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

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)