The Supreme Court addressed whether employees initially engaged on a contract, ad hoc, or daily-wage basis in the 1990s and subsequently regularized in 2004 are entitled to have their pre-regularization service counted as qualifying service for pension benefits under the old pension scheme. Dismissing the appeal filed by the Punjab School Education Board, the bench ruled that pension is a deferred wage for past services rendered, and artificial or administrative breaks in service must be ignored. Since the employees’ long-standing service commenced prior to the January 1, 2004 cutoff date for the new Defined Contributory Pension Scheme, they are eligible to be governed by the old pension regime and count their continuous service toward retiral benefits.
- Nature of Engagement: The respondent-employees were initially engaged as Clerks and Peons between 1993 and 1996 on a contract, ad hoc, or daily-wage basis.
- Voluntary Regularization: Following a High-Powered Committee review and the adoption of a government policy as a humanitarian measure, the appellant-Board regularized the employees against permanent vacant posts in August 2004.
- Pension Scheme Eligibility: The Supreme Court affirmed that because the employees entered continuous service prior to the introduction of the new Defined Contributory Pension Scheme on January 1, 2004, their pre-regularization service counts as qualifying service.
- Precedent and Social Welfare: Drawing on principles from S. Nakara v. Union of India and Harbans Lal v. State of Punjab, the Court reiterated that pension is not a bounty but a social welfare measure for past service.
- Final Ruling: The appeal of the Punjab School Education Board was dismissed, confirming that the regularized employees are entitled to exercise discretion to choose the old General Provident Fund (GPF) pension scheme.
2026 INSC 965
Punjab School Education Board and Another v. Satnam Singh and Others (D.O.J. 08.09.2026)




