Pre-grant service counts for notional pay fixation and pensionary benefits, but earns no State-paid salary arrears.

The petitioners, teaching and non-teaching employees—some serving and others retired—from aided educational institutions sought a direction to count their service from their respective dates of appointment, including service before their posts were admitted to grant-in-aid, for pay fixation, pension, and other service benefits.

They relied on the Karnataka High Court Division Bench judgment in W.A. No. 2476/2015 and connected matters, dated 24 July 2026.

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

2. Whether employees are entitled to salary arrears or other monetary benefits from the State for the pre-grant period.

The Court applied the Division Bench’s ruling in W.A. No. 2476/2015 and connected matters, particularly paragraph 61, which confined the issue to reckoning non-grant service for pay fixation and consequential service benefits.

Under that ruling, non-grant service is counted for notional fixation of pay as on the date the post is admitted to grant-in-aid and for consequential benefits, including pension; the institution’s management remains liable for salary and benefits during the non-grant period, and employees cannot claim arrears or other monetary benefits from the State for that period.

The Court also referred to Annexure I of the Rules, 1999, as providing for the management’s liability until admission of the post to grant-in-aid.

The Court treated the petitioners’ claim as covered by the Division Bench’s ruling.

It relied on paragraph 61 to distinguish recognition of pre-grant service for notional and consequential benefits from a claim for pre-grant salary against the State.

Accordingly, it directed the concerned respondents to reckon the petitioners’ service from their respective appointment dates for notional pay fixation and calculation of pension and other service benefits.

The petition was allowed and disposed of. Respondents 1, 2, and 4 to 14 were directed to reckon the petitioners’ pre-grant service for notional pay fixation and consequential pension and other service benefits, and to complete the consideration within six months.