Pension Minus Pay Formula at AIIMS Jodhpur- Rajasthan HC decision

Pension Minus Pay Formula at AIIMS Jodhpur- Rajasthan HC decision. On 12 June 2025, the Rajasthan High Court (Rajasthan HC) delivered a landmark judgment concerning the implementation of the pay minus pension formula on re-employed doctors at AIIMS Jodhpur. The court’s decision affirms statutory provisions while safeguarding retired doctors from unfair retrospective wage adjustments.

Dispute

Several re-employed doctors at AIIMS Jodhpur – appointed between 2018 and 2020 – were drawing both pensions and full salaries. After multiple directives from the Ministry of Health & Family Welfare, AIIMS Jodhpur began enforcing the pay minus pension adjustment in 2023. In a case filed before the Central Administrative Tribunal (CAT), the doctors challenged this move.

1. Statutory Basis: Pay Minus Pension Applies

  • According to the Rajasthan High Court, the Central Civil Services (Fixation of Pay of Re-employed Pensioners) Orders, 1986, the OM dated 1 May 2017 and regulation 33 of the AIIMS Regulations 1999 explicitly mandate that re-employed doctors’ pension must be deducted from their pay.
  • According to the court, it does not matter whether the pay minus pension clause was mentioned in advertisements or appointment letters. The law of the land prevails.

2. Prospective vs. Retrospective Application

  • Although the HC upheld the formula applicability, it noted AIIMS Jodhpur’s “lackadaisical attitude” had led to confusion
  • As a result, the court ruled that the deduction could only be made prospectively, and that it could not be applied retroactively

Regulations Clarified

Regulation / OrderKey Provision
AIIMS Act 1956 & Regulation 1999 (Reg 33)Defines retired persons in service as re-employed, mandating pay fixation as per rules
CCS Re-employment Orders 1986Mandates deduction of pension when fixing pay for re-employed pensioners

Court Observations

  • According to the bench, ignoring statutory provisions because of advertisement omissions would set a dangerous precedent.
  • Due to AIIMS Jodhpur’s institutional delay, the doctrine of natural justice was invoked: retrospective recovery was unjust.

Final Judgment Summary

  • Regulation 33 (1999) and CCS Orders 1986 apply to re-employed doctors at AIIMS Jodhpur.
  • Pay minus pension is a statutory requirement.
  • However, deductions are only applicable prospectively, starting with the date of the judgment.
  • It is not possible to recover backdated data; the issue has been resolved.

Why This Ruling Matters

  • Ensures that ex-government officials are not subject to arbitrary pay cuts as a result of institutional neglect.
  • Advocates for laws that ensure public servants receive fair compensation adjustments.
  • Reaffirms that employment notices cannot override statutory regulations.

Conclusion

While upholding the legality of the pay minus pension rule for re-employed doctors, the Rajasthan HC ensured administrative fairness. Despite statutory provisions retaining rightful priority, the verdict clarifies they must be applied fairly and without retrospective penalties. Retired professionals returning to public service will be reassured by this judgment.