HP High Court Slams Unjustifiable pro rata pension calculation

Psu Connect Date: 10-09-25

Shimla, September 10, 2025 — In a major development, the Himachal Pradesh High Court has taken a firm stance against the pro-rata calculation of pension, labeling the practice as "wholly unjustifiable". The court's strong observation came during a contempt of court case,

Ranjiv Paul & Ors. Vs. Sumita Dawra & Ors., where it found the respondents had disobeyed a previous judgment.

The court noted that the correct pension formula is legally prescribed by Parliament as:

Pensionable Salary x Pensionable Service/70. The judges stated that there is "no occasion" for respondents to calculate the pension of the petitioners on a pro-rata basis. Furthermore, the court pointed out that the petitioners, who fall under a category that has been "paying on the higher side of their wages," should not be subjected to this unjustifiable formula.

The respondents were given a ten-day period to fully comply with the judgment's mandate. If they fail to do so, they must appear in court to explain why they should not be punished for "intentionally and willfully" disobeying the court's order. The case is adjourned and will be heard again on September 23, 2025.

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