Pre-Regularisation Service Counts for continuity in service & pension benefits

Judgment dated 8.9.2026 of the Supreme Court of India in Civil Appeal No.6865 of 2022 of Punjab School Education Board and another   Vs.  Satnam Singh and others

respondent-employees essentially raised two claims: first, that the service rendered by them prior to their regularization, while working on contract/ad hoc/daily-wage/work-charge basis, was liable to be counted as qualifying service for the purposes of retiral benefits; and second, since their services were regularized pursuant to the Government Policy dated 23.01.2001 and they were placed on regular service with effect from August 2004, they ought to be treated as falling within the old pension regime and not within the Defined Contributory Pension Scheme.

Here, too, the Single Judge and Division Bench had rightly held that the services by respondent-employees rendered on contract/ad hoc/daily wage basis prior to regularization must be computed as qualifying service for the purpose of retiral and pension benefits. The breaks in service were either ‘notional’ or artificial/administrative breaks, or precipitated by Court orders. They must be ignored and the service should be treated as continuous.

On a cumulative assessment of the material on record, therefore, we are satisfied that the decisions of the Courts below are legally sound and based on correct application of law to facts, and there is no illegality or infirmity that would warrant our interference in appeal. The respondent-employees were indeed regularized and are entitled to be treated as having entered Government service prior to 01.01.2004 and therefore fall under Tier II of the Defined Contributory Pension Scheme. They have the discretion to choose either the old GPF pension scheme or the new scheme, if they opt for it.