ADVISORY NO.

Dated:-26.04.2022

O/o PCDA(O) Pune, Public Relation office PRO

Subject:- Elements to be taken into account for the purpose of Encashment of leave as per 7th CPC order: MSP regarding

Your kind attention is invited towards the provisions of Rule 5(2) (iii) of SRO 12(E) applicable for Pay Rules for Army Officers-2017 for 7th CPC order which categorically stipulates that Military Service Pay (MSP) shall be counted as Pay for the purpose of computation of Dearness Allowance and Pension.

Thereafter, MoD, New Delhi vide their ID No. 1((1)2018/D(Pay /Services) dated 05.06.2020 has intimated that the matter has since been examined in close consultation with Ministry of Finance and Ministry of Finance has not agreed to the MoD’s proposal regarding counting of MSP for the purpose of Leave Encashment to Defence Personnel.

Accordingly, leave encashment is being calculated on the basis of Basic Pay, DA and NPA (where ever applicable), Military Service Pay (MSP) is not considered as an integral element for calculation of leave encashment.

This is for your kind information please.

This is issued with kind approval of PCDA (O), Pune.

Regards,
Jai Hind

Encl: As above

(Smt. Arati Ray Chaudhury, IDAS)
ACDA & PRO

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Our Soldiers Protect Our Borders in Tough Conditions – FM

The issue of One Rank One Pension (OROP) has been resolved and the Government also announced substantial hike in the Military Service Pay (MSP) of all service personnel and special allowances given to Naval and Air Force personnel deployed in high risk duties.

Ministry of Finance

Defence budget hiked to Rs. 3,05,296 crore

Rs. 3,05,296 crore have been provided in the Budget Estimates for 2019-20, compared to Rs. 2,82,733 crore provided in 2018-19 Budget Estimates. The figures were revised to Rs. 2,85,423 crore in the Revised Estimates of 2018-19. While presenting the Interim Budget 2019-20 in Parliament today the Union Minister for Finance, Corporate Affairs, Railways and Coal Sh. Piyush Goyal said “Our Defence Budget will be crossing Rs.3,00,000 crore for the first time in 2019-20. For securing our borders and to maintain preparedness of the highest order, if necessary, additional funds would be provided.”

On the issue of strengthening Defence and National Security, the Interim Budget 2019-20 states that our soldiers protect our borders in tough conditions and they are our pride and honour. The Finance Minister Sh. Goyal said that due care has been taken of their honour. He said that the issue of One Rank One Pension (OROP) which was pending for the last forty years has been resolved.

He said “The previous Governments announced it in three budgets but sanctioned a mere Rs.500 crore in 2014-15 Interim Budget; in contrast we have already disbursed over Rs.35,000 crore after implementing the Scheme in its’ true spirit. The Government also announced substantial hike in the Military Service Pay (MSP) of all service personnel and special allowances given to Naval and Air Force personnel deployed in high risk duties.”

Source: PIB

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31 DEC 2018

Taking note of the rigours of military life, the 6th Central Pay Commission (CPC) had recommended an additional, separate element of Pay for the Defence Forces called Military Service Pay (MSP) which the CPC intended would also maintain the edge enjoyed by the Defence Forces over the civilian scales. The Commission was of the view that the rate of MSP as a percentage of the existing pay has to be maintained in case of officers (up to the level of Brigadier / equivalent) as well as PBORs because the difficulties faced in field situations by both these categories are similar.

The 7th Central Pay Commission (CPC) had considered all aspects with regard to applicability of MSP including the rates while making its recommendations. This was done after considering the views of the Services in the matter. The 7th CPC has consciously decided not to create additional categories of personnel for the grant of MSP or to disturb the slab rates for the four categories for which it is being paid up to the level of Brigadiers. The Government after carefully considering the recommendations of the 7th CPC in respect of MSP has accepted and notified the same.

Besides MSP, Service personnel are entitled to several other allowances such as High Altitude Allowance, Field Area / Modified Field Area Allowance, Counter Insurgency Allowance etc which are paid based on risks and hardships involved at a location / in an operation.

Engine-wise capacity and interval in years allowed as regards vehicle PURCHASE for officers and jawans:

This information was given by Raksha Rajya Mantri Dr. Subhash Bhamre in a written reply to Shri Vishambhar Prasad Nishad and others in Rajya Sabha today.

PIB

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In a written reply to a question regarding Military Service Pay in Parliament on 26.12.2018, the Minister of State for Defence Shri Subhash Bhamre said that the MSP was raised by the identical fitment of 2.57.

We reproduced the answer and given below for your information…

“Taking note of the rigours of military life, the VI Central Pay Commission (CPC) had recommended an additional, separate element of pay for the Defence Forces called Military Service Pay (MSP), which the CPC intended would also maintain the edge enjoyed by the Defence Forces over the civilian scales.

The VII CPC has consciously decided not to create additional categories of personnel for the grant of MSP or to disturb the slab rates for the four categories for which it is being paid up to the level of Brigadiers. This was done after considering the views of the Services in the matter. MSP was raised by the identical fitment of 2.57 which was applied for pay structure approved by the VI CPC. The recommendations of the VII CPC were accepted by the Government.

Government has recently approved a proposal to establish Armed Forces Special Operations Division which is designed as a tri Services organisation.”

High Court Direction on MSP

On 12th March 2018, question raised by a member in Parliament related to MSP. Whether Government is considering to grant Military Service Pay (MSP) equally to all ranks in the light of Hon’ble High Court’s direction in writ Petition No. 6607/2017 of ‘Voice of Ex-Servicemen Society’?

The concerned Minister replied as follows…
“Hon”ble Delhi High Court in its order dated 28th November, 2017 has not given any specific direction to grant Military Service Pay (MSP) equally to all ranks. It may be informed that the Hon’ble Court in its order mentioned that the conduct of the petitioners in withholding material information and at the same time, trying to invoke equities under Article 226 of the Constitution of India is deprecated.

The 7th Central Pay Commission (CPC) had considered all aspects with regard to applicability of MSP including the rates while making its recommendations. The Government after carefully considering the recommendations of the 7th CPC in respect of MSP has accepted the same and have already been notified.”

7th CPC Recommendation on MSP

7th CPC Report Para 5.2.22 says…
5.2.22 Military Service Pay (MSP): 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 Rs 15,500 for the Service Officers, Rs 10,800 for Nursing Officers, Rs 5,200 for JCO/ORs, and Rs 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.

17.10 Military Service Pay (MSP): The Defence forces personnel will continue to be entitled to payment of Military Service Pay for all ranks up to and inclusive of Brigadiers and their equivalents. The MSP per month recommended is as follows:

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7th CPC Military Service Pay (MSP)

Govt Rejects Main Demand

7th CPC Military Service Pay (MSP) – Govt Rejects Main Demand

Central Government has rejected the main demand for higher Military Service Pay for Junior Commissioned Officers.

As per the media news today, the Army Headquarters was very upset over the decision of the Finace Ministry. Around 1.12 lakh military personnel including 87,646 Junior Commissioned Officers and 25,434 personnel of equivalent rank from the Navy and the India Air Force will be impacted by the decision.

The Defence Force Personnel, particularly the JCOs in Army, demanded to increase the MSP from Rs.5500 to Rs.10000. Earlier the 7th Central Pay Commission has recommended MSP Rs.5200 to JCOs.(Table shown the rates of MSP recommended by 7th CPC)

7th Central Pay Commission has applied a common multiplication factor of 2.57 on MSP of JCOs and ORs. As per methodology, the MSP has been raised to Rs.5200 pm from Rs.2000 pm.

The long pending demand on MSP that the commission forgot to consider that both JOCs and Equivalents are also Group ‘B’ Officers.

Whereas, the Group ‘B’ officers in Military Nursing Service, MSP had been fixed Rs.10800 pm. All JCOs and ORs (Combatants) demanded to raise the MSP to Rs.10000 pm at par with MNS Officers.

The 7th CPC recommended the rates of MSP was as follows:

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.

The Military Service Pay, which is a compensation for the various aspects e.g., intangibles linked to special conditions of service, conducting full spectrum operation including force projection outside India’s boundaries, superannuation at a younger age and for the edge historically enjoyed by the Defence Forces over the civilian scales, will be admissible to the Defence forces personnel only.

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Ministry of Defence
Grant of Military Service Pay

12 MAR 2018

Delhi High Court in its order dated 28 November 2017 has not given any specific direction to grant Military Service Pay (MSP) equally to all ranks. It may be informed that the court in its order mentioned that the conduct of the petitioners in withholding material information and at the same time, trying to invoke equities under Article 226 of the Constitution of India is deprecated.

The 7thCentral Pay Commission (CPC) had considered all aspects with regard to applicability of MSP including the rates while making its recommendations. The Government after carefully considering the recommendations of the 7thCPC in respect of MSP has accepted the same and have already been notified.

This information was given by RakshaRajyaMantriDr. Subhash Bhamre in a written reply to Shri Mahendra Singh Mahrain Rajya Sabha today.

PIB

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GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

No.E(G) 2013/EM 1-5

New Delhi, dated 06, March 2017

The General Secretary,
National Federation of Indian Railwaymen.
3, Chelmsford Road,
New Delhi.

Sir.

Sub: Fixation of Pay of re-employed pensioners – treatment of Military Service Pay (MSP) – reg.

The undersigned is directed to refer to your letter No.II/35/Part XIII dated 10.01.2017 on the above subject and to state that the illustration given in your letter regarding treatment of Military Service Pay (MSP) while fixing the pay of ex-servicemen re-employed in the Railways has been examined in consultation with the Finance Directorate is not as per the instructions contained in DoP&T’s OM No.3/19/2009 Estt. Pay II dated 08.11.2010 which was circulated to the Railways vide Board’s letter No.E(G) 2013/EM 1-4 dated 24.07.2013 and reiterated vide Board’s letter of even number dated 15.12.2016. The DoP&T’s OM only provides that the MSP part of pension will not be deducted from the pay fixed on re-employment. It does not provide for including MSP in the pay fixed on re-employment.

Yours faithfully,
sd/-
for Secretary/
Railway Board

Source: NFIR

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GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD
No.E(G)2013/EM 1-5

New Delhi, dated 16/01/2017

The General Secretary,
N.F.I.R.,
3, Chelmsford Road,
New Delhi – 110055.

Dear Sir,

Sub:  Applicability of Railway Services (Revised Pay) Rules, 2008 for persons re-employed in Railway service after retirement from Defence Forces – reg.

The undersigned is directed to refer to NFIR’s letter-(No.II/35/Pt. XIII dated 23/11/2016 on the above subject and to state that as decided in the meeting with representatives of NFIR in the meeting held in ED/IR’s room on 27/9/2016, reference has been made to DOP&T for seeking clarification, duly incorporating the-views of NFIR (copy enclosed). Their reply in the matter is awaited despite a reminder dated 4/1/2017.

Instructions have also been issued to GMs/Zonal Railways, Production Units etc. vide letter [No. E(G)/2013/EM 1-5 dated 15/12/2016] (copy enclosed) for strictly complying with the instructions contained in Board’s  letter No. E(G)2013/EM 1-4 dated 24/7/2013 regarding treatment of Military Service Pay (MSP) while fixing the pay of ex-servicemen re-employed on the Railways.

DA: As above

Yours faithfully,
sd/-
for Secretary Railway Board

Source: NFIR

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MHA for Pay on Par with Army for Paramilitary – While recommending a ‘CAPF service pay’, the home ministry said, “CAPF fulfills all attributes required for military service pay, which includes separation from family.

Drawing a parallel with defense forces, Rajnath Singh-led home ministry, has recommended equivalent pay for a second in command (2IC) in central paramilitary to that of a lieutenant colonel in the army. At present, there is a difference of Rs 40,000 in their salaries “despite operational role of both ranks being similar in nature,” the home ministry informed the empowered committee of secretaries (E-COS) in its recent discussion.

In its presentation before the ECOS, the MHA also batted for a ‘special pay’ on par with the army. The defence forces get a special allowance in the form of military service pay (MSP) over and above their salaries.

While recommending a ‘CAPF service pay’, the home ministry said, “CAPF fulfills all attributes required for MSP, which includes separation from family.

They are the key pillars of internal and border guarding, handle warlike situation and continuously engaged in operations.”

According to an MHA official, the proposal for a ‘CAPF special pay’ was earlier mooted before the 7th pay commission last year. However, it was shelved at the last minute.

He also stated that the CAPF has raised nearly 40 demands, which were examined at the MHA, before recommending 11 of them to E-COS.

While terming it to be a “great morale booster” for the forces, the home ministry in its recommendation also sought additional leave travel concession (LTC) for CAPF personnel serving in high altitude on par with defense forces that will “facilitate personnel to visit at least twice to their families on government cost,” MHA said in its representation.

Home ministry also sought to address the problem of stagnation among the paramilitary by proposing that modified assured career progression scheme (MCAP). It shall be allowed four times at an interval of 8, 16, 24 and 32 instead of 3 times at an interval of 10, 20,30 years. “At present, it takes 20-22 years for them to get their first promotion and this has also led officers to quit. As many as 9,300 personnel quit ITBP, CISF, SSB BSF, CRPF, due to non-friendly working conditions,” said an official.

The government also advocated for a better leave structure for the personnel who are deployed for counter-insurgency operations across the country.

Source: Economic Times

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Military Service Pay is paid as a compensation to the Armed Forces personnel as a recognition for the intangible aspects linked to the special conditions of their service.

Defence Minister has clarified about Military Service Pay (MSP) is being paid to the Armed Forces Personnel w.e.f. 1st September, 2008.

Press Information Bureau
Government of India
Ministry of Defence

15-March-2016

Discrimination in Structure of Giving MSP

Military Service Pay (MSP) is being paid to the Armed Forces Personnel w.e.f. 1st September, 2008. It is a compensation paid to the Armed Forces personnel as a recognition for the intangible aspects linked to the special conditions of their service. On recommendation of 6th Central Pay Commission, MSP was introduced for the first time in respect of Armed Forces.

The MSP being paid to Armed Forces Personnel is in two slabs:-

(i) For Officers – Rs.6,000 per month

(ii) For JCOs/OR – Rs.2,000 per month.

However, Government has separately provided a number of allowances based on risks and hardships involved at a location / in an operation, such as High Altitude Allowances, Field Area / Modified Area Allowances, Counter Insurgency Allowance etc.

This information was given by Defence Minister Shri Manohar Parrikar in a written reply to Shri Mahendra Singh Mahra in Rajya Sabha today.

Click to view the Pres Release

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