Thursday, December 24, 2015

Report of the Seventh Central Pay Commission 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
= Rs.15,600 + (2 x Rs.630) + Rs.6,100 = Rs.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 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.

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 VICPC 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 Rs.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/ORsand anotherfortheMilitaryNursingOfficers. Theexistingranks 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 existinguniqueness in the paystructureof MNS officers. Some of theunique 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)
Pay Band
5 200-20200
Grade Pay
2000
2400
2800
E ntry Pay (EP)
8 460
9 910
1 1360
Le vel
3
4
5
Index
2 . 5 7
2 . 5 7
2 . 5 7
1
21700
25500
29200
2
22400
26300
30100
3
23100
27100
31000
4
23800
27900
31900
5
24500
28700
32900
6
25200
29600
33900
7
26000
30500
34900
8
26800
31400
35900
9
27600
32300
37000
10
28400
33300
38100
11
29300
34300
39200
12
30200
35300
40400
13
31100
36400
41600
14
32000
37500
42800
15
33000
38600
44100
16
34000
39800
45400
17
35000
41000
46800
18
36100
42200
48200
19
37200
43500
49600
20
38300
44800
51100
21
39400
46100
52600
22
40600
47500
54200
23
41800
48900
55800
24
43100
50400
57500

Pay Band
9 300-34800
Grade Pay
3 400
4 200
4 600
4 800
5 400
E ntry Pay (EP)
1 2700
1 3500
1 7140
1 8150
2 0280
Le vel
5A
6
7
8
9
Index
2 . 6 2
2 . 6 2
2 . 6 2
2 . 6 2
2 . 6 2
1
33300
35400
44900
47600
53100
2
34300
36500
46200
49000
54700
3
35300
37600
47600
50500
56300
4
36400
38700
49000
52000
58000
5
37500
39900
50500
53600
59700
6
38600
41100
52000
55200
61500
7
39800
42300
53600
56900
63300
8
41000
43600
55200
58600
65200
9
42200
44900
56900
60400
67200
10
43500
46200
58600
62200
69200
11
44800
47600
60400
64100
71300
12
46100
49000
62200
66000
73400
13
47500
50500
64100
68000
75600
14
48900
52000
66000
70000
77900
15
50400
53600
68000
72100
80200
16
51900
55200
70000
74300
82600
17
53500
56900
72100
76500
85100
18
55100
58600
74300
78800
87700
19
56800
60400
76500
81200
90300
20
58500
62200
78800
83600
93000
21
60300
64100
81200
86100
95800
22
62100
66000
83600
88700
98700
23
64000
68000
86100
91400
101700
24
65900
70000
88700
94100
104800

Pay Band
1 5600-39100
Grade Pay
5 400
6 100
6 600
E ntry Pay (EP)
2 1000
2 2960
2 5980
Le vel
1 0
1 0B
1 1
Index
2 . 6 7
2 . 6 7
2 . 6 7
1
56100
61300
69400
2
57800
63100
71500
3
59500
65000
73600
4
61300
67000
75800
5
63100
69000
78100
6
65000
71100
80400
7
67000
73200
82800
8
69000
75400
85300
9
71100
77700
87900
10
73200
80000
90500
11
75400
82400
93200
12
77700
84900
96000
13
80000
87400
98900
14
82400
90000
101900
15
84900
92700
105000
16
87400
95500
108200
17
90000
98400
111400
18
92700
101400
114700
19
95500
104400
118100
20
98400
107500
121600
21
101400
110700
125200
22
104400
114000
129000
23
107500
117400
132900
24
110700
120900
136900

Pay Band
3 7400-67000
Grade Pay
8 000
8 700
8 900
1 0000
E ntry Pay (EP)
4 5400
4 8900
5 2290
5 3000
Le vel
1 2 A
13
1 3 A
14
Index
2 . 5 7
2 . 5 7
2 . 5 7
2 . 7 2
1
116700
125700
134400
144200
2
120200
129500
138400
148500
3
123800
133400
142600
153000
4
127500
137400
146900
157600
5
131300
141500
151300
162300
6
135200
145700
155800
167200
7
139300
150100
160500
172200
8
143500
154600
165300
177400
9
147800
159200
170300
182700
10
152200
164000
175400
188200
11
156800
168900
180700
193800
12
161500
174000
186100
199600
13
166300
179200
191700
205600
14
171300
184600
197500
211800
15
176400
190100
218200
16
181700
195800
17
187200
18
192800


Pay Band
6 7000-79000
7 5500-80000
8 0000
9 0000
Grade Pay
E ntry Pay (EP)
6 7000
7 5500
8 0000
9 0000
Le vel
15
16
17
18
Index
2 . 7 2
2 . 7 2
2 . 8 1
2 . 7 8
1
182200
205400
225000
250000
2
187700
211600
3
193300
217900
4
199100
224400
5
205100
6
211300
7
217600
8
224100


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.

P ay Structure of Defence Officers and Military Nursing Service O fficers over time
Rank
V CPC
VI CPC
Army
MNS
Army
MNS
Lieutenant
8250-300-10050RP=Nil
8000-300-9500RP=Nil
GP 5400 (PB-3)MSP=Rs.6000
GP 5400 (PB-3)MSP=Rs.4200
Captain
9600-300-11400RP=Rs.400
9400-300-12100RP=Nil
GP 6100MSP=Rs.6000
GP 5700MSP=Rs.4200
Major
11600-325-14850RP=Rs.1200
11200-300-14800RP=Nil
GP 6600MSP=Rs.6000
GP 6100MSP=Rs.4200
Lieutenant Colonel
13500-400-17100RP=Rs.1600
12800-300-15200RP=Nil
GP 8000MSP=Rs.6000
GP 6600MSP=Rs.4200
Colonel
15100-450-17350RP=Rs.2000
13400-300-15500RP=Nil
GP 8700MSP=Rs.6000
GP 7600MSP=Rs.4200
Brigadier
16700-450-18050RP=Rs.2400
14700-300-16200RP=Nil
GP 8900MSP=Rs.6000
GP 8400MSP=Rs.4200
Major General
18400-500-22400 RP subsumed in Pay
16400-450-20000
GP 10000MSP subsumed in Pay
GP 9000MSP subsumed in Pay
RP- Rank Pay; MSP- Military S ervice 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)

P ay Ba nd
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)= Rs.1,09,807. This has been approximated to Rs.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:

i. In the case of Captains, the Commission has moderated the minimum pay level upwards to Rs.59,00017, to avoid bunching of minimum pay of MNS Lieutenant and Captain.

ii. In the case of Brigadiers some moderation downwards from the figure arrived at by the formula (Rs.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., Rs.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 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 Without moderation upwards, by use of formula, the minimum pay for a Captain of MNS would be Rs.57,280, which would be very close to Rs.56,100 the minimum pay at the level of an MNS Lieutenant.

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