Modification of Level-12A and 13 of Defence Pay Matrix- issues regarding

No.1(27)/2017-D(Pay/Services)
Government of India
Ministry of Defence

Sena Bhawan, New Delhi
Dated, the 2nd July, 2018

Office Memorandum

Subject: Modification of Level-12A and 13 of Defence Pay Matrix – Issues regarding.

The undersigned is directed to invite attention to the Pay Matrix contained in Part A of the Schedule of the Army Officers Pay Rules, 2017; Air Force Officers Pay Rules, 2017 and Navy Officers Pay Regulations, 2017 as promulgated vide SRO Nos. 12(E), 13(E) and 14(E) respectively dated 03rd May, 2017, where the Level-12A starts at Rs.1,16,700 at Cell one and ends at Rs.2,10,700 at Cell twenty one and Level-13 of the Pay Matrix starts at Rs.125,700 at Cell one and ends at Rs.2,14,000 at Cell nineteen and to state that in terms of Army Officers Pay (Amendment) Rules, 2017; Air Force Officers Pay (Amendment) Rules, 2017 and Navy Officers Pay (Amendment) Regulations, 2017 promulgated vide SRO Nos.17(E), 18(E) and 19(E) respectively dated 06th July, 2017, the said Levels 12A and 13 of the Pay Matrix have been modified. The modified Level 12A starts at Rs.1,21,200 at Cell one and ends at Rs.2,12,400 at Cell twenty. The modified Level 13 starts at Rs.1,30,600 at Cell one and ends at Rs.2,15,900 at Cell eighteen.

2. The modified Levels 12A and 13 in terms of the Army Officers Pay (Amendment) Rules, 2017; Air Force Officers Pay (Amendment) Rules, 2017 and Navy Officers Pay (Amendment) Regulations, 2017 take effect from 1st January, 2016. Accordingly, the earlier Levels 12A and 13 of the Pay Matrix as contained in Army Officers Pay Rules, 2017; Air Force Officers Pay Rules, 2017 and Navy Officers Pay Regulations, 2017 notified on 03.05.2017 and effective from 1st January, 2016 have become non-existent ab-initio with the promulgation of the Army Officers Pay (Amendment) Rules, 2017; Air Force Officers Pay (Amendment) Rules, 2017 and Navy Officers Pay (Amendment) Regulations, 2017. The modified Levels 12A and 13 are an improvement on the earlier Levels 12A and 13 in as much as the earlier Levels 12 and 13 are based on the ‘Index of Rationalisation’ (IOR) of 2.57, whereas the modified Levels 12A and 13 are based on the IOR of 2.67. It is for this reason of improvement that the modified Level 12A begins at Rs. 1,21,200 and Level 13 begins at Rs. 1,30,600, as against the earlier Levels 12A and 13 which began at Rs 1,16,700 and Rs. 125,700 respectively.

3. Consequent upon the aforesaid modification of Level-12A and Level 13 in terms of the Army Officers Pay (Amendment) Rules, 2017; Air Force Officers Pay (Amendment) Rules, 2017 and Navy Officers Pay (Amendment) Regulations, 2017 effective from 01.01.2016, pay in respect of those who are entitled to Level-12A or Level-13 either from 01.01.2016 or from any date later than 01.01.2016, shall be re-fixed by the fitment factor of 2.57 as contained in Rule 7(1)(i) of Army Officers Pay Rules, 2017 and Air Force Officers Pay Rules, 2017 and Regulation 7(1)(i) of Navy Officers Pay Regulations, 2017 in the aforesaid respective modified Levels 12-A or 13 in supersession of the earlier pay fixation. The formula for fixation of pay based on the fitment factor of 2.57, as contained in the ibid Pay Rules/Pay Regulations, 2017 has not been modified by the aforesaid Pay (Amendment) Rules. The fitment factor of 2.57 is uniformly applicable for all employees for the purpose of fixation of pay in all the Levels of Pay Matrix. Some issues regarding re-fixation of pay and the decisions thereon are brought in the succeeding paragraphs for compliance.

Issue No. 1 – Whether pay in the Level-12A and 13 is to be fixed by multiplying by a factor of 2.57 or 2.67

4. Pay in the Levels-12A and 13 of the Pay Matrix, as provided for in the Army Officers Pay (Amendment) Rules, 2017; Air Force Officers Pay (Amendment) Rules, 2017 and Navy Officers Pay (Amendment) Regulations, 2017, shall continue to be fixed based on the fitment factor of 2.57 as already provided for in Rule 7(1) (i) of Army Officers Pay Rules, 2017 and Air Force Officers Pay Rules, 2017 and Regulation 7(1) (i) of Navy Officers Pay Regulations, 2017. In case pay has been fixed in the modified Levels-12A and 13 by way of fitment factor of 2.67, the same is contrary to the Rules and is liable to be rectified and excess amount recovered forthwith. For more clarification, Issue no.1 mentioned in Ministry of Finance OM No. 4-6/2017-IC/E-III(A) dated 28.09.2017 may be referred to.

Issue No. 2 Pay re-fixed in the modified Level-12A and 13 working out lower than the pay fixed in the earlier Level-12A and 13

5. Pay in respect of those, who are entitled to Levels 12A or 13 either from 1.1.2016 or from any date later than 1.1.2016, has to be re-fixed in the modified Level 12A or 13 and the pay as earlier fixed in the earlier Level 12A or 13 gets automatically rescinded. Therefore, pay, as fixed in the modified Level 12A or 13 in terms of Rule 7 of Army Officers Pay Rules, 2017 and Air Force Officers Pay Rules, 2017 and Regulation 7 of Navy Officers Pay Regulations, 2017 in case of those who were drawing pay in the pre-revised pay structure in PB-4 plus Grade Pay of Rs.8000 or Rs. 8700 as the case may be, as on 31.12.2015 or in terms of Rule/Regulation 12 thereof in case of those promoted to Levels 12A and 13 on or after 1.1.2016, shall now be the pay for all purposes.

6. It has been decided that if the pay re-fixed strictly as per Rule/Regulation 7 or Rule/Regulation 12, as the case may be, of the Army Officers Pay Rules, 2017; Air Force Officers Pay Rules, 2017 and Navy Officers Pay Regulations, 2017 in the Levels-12A and 13 based on the Pay Matrix contained in the Army Officers Pay (Amendment) Rules, 2017; Air Force Officers Pay (Amendment) Rules, 2017 and Navy Officers Pay (Amendment) Regulations, 2017 (as per the fitment factor of 2.57) happens to be lower than the pay as earlier fixed as per the said Rules (fitment factor of 2.57) in the earlier Levels-12A and 13, then while the pay as re-fixed shall be the pay as applicable to the concerned employee for all purposes, any recovery of over payment on account of such re-fixation during the period up to 31.7.2017, the month in which the Army Pay Officers (Amendment) Rules, 2017; Air Force Officers Pay (Amendment) Rules, 2017 and Navy Officers Pay (Amendment) Regulations, 2017 have been issued, shall be waived. For more clarification, Issue no. 2 mentioned in Ministry of Finance OM No. 4-6/2017-IC/E-III(A) dated 28.09.2017 may be referred to.

Issue No. 3 – Re-exercise of option for coming over to the Revised Pay structure in case of Level 12A and 13

7. It has been decided that since the modification of the Levels 12A and 13 as per Army Officers Pay (Amendment) Rules, 2017; Air Force Officers Pay (Amendment) Rules, 2017 and Navy Officers Pay (Amendment) Regulations, 2017 is a material change, the employees, who were entitled to Level 12A or 13 as on 1.1.2016 and who had already opted for the earlier Level 12A or 13 as per Rules 5 and 6 of the Army Officers Pay Rules, 2017; Air Force Officers Pay Rules, 2017 and Navy Officers Pay Regulations, 2017, shall be given an opportunity for re-exercise of their option there under. Such an option may be exercised within three months from the date of issue of these orders.

sd/-
(B.D. Barua)
Deputy Secretary to the Government of India

Source: https://mod.gov.in/

The post 7th CPC Pay Matrix: Modification of Level-12A and 13 of Defence Pay Matrix appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

“Index of rationalization (IOR) of level 12A & 13 of the Defence Pay Matrix has been enhanced from 2.57 to 2.67 for the entry level Pay…”

Message Regarding 7 CPC

1. “GoI, MoD has extended sanction of Operation Rhino for a further period of 3 months with effect from 15/06/2017 to 14/09/2017 or till the termination of Op Rhino whichever is earlier”. Units may publish Part II orders accordingly.

2. “Govt orders have been received vide SRO No 17(E) dated 06/07/2017 notified in Gazette of India No 14 dated 07/07/2017 and acted upon in Aug 2017. As per the orders, index of rationalization (IOR) of level 12A & 13 of the Defence Pay Matrix has been enhanced from 2.57 to 2.67 for the entry level Pay but the multiplication factor is retained as 2.57. In some cases pay fixed on 01/01/2016 as per revised Pay matrix would be less than that fixed earlier as per SRO 12(E) dated 03/05/2017, leading to recovery in August 2017 pay account. A few examples are cited at Annexure “A”.

Source: https://pcdaopune.gov.in/

The post Defence Pay Matrix enhanced from 2.57 to 2.67 for level 12A & 13 appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

MINISTRY OF FINANCE

(Department of Expenditure)

RESOLUTION

New Delhi, the 16th May, 2017

No. 1-2/2016-IC. Whereas, vide its Resolution No.1-2/2016-IC notified in the Gazette of India, dated the 25th July, 2016, the Government of India accepted the recommendations of the Seventh Central Pay Commission in respect of the categories of employees covered in the Terms of Reference contained in its earlier Resolution No.1/1/2013-E.III(A) dated the 28th February, 2014.

And, whereas, the Government has considered it necessary to make the following changes in the recommendations of the said Seventh Central Pay Commission in respect of the said categories of employees, namely:-

(1) The Defence Pay Matrix, (except Military Nursing Service (MNS)), which has 24 stages shall be extended to 40 stages similar to the Civil Pay Matrix;

(2) The Index of Rationalisation (IOR) of Level 12A and 13 of Defence Pay Matrix shall be enhanced from 2.57 to 2.67. The Defence Pay Matrix (except MNS) shall, accordingly, be revised;

(3) To rectify the factual errors appearing in Level 10B and Level-12 of the pay matrix of MNS and in view of the changes in the IOR in the Defence Pay Matrix, the first stage of corresponding Levels of Pay Matrix of MNS shall also change. Accordingly, the Pay Matrix (MNS) shall be revised;

(4) The IOR of Level-13 of Civil Pay Matrix shall also be enhanced from 2.57 to 2.67. Accordingly, the Civil Pay Matrix as contained in Annexure-1 mentioned in para 6 of the aforesaid Resolution dated the 25th July, 2016 shall be revised. The revised Civil Pay Matrix is at Appendix-1;

(5) The provision contained in para 13 of the aforesaid Resolution dated 25th July, 2016 shall be revised to the extent that the benefit of pay protection in the form of personal pay of officers posted on deputation under Central Staffing Scheme, as envisaged therein, shall be given effect from 1st January, 2016 instead of 25th July, 2016. Further, this benefit shall also be extended to officers from Services under Central Staffing Scheme, coming on deputation to Central Government, on posts not covered under Central Staffing Scheme.

ORDER

Ordered that this Resolution be published in the Gazette of India, Extraordinary.

Ordered that a copy of this Resolution be communicated to the Ministries/Departments of the Government of India, State Governments, Administrations of Union Territories and all other concerned.

R. K. CHATURVEDI, Jt. Secy.

The post 7th CPC Revised Civilian Pay Matrix : Gazettee Notification appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

There is a press note floating around on social media regarding certain decisions taken by the Cabinet related to pay and pensionary modalities related to the 7th Central Pay Commission (CPC). Though many have questioned its veracity, this is to confirm that it is absolutely a valid document and has been officially issued by the Ministry of Finance.

That said, let me run through some of the important decisions taken by the Cabinet, clarifications thereon and their impact. Please note that the new Pay Rules issued by the Ministry of Defence do not take into account the changes in the pay structure or removal of anomalies and these shall be incorporated through separate amendments in the rules issued on 03 May 2017.

Restoration of Percentage based Disability Pension Rates

The 7th CPC had recommended ‘flat/slab’ rates of disability pension for the defence services rather than the ones based upon ‘percentage of pay’. Civil disabled personnel were however retained on the percentage system as before. As stated earlier, frankly, I never expected this regressive 7th CPC recommendation to be accepted by the Government, but unfortunately it was. While recommending this aspect, the 7th CPC had also made unfounded and uncharitable remarks against disabled soldiers by casting aspersions on those who have incurred disabilities while in service which was discussed in detail by me earlier in my opeds, here and here. This resulted in a massive decrease after the 7th CPC resulting in a payout even lower than 6th CPC rates for almost all post-2016 retirees of all ranks and also for pre-2016 retirees of certain ranks. The arbitrariness of this decision becomes evident from the following chart at the apex levels:

Thankfully, the then Defence Minister, Mr Manohar Parrikar, fully understood the issue and took personal interest in getting the issue referred to an Anomaly Committee. The Defence Services HQ as well as the Ministry, and even civilian employee organisations, supported the resolution of this anomaly which now stands addressed and the Cabinet has decided to retain the old system of calculation on percentage basis, that is, 30% of pay shall remain the disability element for 100% disability. I however do hope that a protection clause is introduced for pre-2016 retirees of lower ranks who stood to gain from the slab rates.

Improvement in Pension calculation system for pre-2016 civil and defence retirees

The Cabinet has also accepted an improvement over and above the system of pension calculation which was finally effectuated after the 7th CPC. Rather than basing the pensionary calculations on the “Old Pension X 2.57” formula, an option would be provided to calculate the pension based upon the notional pay stage from which the employee had retired as opposed to the minimum of pay as was the system followed till the 6th CPC. Calculation of pension in this manner would definitely enhance the pension of civil pensioners and perhaps a small number of defence pensioners, who, in all probability would be provided the opportunity of choosing the most beneficial option, that is, the new formula, 2.57 multiplication formula or OROP rates. Contrary to popular perception, this does not exactly result in OROP for pre-2016 civil employees as is being projected, since while this is based on notional data, the military OROP is operated on live date of fresh retirees, moreover while this system is expected to be revised only after ten years, the military OROP as per the current scheme is meant to be revised after every five years.

Issuance of Pay Rules rather than Instructions on Pay

There were messages that the Chiefs of the Defence Services have been sidelined and downgraded since the earlier system of issuance of Special Army Instructions, Special Navy Instructions and Special Air Force Instructions (SAI/SNI/SAFI) has been discontinued and a new dispensation of ‘Pay Rules’ has been initiated. This seems to be the negative imagination of fertile minds. SAI/SNI/SAFI were never issued under the authority of the Chiefs of the Defence Services HQ but were always issued by the Ministry of Defence, that is, the Government of India. ‘Orders’ such as Army Orders (AO) etc were (and are) issued by the Defence Services HQ under the power of the Chiefs. The new Pay Rules have been promulgated under the authority of Article 309 of the Constitution of India and are statutory in character rather than being mere executive instructions like was the case till now. With this, the pay rules of the Defence Services are at par with the statutory pay rules of the civil services which are also issued under the authority of Article 309 of the Constitution of India.

Defence Pay Matrix to have 40 stages

The 7th CPC had recommended only 24 stages in the defence matrix while 40 stages were provided to civilians. This anomaly has been rectified and now the defence pay matrix shall also have 40 stages. This will particularly be helpful for JCOs towards the retiring years and will also beneficially affect their pension and other retiral benefits.

Multiplication factor of 2.67

This anomaly had been rectified earlier for Brigadiers and a multiplication factor of 2.67 had been applied for the said rank. Now the same benefit has also been extended to Lieutenant Colonels, Directors to Government of India and Colonels, that is, Levels 12A and 13 of the Pay Matrix.

Other Anomalies

There shall be pay protection for the amount of Military Service Pay (MSP) on promotion from the rank of Brigadier to Major General. It may be recalled that MSP is not entitled to ranks above the rank of Brigadier. No decision has been taken by the Government on the aspect of Non Functional Upgradation till now since the matter is being considered sub judice. On directions of the Supreme Court, the Government is re-considering the issue of NFU for Central Armed Police Forces for which a meeting was recently held. The issue is to be considered by the Government and the fresh decision is to be placed before the Supreme Court in August 2017. The most pertinent anomaly of enhancement of Military Service Pay, especially for JCOs, also remains pending along with other matters and probably these issues would be clearer after various anomaly committees submit their reports and a decision is taken thereafter by the Cabinet. The committee on allowances has already submitted its report which will now be examined by the Government. Unlike pay and pension which are admissible retrospectively from 01 January 2016, most freshly rationalized allowances shall only be admissible prospectively.

This is all I have to say at present, please DO NOT mail me individual queries on email or social media. You are free to discuss the above @ the comments section of this post.

Thank You.

Source: Maj Navdeep Blog

The post Clarifications and update on the Cabinet decisions on pay and pensionary issues emanating out of the 7th Central Pay Commission: By Maj Navdeep Singh appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

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:

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

Click to view the 7th cpc notification for defence personnel

The post 7th CPC Defence Pay Matrix Table in Gazette Notification appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

The Cabinet approved further improvements in the Defence Pay Matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Combined Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels.

Some other decisions impacting the employees including Defence & Combined Armed Police Forces (CAPF) personnel include :

• Gratuity ceiling enhanced from Rs. 10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 %.
• A common regime for payment of Ex-gratia lump sum compensation for civil and defence forces personnel payable to Next of Kin with the existing rates enhanced from Rs. 10-20 lakh to 25-45 lakh for different categories.
• Rates of Military Service Pay revised from Rs. 1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.
• Terminal gratuity equivalent of 10.5 months of reckonable emoluments for Short Service Commissioned Officers who will be allowed to exit Armed Forces any time between 7 and 10 years of service.
• Hospital Leave, Special Disability Leave and Sick Leave subsumed into a composite new Leave named ‘Work Related Illness and Injury Leave’ (WRIIL). Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.

The post Cabinet approved improvements in the Defence Pay Matrix in Some Levels appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

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.

The post Pay Structure for Defence Forces Personnel – Pay Matrix appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.