Pre-grant-in-aid service counts for notional pay fixation and pensionary benefits, but not salary arrears.

The petitioners, teaching and non-teaching employees of aided educational institutions, sought consideration of their representations and a direction to reckon service from their initial appointment, including service before their posts were admitted to grant-in-aid, for pay fixation, increments, seniority, pensionary and other service benefits.

They relied on the Karnataka High Court’s decision in W.A. No. 2476/2015 and connected matters, dated 24 July 2026.

The respondents accepted notice; the State submitted that the relief was governed by paragraph 61 of that appellate judgment.

Whether service rendered before a post’s admission to grant-in-aid must be reckoned for notional pay fixation and consequential service benefits.

Whether employees may claim salary arrears or other monetary benefits from the State for the pre-grant period.

The Court applied the clarification in paragraph 61 of W.A. No. 2476/2015 and connected matters and referred to Annexure I of the Rules, 1999.

Under that clarification, pre-grant service is to be counted for notional pay fixation as of the date the post is admitted to grant-in-aid and for consequential benefits, including pension and other service benefits. The management remains responsible for salary and other benefits during the non-grant period; employees cannot claim from the State salary arrears or other monetary benefits for that period.

The petitioners’ requested relief fell within the scope of the prior appellate judgment. Applying its paragraph 61, the Court distinguished between counting pre-grant service for notional fixation and consequential service benefits, on the one hand, and claiming payment from the State for the pre-grant period, on the other.

It therefore directed the relevant authorities to reckon service from the petitioners’ respective appointment dates for the permitted purposes, without extending the State’s liability to pre-grant salary arrears.

The authorities were directed to complete the consideration within six months.