MINISTRY OF DEFENCE

RESOLUTION

 

New Delhi, the 5th September, 2016

No. 01(E).— 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 28th February, 2014. The Commission submitted its report on 19th 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 Officers 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(Officers) 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 in 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 Defence Pay Matrix, namely:

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

3. The decisions taken by the Government accordingly on various recommendations of the Commission in respect of Officers of Armed Forces are indicated in the statement at Annexure-I to this Resolution.New Pay Matrix for Defence Service Officers is at Annexure-II and for MNS Officers is at Annexure-III.

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

V. ANANDARAJAN, Jt. Secy.

Authority: www.egazette.nic.in

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7th Pay Commission has introduced a separate Pay Matrix Table for Defence Forces Personnel. The commission has explained in its report that the unique table structure has been simplified so that each employee can find his or her place in the proposed Matrix. All the employees belonging to various services will proceed according to their respective service conditions by earning increment on the basis of merit.  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.

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 = Rs.15,600 + (2 x Rs.630) +Rs.6,100 = Rs.22,960.

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 Rs.21,700. The starting point in the existing pay structure is Rs.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 (Rs.18,000) and the existing minimum pay (Rs.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.