Why Is Military Service Pay Ignored & Other Issues - Updated

Forgetting Military Service Pay In a Predilection for Rank Pay & Other Issues

Mr Parrikar said. “The Service Chiefs know that I am using all the
strength at my command to find a way out. You must understand that I got the gazette notification announcing the 7th Pay Commission amended to make sure the military retains its edge over the Central Armed Police Forces. Such a step has never been taken (to amend a gazette notification),” he pointed out.

He asserted that at least three of the four major anomalies over which the Service HQs are perturbed will be taken care of very soon. They are: 1. The entry level pay suppression in the middle ranks; 2. Non-functional Upgrade (NFU) and 3. Enhancement of Military Service Pay (MSP) for JCOs.

- Courtesy BharatShakti.in

Justice A K Mathur, Chairman of the 7^th CPC wrote, “Shri D. K. Rai, a young officer from Accounts and Finance stream who had a deep insight into the financial matters especially, the defence. His knowledge about defence finance has been of great help to this Commission in determining the pay structure for the defence forces. He is a young man and holds a long career before him and his insight into the financial intricacies of the pay structure of the defence service will take him to great height. I wish him great success, a bright future awaits him (emphasis supplied).

- Courtesy Report of the 7^th CPC

Background

Like the lyrics of the song from Sound of Music, ‘let’s start at the very beginning, the very best place to start.’ No, not from A, B, C, but from MSP (Military Service Pay). By ignoring it for calculating the Defence Pay Matrix, due to some unexplained reason, its domain knowledge expert & IDAS officer and the 7^th CPC have inflicted the gravest injustice on the Armed (Defence) Forces.   

MSP related discrepancies in the Defence Forces Pay Matrix

SAI/SNI/SAFI 1/S/2008, 2/S/2008 and 3/S/2008 issued by MoD, with concurrence of Def (Fin) and MoF (Deptt of Expenditure) has the following definitions: -

3. (g) “Military Service Pay (MSP)” is as defined in the Entry at S No. 2 in Annexure – 2 Part – A of the Government of India Resolution No. 1 (30)/2008/D (Pay/Services) dated 30.08.2008 published in Gazette of India Extraordinary Part I, Section III vide SRO 1 (E) dated 30.08.2008 (hereinafter called Resolution). MSP will be treated as pay for all purposes except for computation of increments and determination of status. The financial benefit of MSP will be admissible from 01.09.2008. It will not count for fixation of pay at the time of promotion except in the case of in the case of promotion from Brigadier to Major General.

    

3. (h) (i) “Revised Pay Structure” in relation to rank/post specified in column of tables at Para 4 (a) below means the Pay Band, Grade Pay and the MSP (if any) specified in columns (5), (6), and (7) of the said tables unless a revised pay band and grade pay of pay scale is notified separately for that post.

 And

3. (j) “Revised emoluments” means the pay in the pay band plus the grade pay and MSP of the officer in the revised pay structure and includes the revised Non-Practicing Allowance, if any, admissible to him, in addition.  

          (Underlined by author)

          There are identical definitions for JCOs and ORs in SAI/SNI/SAFI 1/S/2008

Some ill-informed persons have espoused the Artificial Depression of Pay to the extent of Rank Pay (Contempt Petition (C) No. 328 of 2013 dismissed on 18 Aug 2015) without considering a more serious aspect of ignoring the MSP.

 

In other words the Entry Pay for the Defence Pay Matrix of the 7^th for all Ranks should, in the words of MoD issued SAI/SNI/SAFI, comprise the Pay in the Pay Band, the Grade Pay, and the MSP. Further, if MSP is given a notional value for fixation of the pay of an Air Vice Mshl (Maj Gen & RAdm) on promotion from Air Cmde (Brig & Cmde), then what is the provision that precluded including MSP for re-fixation in the Defence Pay matrix? 

Friedrich Nietzsche, the German philosopher wrote, “The most perfidious way of harming a cause consists of defending it deliberately with faulty arguments,” and domain knowledge expert has not paid heed to that. Why else would he either unintentionally or otherwise betray that (lack of) expertise by not informing the 7^th CPC of this fact from a Def (Fin) and MoF (Deptt of Exp) approved and MoD issued document that governed the Pay and Allowances of the Defence Forces?

     

An abbreviated table of the Entry Pay in the 6^th CPC  from SAI 2/S/2008 and 3/S/2008 is placed below for ready reference: - 

Rank (and equivalent)	Pay in the Pay Band	Grade Pay	Military Service Pay	Total
Fg Offr	15600	5400	6000	27000
Flt Lt	18600	6100	6000	30700
Sqn Ldr	23810	6600	6000	36410
Wg Cdr	38530	8000	6000	52530
Gp Capt	40890	8700	6000	55590
Air Cmde	43390	8900	6000	58290
AVM	44700	10000	6000 (notional)	60700

In a classic case of cherry picking, the domain knowledge expert of the IDAS in the 7^th CPC, decided to ignore Para 3 (g), (h) and (j) of the SAI/SNI/SAFI and taken only the Pay in the Pay Band and Grade Pay to determine fixation in the Defence Pay matrix as is evident from the extract of the relevant portion of the Report reproduced below: -

“General Approach to the Pay Matrices: Civil and Defence

5.2.3 Pay levels have been set out in a pay matrix, separately for civilian and defence forces personnel. The Commission has evolved a fresh approach by merging the grade pay and pay bands into distinct pay levels. The approach regarding the pay levels and pay matrix has been explained in Chapter 5.1. Some of the major points in the pay matrix which have a common bearing on civilian and defence forces personnel are highlighted below.

5.2.4 Pay Bands and Grade Pay: Pay Bands and Grade Pays have been dispensed with and the new functional levels have been arrived at by merging the Grade Pay in the Pay Band. All the existing levels have been subsumed in the new structure.

5.2.5 Entry Pay: The entry pay for various ranks of defence forces personnel, other than MNS Officers, has been arrived at on the same premise, as has been done in the case of civilian. As an illustration, entry pay for a Captain has been arrived at as follows:

Entry pay in existing pay band + (Residency Period for promotion to Captain from Lieutenant x annual increment) + grade pay of the rank of Captain = ₹15,600 + (2 x ₹630) + ₹6,100 = ₹22,960.

5.2.6 An exception to this approach has been made in the case of Brigadiers/equivalents where pay for the rank has been arrived at as per the fitment table notified by the Ministry of Defence through its Special Army Instructions of October 2008” (emphasis supplied). 

So, the actual figures in the Defence Pay Matrix, if MSP was included, should have been reading something like this: -

JCOs/ORs

	From SAI/SNI/SAFI of 2008					7th CPC report
Rank	Pay in the Pay Band	Grade Pay	Military Service Pay	Total	Multiply by RF	Entry Pay	Pay in the Matrix
AC	5200	2000	2000	9200	23600*	8460	21700
Cpl	7650	2400	2000	12050	31000	9910	25500
Sgt	9040	2800	2000	13840	35600	11360	29200
JWO	10520	4200	2000	16720	43000	13500	35400
WO	13320	4600	2000	19920	51200	17140	44900
MWO	14350	4800	2000	21150	54400	18150	47600

(* Close to what is demanded by the Unions and Associations of civilian employees.)

Officers (upto Maj Gen)

	From SAI/SNI/SAFI of 2008					7th CPC report
Rank	Pay in the Pay Band	Grade Pay	Military Service Pay	Total	Multiply by RF	Entry Pay	Pay in the Matrix
Fg Offr	15600	5400	6000	27000	72100	21000	56100
Flt Lt	18600	6100	6000	30700	82000	22960	61300
Sqn Ldr	23810	6600	6000	36410	97200	25980	69400
Wg Cdr	38530	8000	6000	52530	135000	45400	116700
Gp Capt	40890	8700	6000	55590	142900	48900	125700
Air Cmde	43390	8900	6000	58290	155600	52290	139600
AVM	44700	10000	6000 (notional)	60700	165100	53000	144200

Higher MSP for JCOs

          With its repeated emphasis on equity and justice (please read these two being emphasised by 7^th CPC in Chapter 10.2), it appears that the weakness in the alleged expertise has once again been exposed.

7^th CPC states that a common multiplication or rationalisation factor of 2.57 having been used, the MSP of JCOs and ORs has been increased from Rs 2000 pm to Rs 5200 pm. The ‘expert’ perhaps forgot to inform that both JCOs and equivalents are also Group ‘B’ Officers.

If the MNS officers, who are also Gp ‘B,’ are entitled to Rs 10800 as MSP, then the much stated equity and justice demands that the JCOs (who are combatants) should also be paid the same MSP as MNS officers, who are Gp ‘B’ officers.  That would be equity and justice, the reason adduced by 7^th CPC elsewhere in its report.     

Why Notional MSP for AVM and above is required

As Georg Hegel, another German philosopher, pointed out, ‘We learn from history that we never learn from history.” The domain knowledge expert in the 7^th CPC appears to have ignored that, again.

In the 6^th CPC dispensation with fixation tables prepared by O/o CGDA probably and vetted by IDAS officers of the CGDA and Def (Fin) and concurred by Deptt of Exp, MoF, the Pay band for Air Cmde was stipulated as Rs 37400-67000 with Grade Pay Rs 8900 and MSP Rs 6000. So at the top of the pay band (and there are 38 Air Cmde & equivalents today) the Air Cmde (and equivalent) today earns Rs 67000+8900+6000 = Rs 81900. This is higher than what an AVM (Rs 67000), Air Mshl (HAG+, Rs 75500-80000) or AOC-in-C (Apex scale, fixed Rs 80, 000) and their equivalents earn!      

          A cursory look at the Pay in the Pay Matrix for Air Cmde & equivalent reveals that his total remuneration in the 7^th CPC regime including MSP of Rs 15, 500 will be Rs 2, 05,000 whereas an AVM & equivalent will be paid Rs 1, 99, 000. Isn’t that turning on its head the principle that a senior officer must not be paid less than his junior? Just look at the table below: -

Rank	Brig/Cmde/ Air Cmde	Brig/Cmde/ Air Cmde Para 3 of SAI	Brig/Cmde/ Air Cmde with MSP of Rs 15500	Maj Gen/RAdm/AVM
Pay in Pay Band (PB)	43390	43390	43390	53000
Grade Pay (GP)	8900	8900	8900	10000
MSP	-	6000	-	-
Total	52290	6000	52290	63000
Level	13A	58290	13A	14
Increment/yr	3%	3%	3% of PB + GP	3%
Rationalisation	2.67	2.67	2.67	2.72
Index 1	139600	155600	155100	144200
2	143800		159300	148500
3	148100		163600	153000
4	152600		168100	157600
5	157100		172600	162300
6	161900		184600	167200
7	166700		182200	172200
8	171700		187200	177400
9	176900		192400	182700
10	182200		197700	188200
11	187600		203100	193800
12	193300		208800	199600
13	199100		214600	205600
14	205000		220500	211800
15	211200		226700	218200
16	217500		233000	-

Index of Rationalisation

7^th CPC Report states at 5.2.9, “As noted in Chapter 5.1, dealing with the Civilian pay matrix, marked increase was accorded to directors in the GP 8700 at the stage of implementation of the VI CPC Report. Accordingly in the matrix the rationalisation index applied at this level has been fixed at 2.57, lower than the index of 2.67 applied to existing PB-3 officers. A similar formulation has necessarily to be applied to the defence pay matrix since the Lieutenant Colonels also received a marked increase in their pay level, post VI CPC recommendations. Since the defence services have an additional level in the existing PB-4 and there is a common pay level for SAG level officers in Defence and Civil, the Commission has applied the rationalisation index of 2.57 also to the officers in the rank of Colonel and Brigadier and their equivalent” (emphasis supplied).

The rationalisation factor has been increased from 2.57 to 2.67 for Air Cmdes (Brigs). Therefore, as the Gp Capt (Colonel/Capt IN) and Air Cmde (Brig/Cmde) are clubbed together, equity would be ensured, and justice would deem to have been done, if the rationalisation factor of Gp Capt (Colonel/Capt IN) is also raised to 2.67.

Stagnation of JCOs/ORs

          The 7^th CPC has recommended continuation of Minimum Assured Career Progression (MACP) in three stages on completion of 8, 16, and 24 years of service or 8 years in one rank for ORs. This and the 24 indices are supposedly adequate to fend off the looming threat of stagnation. But fixated with lesser indices for Lt Cols, Cols and Brigs, the spotlight has moved away from the stagnation of JCOs and ORs. There are certain trades that are later entrant and start directly from the rank of Sgts (Hav & Petty Officers) and not promoted from Corporal (Cpl) on completion of 13 years of service. They go on to serve up to 57 years of age. For them, the 24 indices (stages) in the Defence Pay Matrix are inadequate, will ensure that they will stagnate in the ranks of JWO/Nb Sub/CPO, WO/Sub/MCPO-II, and MWO/Sub Maj/MCPO-I.    

          So in the deafening clamour for removal of stagnation for Lt Cols, Cols and Brigs (since corrected by addition or 3, 3, and 2 indices (stages), will there be a request to the Govt to increase the indices (stages) to at least 36 indices (stages) for JCOs?

Notional NFU

          Any Govt employee or officer (civilian or Armed Forces) cannot draw pay lower than his junior, right? Not in the 7^th CPC’s Pay Matrix for Civilians!

For a living example, with NFU, a Org Gp ‘A’ MES officer who is not a CWE or a CE in Level 13A (Grade Pay Rs 8900) has been granted a Grade Pay of Rs 10, 000 with the result that his emoluments in the Civil Pay matrix of 7^th CPC will need to be reckoned in Level 14 i.e equivalent to that of a Joint Secretary/AVM.

          Therefore, again in the interest of equity and justice, there is an imperative for a notional, if not actual, NFU for a correct transition from the 6^th CPC pay band and Grade pay for Wg Cdr/Lt Col/Cdr from the 20 years of service and above, if his course-mates have been considered and promoted to Gp Capt/Col/Capt IN in the 16^th year and he has exhausted his three chances. In the present form, of not granting even a notional NFU, a passed over Wg Cdr/Lt Col/Cdr is poorer by about Rs 5500 p.m in comparison with a Gp A civilian officer with similar number of years of service.

In Conclusion

Perhaps that immense faith in the domain knowledge expertise of the IDAS officer appears to have clouded the eagle eyes of the Chairman, and Shri Vivek Rae, Member 7^th CPC when it came to reading the above quoted SAI/SNI/SAFI. If Shri Rae could quote chapter and verse and an Honourable Supreme Court ruling in support of his parent service, the IAS, how did he miss reading the SAIs/SNIs/SAFIs? Does that now bring attention to the fact that Armed Forces need to be represented not only in the CPC but also in the Anomalies Committees as MoD’s officers have proved their lack of true domain knowledge!

P.S:  As IDAS has been trying to get rid of the Accounts Branch of the IAF and Lt Gen Shekatkar Committee, (without an Air Force member?), has asked the IAF/Accounts Branch to justify its existence, one can imagine the fate of the Armed Forces.

Again, for equity, justice and respecting traditions of Service, I hope the Lt Gen will also peruse the entrance educational qualifications. Entry into the IAF’s Accounts branch requires applicant to have B.Com. from a Recognized University with minimum 60% marks (aggregate, all papers put together) or PG Degree (M.Com)/CA/ICWA from a Recognized University with minimum 50% aggregate marks (all papers put together) and whereas for IDAS a graduate degree in any subject will do (emphasis supplied). 

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