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Seventh Pay Commission Report: Pay Structure (Defence Forces Personnel) Chapter – 5.2

November 22, 2015

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Pay Structure (Defence Forces Personnel) Chapter 5.2 – 7th Pay Commission Report

Pay Structure (Defence Forces Personnel)

Chapter 5.2

5.2.1 The Defence Services in their Joint Services Memorandum have contended that the emoluments in the Defence Services should stand a fair comparison with what is available in the Civil Services, otherwise the Defence Services will be denied their legitimate share of the available talent pool.

5.2.2 The Commission has devised pay matrices for civil and defence forces personnel, after wide ranging feedback from multiple stakeholders. The common aspects of the two matrices and the unique elements in the defence pay matrix are outlined in the succeeding paragraphs.

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 Offices, 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.

5.2.7 Fitment: The starting point of a Sepoy (and equivalent), the entry level personnel in the defence forces, has been fixed in the Defence Pay Matrix at ₹21,700. The starting point in the existing pay structure is ₹8,460 for a Sepoy/equivalent. The fitment in the new matrix is essentially a multiple factor of 2.57. This multiple is the ratio of the new minimum pay arrived at by the Commission (₹18,000) and the existing minimum pay (₹7,000). 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.

5.2.8 Rationalisation: An ‘index of rationalisation’ has been applied while making enhancement of levels from Pay Band 1 to 2, 2 to 3 and 3 onwards on the premise that role, responsibility and accountability increases at each step in the hierarchy. At the existing PB-1, this index is 2.57, increasing to 2.62 for personnel in PB-2 and further to 2.67 from PB-3. Recognising the significantly higher degree of responsibility and accountability at levels corresponding to Senior Administrative Grade, the entry pay is recommended for enhancement by a multiple of 2.72. The same multiple is also being applied at the HAG and HAG+ levels. At the apex level the index applied is 2.81 and for the Service Chiefs/Cabinet Secretary the index has been fixed at 2.78.

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.

5.2.10 MACP: The Commission is not recommending an increase in the number of MACPs. For defence forces personnel this will continue to be administered at 8, 16 and 24 years as before. In the new pay matrix defence forces personnel will move to the immediate next pay level in the hierarchy. Fixation of pay will follow the same principle as that for a regular promotion in the pay matrix.

5.2.11 Equivalence in Pay Levels for Certain Levels: The starting pay level for officers at Group `A’ entry level is identical at ₹56,100 in the case of both civilian and defence service officers. Similarly the pay of the Major General and Joint Secretary and equivalent officers and those above [viz., Lieutenant General (in HAG, HAG+, Apex) and Chief of each defence service] has been kept identical with their civilian counterparts. Identical pay levels has been devised for JCO/ORs and their civilian counterparts corresponding to the existing pay bands and grade pay.

Defence Pay Matrix: Some Distinct Aspects

5.2.12 For defence forces personnel, there are two separate matrices, one for the Service Officers and JCO/ORs and another for the Military Nursing Officers. The existing ranks among Officers and JCO/ORs in the Defence Forces personnel has been kept in view while devising the matrix. There are a number of common strands in the Civil and Defence Pay Matrices, indeed the principles and philosophy on which they are based are identical. In the case of the pay matrix for Military Nursing Officers (MNS), the Commission has adopted an approach that blends elements of the principles and philosophy adopted in devising the pay matrices with the existing uniqueness in the pay structure of MNS officers. Some of the unique elements that merit mention in the defence Pay Matrix have been outlined below:

5.2.13  Commencement  of  Matrix:  The  commencement  of  the  Defence  Pay Matrix  for combatants corresponds to the existing GP 2000, which is the induction level for Sepoys and equivalent.

5.2.14 More Compact: The Pay Matrix designed for the defence forces personnel is more compact than the civil pay matrix keeping in view the number of levels, age and retirement profile of the service personnel. For example, the term of engagement of various ranks of JCOs/ORs are fixed and of shorter duration. Service Officers on the other hand are given time scale promotion upto the rank of Colonel and Equivalent and will therefore move, from one pay level to another, in accordance with the stipulated time frame.

5.2.15 Pay Levels Unique to Defence Forces Personnel: Pay levels corresponding to the existing GP 3400, GP 5700, GP 6100, GP 6600, GP 7600, GP 8000, GP 8400, GP 8700, GP 8900 and GP 9000 are unique to defence forces personnel. The minimum pay corresponding to each of these pay levels takes into account the normative residency period of the various ranks of officers.

5.2.16 The Commission emphasises that the pay structure designed by it for the defence forces personnel has been done keeping in view (a) some of the aspects in their rank structure unique to them and (b) pay structure is not intended to determine the status of the personnel vis-à-vis their counterparts on the civil side.

PAY MATRIX (DEFENCE FORCES PERSONNEL – EXCEPT MNS)

Matrix for Military Nursing Service (MNS) Officers

5.2.17 In the design of the pay matrix for Military Nursing Service (MNS) Officers, the Commission has kept in view the approach followed by previous Pay Commissions as well as historical and traditional relativities between the Armed Forces Officers and Military Nursing Service Officers. In particular the pay scales/grade pay based on the V and VI CPC Reports were kept in view.

Pay Structure of Defence Officers and Military Nursing Service Officers over time
Rank V CPC VI CPC
Army MNS Army MNS
Lieutenant 8250-300-10050

RP=Nil

8000-300-9500

RP=Nil

GP 5400 (PB-3)

MSP=₹6000

GP 5400 (PB-3)

MSP=₹4200

Captain 9600-300-11400

RP=₹400

9400-300-12100

RP=Nil

GP 6100

MSP=₹6000

GP 5700

MSP=₹4200

Major 11600-325-14850

RP=₹1200

11200-300-14800

RP=Nil

GP 6600

MSP=₹6000

GP 6100

MSP=₹4200

Lieutenant

Colonel

13500-400-17100

RP=₹1600

12800-300-15200

RP=Nil

GP 8000

MSP=₹6000

GP 6600

MSP=₹4200

Colonel 15100-450-17350

RP=₹2000

13400-300-15500

RP=Nil

GP 8700

MSP=₹6000

GP 7600

MSP=₹4200

Brigadier 16700-450-18050

RP=₹2400

14700-300-16200

RP=Nil

GP 8900

MSP=₹6000

GP 8400

MSP=₹4200

Major

General

18400-500-22400

RP   subsumed   in

Pay

16400-450-20000 GP 10000

MSP  subsumed  in

Pay

GP 9000

MSP subsumed in

Pay

RP– Rank Pay; MSP- Military Service Pay

Military Nursing Service (MNS) Officers Pay Matrix

5.2.18 Accordingly, the following Pay matrix for Military Nursing Service (MNS) Officers is recommended by the Commission:

Pay Matrix (MNS)

Pay Band 15600-39100 37400-67000
Grade Pay 5400 5700 6100 6600 7600 8400 9000
Level 10 10A 10B 11 12 12B 13B
1 56100 59000 64100 96300 109800 119700 129800
2 57800 60800 69900 99200 112900 123300 133700
3 59500 62600 72000 102200 116300 127000 137700
4 61300 64500 74200 105300 119800 130800 141800
5 63100 66400 76400 108500 123400 134700 146100
6 65000 68400 78700 111800 127100 138700 150500
7 67000 70500 81100 115200 130900 142900 155000
8 69000 72600 83500 118700 134800 147200 159700
9 71100 74800 86000 122300 138800 151600 164500
10 73200 77000 88600 126000 143000 156100 169400
11 75400 79300 91300 129800 147300 160800 174500
12 77700 81700 94000 133700 151700 165600 179700
13 80000 84200 96800 137700 156300 170600 185100
14 82400 86700 99700 141800 161000 175700 190700
15 84900 89300 102700 146100 165800 181000 196400
16 87400 92000 105800 150500 170800
17 90000 94800 109000 155000 175900
18 92700 97600 112300 159700
19 95500 100500 115700 164500
20 98400 103500 119200 169400
21 101400 106600 122800 174500
22 104400 109800 126500
23 107500 113100 130300
24 110700 116500 134200

5.2.19 As indicated earlier in the case of the Defence Pay Matrix, the Commission has adopted an approach that blends elements of the principles and philosophy adopted in devising the matrices for civil and defence forces personnel with the existing uniqueness in the pay structure of MNS officers.

5.2.20 Therefore while the minimum pay at the entry level for MNS officers is identical with their civil and defence counterparts, as is the application of the fitment in pay for officers migrating into the matrix, the Commission has had to adopt a different approach while determining minimum pay corresponding to the existing grade pays other than GP 5400 (PB-

3). In doing so, the Commission has adopted a formulation as under:

Minimum Pay for a Rank in MNS= (Minimum Pay for that Rank in Defence Pay Matrix) x

(Grade Pay of the Rank in MNS)/(Grade Pay of that Rank in the Services)

For example Minimum Pay for Colonel in MNS= (125,700) x (7600)/(8700)= ₹1,09,807. This has been approximated to ₹1,09,800 in the Matrix.

5.2.21 While this formulation has been adopted for all ranks of MNS officers, two exceptions have been made for purposes of rationalising the pay structure:

  1. In the case of Captains, the Commission has moderated the minimum pay level upwards to ₹59,00017, to avoid bunching of minimum pay of MNS Lieutenant and Captain.
  2. In the case of Brigadiers some moderation downwards from the figure arrived at by the formula (₹1,26,800) has been effected to provide suitable differential in the minimum of the pay level between Brigadier and Major General of MNS. Hence the mid-point of the minimum of the pay levels of Colonel and Major General viz., ₹1,19,700 has been taken as the minimum pay for the Brigadier of MNS.

Military Service Pay (MSP)

5.2.22 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 the four categories of Defence forces personnel at ₹15,500 for the Service Officers, ₹10,800 for Nursing Officers, ₹5,200 for JCO/ORs, and ₹3,600 for Non Combatants (Enrolled) in the Air Force per month. 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.

17 Without moderation upwards, by use of formula, the minimum pay for a Captain of MNS would be

₹57,280, which would be very close to ₹56,100 the minimum pay at the level of an MNS Lieutenant.

Annex to Chapter 5.2

Annex:  Levels as per the Pay Matrix
Existing Pay

Bands

Existing levels of

Grade Pay

Available for* New Levels
PB-1 1800 C 1
1900 C 2
2000 C,D 3
2400 C 4
2800 C,D 5
PB-2 3400 D 5A
4200 C,D 6
4600 C,D 7
4800 C,D 8
5400 C 9
PB-3 5400 C,D,M 10
5700 M 10A
6100 D 10B
6100 M 10B
6600 C,D,M 11
7600 C 12
PB-4 7600 M 12
8000 D 12A
8400 M 12B
8700 C 13
8700 D 13
8900 C 13A
8900 D 13A
9000 M 13B
10000 14
HAG 15
HAG+ 16
Apex 17
Cabinet Secretary, Defence Chiefs 18

*C: Civil; D: Defence; M: Military Nursing Service (MNS)


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