Lok Sabha Question No. 300 (STARRED), answered on 2017-08-04
Subject: Seventh Central Pay Commission
Ministry: DEFENCE
Asked by: PINAKI MISRA

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE

## LOK  SABHA

## STARRED QUESTION NO.300

TO BE ANSWERED ON THE 4 TH  AUGUST, 2017

## SEVENTH CENTRAL PAY COMMISSION

- *300.  SHRI  PINAKI MISRA:

Will the Minister of DEFENCE j{kk ea=h be pleased to state:

- (a) whether all the issues of core concerns raised by the defence forces with respect to their civilian counterparts as recommended by the Seventh Central Pay Commission and accepted by his Ministry have not been resolved completely;
- (b) if  so,  the  details  thereof  including  the  status  of  the  four  core  concerns  of  NonFunctional  Upgradation  (NFU),  NFU  pay  fixation,  Military  Service  Pay  (MSP)  and Common Pay Matrix for civilians and military and if not, the reasons therefor;
- (c) the corrective measures taken by the Government in this regard; and
- (d) the  time  by  which  the  Government  proposes  to  resolve  all  the  issues  and implement the amended recommendations in the matter?

## A    N    S    W    E    R

MINISTER OF DEFENCE                                            (SHRI ARUN JAITLEY)

j{kk ea=h

¼Jh v#.k tsVyh½

(a) to (d): A Statement is laid on the Table of the House.

*******

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  LOK SABHA STARRED QUESTION NO. 300 FOR ANSWER ON 4.8.2017

1. The 7 th Central Pay Commission (CPC) was tasked by the Government through a specific term of reference to specifically examine, review,  evolve  and  recommend  changes  that  were  considered  desirable and  feasible  with  respect  to,  among  others  the  emoluments  structure, concessions  and  facilities/benefits  in  cash  or  kind  as  well  as  retirement benefits of personnel belonging to the Defence Forces, keeping in view the historical and traditional parities, with due emphasis to aspects unique to these personnel.
2. The  recommendations of  7 th CPC in  respect  of  the  specific  term  of reference for Defence Forces personnel have since been accepted by the Government and Resolutions with respect to pay, allowances and pensions have been issued.
3. With respect to the emoluments structure, which has been accepted by the Government,  in recognition of aspects unique to them, the Defence Forces  Personnel  have  been  distinctively  placed  vis-à-vis  their  civilian counterparts in respect to the following:

(a)  To  compensate  for the  unique  aspects  of defence  service including  the  extreme  conditions  in  which  defence  personnel  are required to operate, Military Service Pay (MSP) has been provided for upto the level of Brigadier and equivalent.  The MSP has in fact been made admissible to Defence Forces personnel only in recognition of the special conditions of the service experienced by them which sets them  apart  from  civilian  employees.  The  MSP  rates  (per  month) effective  from  01.01.2016  have  been  fixed  by  the  Government  at ` 15,500/-  for  Officers, ` 10,800/-  for  Military  Nursing  Service  (MNS) Officers, ` 5,200/-  for  Junior  Commissioned  Officers  (JCOs)  /  Other Ranks  (OR)  and ` 3,600/-  for  Non  Combatants  (Enrolled)  in  the  Air Force.  As  a  result,  while  the  pay  on  initial  induction  of  a  civilian employee at the lowest pay level (in Level-1) is ` 18,000/-, the pay on initial induction of       a defence force personnel, who gets inducted at  their  lowest  pay  level  which  is  Level-3,inclusive  of  MSP  will  be ` 26,900/-.  Similarly,  while  the  pay  for  a  civilian  Officer  inducted  in Level-10  would  be ` 56,100/-,  the  pay  for  a  defence  service  officer inducted in level-10, inclusive of MSP will be ` 71,600/-.

(b) Providing a relatively advantageous pay outgo for defence forces personnel by way of a defined benefit pension scheme, which entails no contribution as distinct from a defined contribution scheme which entails a monthly contribution by each official as applies to all other Central Government personnel.

:  2  :

- (c)  Compensation  by  way  of  allowances  for  the  unique  Risk  and Hardship borne by defence personnel.
- (d)  Further benefits in cash and kind  admissible to Defence Service Personnel include (i) Free rations or Ration Money Allowance in lieu of free rations (ii) tax concessions available in Canteen Stores Depot (iii) Concession vouchers for travel in Railways and by Air.
4. Further,  the  Government,  has  provided  the  following  additional benefits to the Defence Services Officers: -
- i. The index of Rationalisation of Level 13A (Brigadier) in Defence Pay Matrix  has  been  revised  upward  from  2.57  to  2.67  vide  resolution dated 05.09.2016.
- ii. Additional  3  stages  in  Levels  12A  (Lt.  Col),  3  stages  in  Level  13 (Colonel)  and  2  stages  in  Level  13A  (Brigadier)  has  been  added appropriately in the  Defence Pay  Matrix vide resolution dated 05.09.2016.
- iii. Further, Index of Rationalisation (IOR) of Level 12A and 13 of Defence Pay Matrix has also been enhanced from 2.57 to 2.67 vide resolution dated 22.06.2017.
5. Further, vide Government's Resolution dated 28.06.2017, the Defence Pay Matrix [except Military Nursing Service (MNS)] which had 24 stages has been extended to 40 stages similar to the Civil Pay Matrix.
6. The  issue  of  Non-Functional  Upgradation  (NFU)  for  Officers  of  the Defence services is currently sub-judice.
- ******