RESOLUTION No. 02 (E) No. 1(6)/2016/D (Pay/Services)

(TO BE PUBLISHED IN PART-I SECTION 3 OF THE GAZETTE OF INDIA EXTRAORDINARY)

GOVERNMENT OF INDIA

MINISTRY OF DEFENCE

New Delhi, the 5^th September, 2016

RESOLUTION

No. 02 (E)

No. 1(6)/2016/D (Pay/Services)

1.       The Seventh Central Pay Commission (CPC) was set up by the Government of India vide Ministry of Finance (Department of Expenditure) Resolution No.1/1/2013-E-III (A) dated 28^th February, 2014. The Commission submitted its report on 19^th November, 2015. The report covered among other things, matters relating to structure of emoluments, allowances, and conditions of service of Armed Forces personnel. Government has given careful consideration to the recommendations of the Commission relating to these matters in respect of Personnel Below Officer Rank (PBOR) of the Armed Forces and have decided that the recommendations of the Commission on the aforementioned matters in respect of these categories of Defence personnel shall be accepted as follows. Some of the major points in respect of Defence Personnel (PBOR) are as mentioned below: -           

(i)      Implementation of the revised pay structure will be w.e.f. 01.01.2016.

(ii)    Pay related Matter;

(a)     The existing system of Pay Band and Grade Pay has been replaced with separate Pay Matrices for both Defence and Military Nursing Services personnel.

(b)     Fixation of pay of each employee is the new Pay Matrix as on 01.01.2016 would be done by multiplying his/her basic pay by a factor of 2.57.

Note-1:     With regard to fixation of pay in the new Pay Matrix as on 01.01.2016, the existing pay (Pay in Pay Band plus Grade Pay) in the pre-revised structure as on 31.12.2015 shall be multiplied by a factor of 2.57. The figure so arrived at is to be located in the Level corresponding to employee’s Grade Pay in the new Pay Matrix. If a Cell identical with the figure so arrived at is available in the appropriate level, that Cell shall be the revised pay; otherwise the next higher cell in that Level shall be the revised pay of the employee.   

Note-2:     After fixation of pay in the appropriate Level as specified in Note-1 above, the subsequent increments shall be at the immediate next Cell in that Level.

(c)     General recommendations on pay recommended by the Commission have been accepted with the following exceptions in the Defence Pay Matrix, namely:

i.       The index of Rationalisation of Level 13 A (Brigadier) in Defence Pay Matrix may be revised upward from 2.57 to 2.67.   

ii.      Additional 3 stages in Level 12A (Lt Col), 3 stages in Level 13 (Colonel) and 2 stages in Level 13A (Brigadier) may be added appropriately in the Defence Pay Matrix.

(iii)   Increase in Military Service Pay (MSP) of Personnel Below Officer Rank (PBOR) from Rs 2000/- to Rs 5200/- p.m. MSP would be counted only for Dearness Allowance (DA) and Pension purposes;

(iv)    There would be two dates for grant of increments viz, 1^st January and 1^st July of every year, instead of existing date of 1^st July. However, an employ will be able to avail annual increment only on one of these two dates depending on the date of appointment, promotion, or grant of financial upgradation;

(v)     Recommendations on Allowances (except Dearness Allowance) would be referred to a Committee comprising Finance Secretary & Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Health & Family Welfare, Personnel and Training, Post and Chairman, Railway Board as Members. The Committee would submit its report within a period of 4 months. Till a final decision on Allowances is taken based on the recommendations of this Committee, all Allowances would continue to be paid as existing rates in existing pay structure, as if pay had not ben revised w.e.f 1.1.2016 i.e. status quo would be maintained;

(vi)    Arrears of Pay would be paid during the current financial year;

(vii)   Recommendations not relating to pay and allowances and other administrative issues specific to department/cadres/posts would be examined separately as per the Transaction of Business Rules/Allocation of Business Rules.

2.      Other instructions on Pay Fixation and increment not specifically covered in these instructions will be as in Government of India, Ministry of Finance (Department of Expenditure) Resolution No. 1-2/2016 – IC dated 25^th July, 2016. 

3.       The decisions taken by the Government accordingly on various recommendations of the Commission in respect of Personnel Below Officer Rank (PBOR) of Armed Forces are indicated in the statement at Annexure-I to this Resolution. New Pay Matrix for Personnel Below Officer Rank (PBOR) is at Annexure –II. 

Sd/-------------------------

(V Anandarajan)

Joint Secretary to the Government of India

ORDER

Ordered that the Resolution be Published in the Gazette of India Extraordinary.

Ordered also that a copy of the Resolution be communicated to: - 

1.       Army Headquarters.

2.      Naval Headquarters.  

3.       Air Force Headquarters.

4.      Pay Commission Cells of Army, Navy, and Air Force.

5.       Controller General of Defence Accounts and all CDAs.

6.      Director General of Audit, Defence Services. 

7.       Director of Public Relations, Ministry of Defence.

8.      Finance Division of Ministry of Defence.

9.      Implementation Cell of Ministry of Finance (Department of Expenditure)

10.     All Other concerned.

Sd/-----------------

(V Anandarajan)

Joint Secretary to the Government of India

ANNEXURE-I

STATEMENT SHOWING THE RECOMMENDATIONS OF THE VII CENTRAL PAY COMMISSION RELATED TO PERSONNEL BELOW OFFICER RANK (PBOR) OF THE ARMED FORCES AND GOVERNMENT DECISION THEREON (FIGURES REFERRED IN PARENTHESIS PERTAIN TO CHAPTER AND PARAGRAPH OF THE PAY COMMISSION REPORT)

Sl No	Recommendations of the VII CPC	Decision of the Government
1.	Fitment Factor: The Seventh CPC has recommended fitment in the pay band in the following manner: - “The fitment in the new pay matrix is essentially a multiple factor of 2.57. The multiple is the ratio of the new minimum pay arrived at by the Commission and the existing minimum pay. The fitment factor is being applied uniformly to all employees. It includes a factor of 2.25 to account for DA neutralisation, assuming that the rate of Dearness Allowance would be 125 percent at the time of implementation of the new pay as on 01.01.2016. The actual raise/fitment being recommended by the Commission is 14.29 percent. An identical fitment of 2.57 has also been applied to the existing rates of Military Service Pay (MSP) applicable to Defence forces personnel only.’ (Para 5.2.7)	Minimum Pay, Fitment Factor, Index of Rationalisation, Pay Matrices and general recommendations on pay recommended by the Commission in as much as it impacts PBORs accepted without any material alteration.
2	Rate of Increment: The rate of annual increment is being retained at 3 percent (Para 5.1.38)	There would be two dates for grant of increment viz. 1st January and 1st July of every year, instead of existing date of 1st July. However, an employee will be able to avail annual increment only on one of these two dates depending on the date of appointment, promotion, or grant of financial upgradation.
3	Military Service Pay for PBORs: The Defence forces personnel, in addition to their pay as per the Matrices above, will be entitled to payment of Military Service Pay for all ranks up to and inclusive of Brigadiers and their equivalents. The Commission recommends an MSP for Defence forces personnel at Rs 5,200 for JCOs/ORs. MSP will continue to be reckoned as Basic Pay for purposes of Dearness Allowance, as also in the computation of pension. Military Service Pay will however not be counted for purposes of House Rent  Allowance, Composite Transfer Grant and Annual Increment, (Para No. 5.2.22)	Rate of Military Service Pay (MSP) is accepted. However, MSP will be counted only for Dearness Allowance (DA) and Pension.
4	Group ‘X’ Pay: The Commission recommends: (a) X pay for JCOs/ORs in Group ‘X’ at Rs 6,200 per month: For all X trades which involve obtaining a qualification which is equivalent of a diploma recognised by AICTE. This amount is the difference in the minimum of the Pay level 6 (corresponding to Grade Pay of Rs 4200 in VI CPC),  and Pay Level 5 (corresponding to Grade Pay of Rs 2800 in VI CPC). (Para 6.2.88) (b) X Pay for JCOs/ORs in Group X at Rs 3, 600 per month: (standard fitment of 2.57 on the existing X pay of Rs 1,400) for those currently in X pay, but not having a technical qualification recognised by AICTE. (Para 6.2.88).	Accepted.
5.	Pay Scales of Honorary Commissioned Officers: The Commission, taking note of the existing framework of Honorary Commission recommends that the Junior Commissioned Officers on their promotion as Honorary Lieutenant or Honorary Captain shall be placed in the pay level 10 and pay level 10B respectively. They will, in addition be paid Military Service Pay of Rs 15, 500 per month on par with that payable to all the Commissioned officers. (Para 6.2.92).	Accepted.
6	Grant of Financial Upgradation under MACP to the DSC Personnel: Since Defence Security Corps personnel are personnel under the Army, they would also be permitted the benefit of MACP. However, this benefit should be limited to a total of three upgrades in the entire service career, both during regular employment and in the course of reemployment as Defence Security Corps personnel. As they are defence forces personnel the benefit of MACP would be extended to them after a period of eight years from their dat of reemployment, in case they do not get a promotion. (Para 6.2.98).	Accepted.
7	Pay Structure of Non-Combatant (Enrolled): The Commission recommends MSP for Non-Combatants (Enrolled) at the rate of 70 percent of combatants. Accordingly, the Commission recommends an enhancement of MSP for Non-Combatant (Enrolled) in the Air Force from the existing rate of Rs 1,000 per month to Rs 3,600 per month. (Para 6.2.100 & 6.2.101)	Accepted.

Pay Matrix (Defence Forces Personnel – except Military Nursing Service)

[Tables edited for compactness by Aerial View]

Pay Band	5200-20200			9300-34800					15600-39100
Grade Pay	2000	24000	2800	3400	4200	4600	4800	5400	5400	6100	6600
Level	3	4	5	5A	6	7	8	9	10	10B	11
1	21700	25500	29200	33300	35400	44900	47600	53100	56100	61300	69400
2	22400	26300	30100	34300	36500	46200	49000	54700	57800	63100	71500
3	23100	27100	31000	35300	37600	47600	50500	56300	59500	65000	73600
4	23800	27900	31900	36400	38700	49000	52000	58000	61300	67000	75800
5	24500	28700	32900	37500	39900	50500	53600	59700	63100	69000	78100
6	25200	29600	33900	38600	41100	52000	55200	61500	65000	71100	80400
7	26000	30500	34900	39800	42300	53600	56900	63300	67000	73200	82800
8	26800	31400	35900	41000	43600	55200	58600	65200	69000	75400	85300
9	27600	32300	37000	42200	44900	56900	60400	67200	71100	77700	87900
10	28400	33300	38100	43500	46200	58600	62200	69200	73100	80000	90500
11	29300	34300	39200	44800	47600	60400	64100	71300	75400	82400	93200
12	30200	35300	40400	46100	49000	61200	66000	73400	77700	84900	96000
13	31100	36400	41600	47500	50500	64100	68000	75600	80000	87400	98900
14	32000	37500	42800	48900	52000	66000	70000	77900	82400	90000	101900
15	33000	38600	44100	50400	53600	68000	72100	80200	84900	92700	105000
16	34000	39800	45400	51900	55200	70000	74300	82600	87400	95500	108200
17	35000	41000	46800	53500	56900	72100	76500	85100	90000	98400	111400
18	36100	42200	48200	55100	58600	74300	78800	87700	92700	101400	114700
19	37200	43500	49600	56800	60400	76500	81200	90300	95500	104400	118100
20	38300	44800	51100	58500	62200	78800	83600	93000	98400	107500	121600
21	39400	46100	52600	60300	64100	81200	86100	95800	101400	110700	125200
22	40600	47500	54200	62100	66000	83600	88700	98700	104400	114000	129000
23	41800	48900	55800	64000	68000	86100	91400	101700	107500	117400	132900
24	43100	50400	57500	65900	70000	88700	94100	104800	110700	120900	136900

Pay Matrix (Defence Forces Personnel) continued

Pay Band	37400-67000				67000-79000	75500-80000	80000	90000
Grade Pay	8000	8700	8900	10000
Level	12A	13	13A	14	15	16	17	18
1	116700	125700	139600	144200	182200	205400	225000	250000
2	120200	129500	143800	148500	187700	211600
3	123800	133400	148100	153000	193300	217900
4	127500	137400	152500	157600	199100	224100
5	131300	141500	157100	162300	205100
6	135200	145700	161800	167200	211300
7	139300	150100	166700	172200	217600
8	143500	154600	171700	177400	224100
9	147800	159200	176900	182700
10	152200	164000	182200	188200
11	156800	168900	187700	193800
12	161500	174000	193300	199600
13	166300	179200	199150	205600
14	171300	184600	205100	211800
15	176400	190100	211300	218200
16	181700	195800	217600
17	187200	201700
18	192800	207800
19	198600	214000
20	204600
21	210700
22
23
24

[ Please intimate any errors as this was typed in haste]