitled to annual increment after 6 months service

The Bombay High Court has ruled that annual increment constitutes an earned benefit accruing from service already rendered. The court held that employees who complete six months or more of qualifying service before retirement are entitled to a notional annual increment for calculating pensionary and retiral benefits, even if their retirement occurs before the increment date.

The judgment clarifies that the timing of retirement relative to the annual increment date does not nullify an employee's entitlement to this benefit when the requisite service period has been completed.