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RESTRICTED CHAPTER – I INTRODUCTION Preamble 1.1. National security environment comprises the entire gamut of prevailing issues that may directly or indirectly and internally or externally, reinforce political, economic or military well being. Therefore, national security strategy of a country can be termed as the art and science of employing a nation’s intellectual, political, economic and military resources both in peace and war. No amount of economic liberalisation and economic upliftment can be achieved without ‘creation’ and ‘maintenance’ of defence forces to defend the country against apparent and perceived threats and dangers. In the national security context, it is not possible to define a finite level of investment as ‘affordable’ and the ‘credibility’ of the defence posture is extremely difficult to prove. In fact, the ultimate success of the Armed Forces lies in the military power not being required to be used, though it is ironical that if it is not required for some time, it is perceived as infructuous. 1.2. Indian Armed Forces have been the envy of other nations and India proudly claims that she has the world’s largest volunteer Armed Forces. The country values its security very highly, but of time the man behind the gun has been neglected or taken for granted, for far too long. The legitimate needs of National Security and aspirations of those primarily responsible for it have to be met. Armed Forces are the only forces today that are apolitical and can be called upon in any crisis affecting both external and internal security. It is not only essential but imperative that necessary investments are made to maintain the high quality and morale of military manpower. The Armed Forces because of their special character and ethos, should be treated as a special organisation. Accordingly, the pay and emoluments structure that the Pay Commission evolves for them, should be RESTRICTED
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CHAPTER – I

INTRODUCTION

Preamble

1.1. National security environment comprises the entire gamut of prevailing issues that may directly or indirectly and internally or externally, reinforce political, economic or military well being. Therefore, national security strategy of a country can be termed as the art and science of employing a nation’s intellectual, political, economic and military resources both in peace and war. No amount of economic liberalisation and economic upliftment can be achieved without ‘creation’ and ‘maintenance’ of defence forces to defend the country against apparent and perceived threats and dangers. In the national security context, it is not possible to define a finite level of investment as ‘affordable’ and the ‘credibility’ of the defence posture is extremely difficult to prove. In fact, the ultimate success of the Armed Forces lies in the military power not being required to be used, though it is ironical that if it is not required for some time, it is perceived as infructuous.

1.2. Indian Armed Forces have been the envy of other nations and India proudly claims that she has the world’s largest volunteer Armed Forces. The country values its security very highly, but of time the man behind the gun has been neglected or taken for granted, for far too long. The legitimate needs of National Security and aspirations of those primarily responsible for it have to be met. Armed Forces are the only forces today that are apolitical and can be called upon in any crisis affecting both external and internal security. It is not only essential but imperative that necessary investments are made to maintain the high quality and morale of military manpower. The Armed Forces because of their special character and ethos, should be treated as a special organisation. Accordingly, the pay and emoluments structure that the Pay Commission evolves for them, should be distinctive in character and not equated with other Central Government Organisations. The Armed Forces need to be adequately compensated for their peculiar and extremely difficult service conditions.

1.3. Liberalisation of the economy and resultant socio-economic changes coupled with gradual break up of joint families have brought about changes in the social values of all ranks in the Armed Forces. They are now more aware of the comparative deprivations and disparities in the structure of their emoluments and gradual arbitrary erosion of status which was the bed rock of pride and élan of the Armed Forces. The existing emoluments structure of the Armed Forces is not considered as adequate compensation for the difficult service conditions. Low remunerations have not only resulted in dilution of quality of life but also brought in abridgement in moral values. They are not adequate to attract enough number of professionals, specially to the officer corps and to a career in the Armed Forces which has now become one of the last career choices of the country’s youth.

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Role Of The Armed Forces & Social Environment

1.4. There is a widespread impression that the concept underlying the term ‘National Security’ limits itself to safeguarding our territorial integrity and sovereignty. The general tendency is to look for specific causes that may pose security problems for the country. The assumption that the threat to the security of the country is purely situational, serves to draw a curtain over a correct understanding of some of the general laws of international coexistence that determine the framework of security for nations like India. In an endeavour to identify the role being played by the Armed Forces, a much larger, all encompassing view of the international and domestic scene must be crystallized before we venture to ascribe a task to the Armed Forces. The other aspect that needs to be viewed is the general threat scenario.

1.5. The primary role of the Armed Forces enmeshes itself with the security concerns of the Indian State across a security frontier that has burgeoned over the years, especially with the penetrability of the Himalayas and advances in military technology. India today is faced with an extensive defence and security perimeter; over 16500 kms of land borders, including nearly 7000 kms of borders with states with which significant territorial disputes persist; a 7600 kms long coastline and 2.5 million sq kms of Exclusive Economic Zone to protect, besides over 500 islands most of them separated from the mainland by as much as 1400 kms. There are increasing stakes in off-shore oilfields and trade across the seas.

1.6. The nature of military role played by Armed Forces has itself undergone a qualitative change. They are increasingly required to deal with low intensity armed conflict situations, curb insurgencies, terrorist activity or participate in United Nations’ peace keeping assignments. The range of activities goes well beyond pure military action to encompass civil administration, welfare, medical support and perhaps moderating the ideological ethos of a group or society. Such wide range of activities demands skills and abilities of a diverse nature, if comprehensive success is to be achieved. During the course of these civic action campaigns, the Forces assume the mantle of the representatives and ambassadors of the Indian State, projecting the values and objectives enshrined in the Indian Constitution.

1.7. Social change is an inevitable part of life and changes could be progressive as well as regressive. The pattern and pace of change have had a very significant impact on the values, attitudes and traditional social institutions. Personnel of Armed Forces cannot be insulated from these changes notwithstanding the regimentation, as they are an organic part of the society and draw sustenance from the mainstream of the society. Some of the changes and their effect on the personnel of Armed forces as a ‘social institution’ are discussed in the succeeding paragraphs.

1.8. Value System. Increasing materialistic values have overtaken higher and noble ideals like spirit of sacrifice, selflessness and concern for others, especially for those placed below. Respect for knowledge, age, authority of elders and discipline are virtues either extinct or on the brink of extinction. In the process, the gap between the

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ideals of military service and the prevalent social ethos has inexorably widened. The attractiveness, if any, of the Armed Forces, no longer rests merely on their being a noble profession for the brave, adventurous and high minded. Material compensation is fast becoming the bottom line for career options. Sense of idealism and patriotism have taken a back seat.

1.9. Social Institution. The joint family system which traditionally provided strength and support has given way to nuclear families. The socio economic needs of servicemen have consequently become more critical and the resettlement problems aggravated. A feeling of insecurity has set in.

1.10. Role of Money Power. Money power has come to be recognized as the sole and exclusive instrument of getting anything done. What ought to be done in the normal course as a matter of duty gets done only for monetary considerations. The insidious and domineering influence of money power can be felt in all spheres of life and has the following far reaching implications:-

(a) Much higher quality of leadership is required to train, motivate and lead contemporary soldiers in the absence of the influence of supportive institutions like the joint family.

(b) High monetary compensation, longer service span and assured post retirement resettlement, now weigh more heavily for attracting and retaining quality men in the Armed Forces.

1.11. Effect of Information Explosion. Exposure to the media has increased the general awareness of Service Personnel of the living standards of their better placed peer group and has heightened their aspirations and expectations.

MAJOR AREAS OF FOCUS AND CONCERN

Status of the Armed Forces within the Government

1.12. The issue of inter-se equation between the service officers and their civilian counterparts has been a matter of grave concern for quite some time. The three services, have voiced their concern over the years, especially with regard to the downslide of Senior Officers status from the Warrant of Precedence of 1947 to the present day. The Third Pay Commission had also observed and recommended the need for parity with other Group A services, particularly with the IPS.

1.13. The genesis of the officers’ pay scales can be traced to pre-independence era when Indian Armed Forces officers (ICO-Indian Commissioned Officers) were grouped a step below the British trained Officers (KCIO-Kings Commission Indian Officers). The ICO was abolished in 1942 and brought at par with KCIO which was much above any other civil servants in India both in terms of status as well as pay scales. The pre-independence environment coupled with the experiences from the Second World War might have been the compelling reasons for the military to be elevated to the highest level above the civil services and the police.

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1.14. From such a level of pre-independence parity, to the current status and pay scales of service officers, is a classic saga of apathy, neglect, injustice and indifference towards the Armed Forces. The two major issues that have affected the Armed Forces for over half a century are the protocol and the integration with All India Cadres with differentiation from the IAS.

1.15. Defence and Diplomacy are two important components of any nation and in the Indian Context both of them constitute the only two completely centralized objects. It therefore stands to logic that the Armed Forces personnel should neither be compared nor be lowered than the All India Services. However, the successive Pay Commissions turned a blind eye towards this all important aspect.

1.16. The Post-War, Pay Committee brought down the pay scales considerably, in comparison to that drawn by a KCIO pre-independence and equated the Service officers with the Police. This removed the traditional edge in pay scales over the ICS (now IAS). Having realized the flaws in the First Pay Commission, the Govt tried damage control through introduction of a few allowances which did little to alleviate the injustice meted out to the Services. The subsequent committees (Raghuramiah committee in 1966 and Kamat Committee in 1959- second pay commission) did little in terms of status except for increasing the allowances and net emoluments.

1.17. The Third Pay Commission, for the first time, considered revision of Armed Forces pay, together with the Civil Services. The scope of the Third CPC, was limited largely to revision of Pay scales that existed. Thereafter in 1979, the Second Warrant of Precedence was promulgated, that lowered the Status of Service Officers. This Warrant of Precedence formed the basis for establishing relativities in the Fourth CPC. The running pay band, covering a span of 24 years instead of 33 years, lead to stagnation. Rank Pay was introduced, but instead of being given in addition to the replacement scale, was subsumed from it. In the Fifth CPC, it was further established that Rank Pay would not count towards Status. Thus a Brigadier (equivalent) with 26 years service was placed in a scale lower, than that of a Joint Secretary with 16 years service. Essentially, the equilibrium determined by length of Service was lost, to the detriment of the Armed Forces.

1.18. While it is appreciated, that Cadre reviews and Status are beyond the purview of the Sixth CPC, yet it is considered necessary to place on record, the feelings of hurt and resentment of Armed Forces Officers, who feel done down by the Government in lowering their Status, capping their Pay, that results in stagnation, without considering their length of service, even though they have outstanding records.

Perceived Advantages of Military Service

1.19. To a normal citizen of India, unexposed to matters Military, the Services would be perceived to be well looked after with perquisites, that would be the envy of a majority of citizens. This issue will be dealt with in some detail, in the succeeding chapter.

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Intangible Disadvantages of Military Service

1.20. While the Services from the outside, appear to enjoy a special status in the country, there are views to the contrary expressed by Servicemen. These intangibles have been examined and quantified by a study group from the College of Defence Management, Secunderabad. Their findings are summarised in the succeeding chapter.

Career Prospects

1.21. Career Prospects. Issues relating to career prospects, growth and development, have also emerged as major concerns amongst Armed Forces personnel, both at the officer and the personnel below officers rank levels. Whilst considering career prospects, especially with regard to officers, it needs to be borne in mind that the Armed Forces cadre structure is highly functional and rank oriented, tailored to meet combat situations. This rank related hierarchy, has historical basis and is universally understood. It is not only time-tested, but is broadly available in Armed Forces the world over. The cadre structure has, therefore, over the years remained static, except for the two cadre reviews in the 80’s. What needs to be highlighted, is that 97% of the Officer cadre, stagnate at the level of Colonels (equivalent) and below. While it is appreciated, that in a Military hierarchy, there will be a steep pyramidical structure for promotion, yet on the other hand, it would not be fair for outstanding Officers, who are denied promotions because of the limited vacancies available, to stagnate at that level. Particularly, when in the Civil Services, stagnation in Group A Services set in only at the SAG level and beyond. To break this impasse the only way ahead would be to link pay with length of Service, upto a reasonable level for the sake of parity between Group A Services.

1.22. Trauma of Supersession. The degree of frustration in career growth is further compounded by the fact that officers, who are not selected for promotion to the next higher rank are not necessarily undeserving of such promotions, by any stretch of imagination. If one applied the civilian yardstick for promotion, we would possibly have 99% officers being promoted rather than 25 to 30 % actually promoted today.

1.23. The situation for Personnel Below Officers Rank (PBOR) is also somewhat similar. Time taken for actual promotions to higher ranks, is far greater than that stipulated in the promotion regulations. Thereafter, the numbers who eventually are promoted, are once again infinitely small. Further, there are variations in actual periods of promotion to the same rank within a Service and between the three Services. This also leads to understandable dissatisfaction amongst the men. It is, therefore, no surprise that career progression has emerged as top concern amongst PBOR.

FORMULATION OF MINIMUM WAGE

1.24. The methodology adopted by the V th CPC for formulation of minimum pay was based on a modified version of the 'Constant Relative Income Criterion'. The principle adopted by them was based on an increase in per Capita Net National Product during

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the period 1986-95. This increase was calculated at a factor of 30.9%. The calculation methodology for determining the replacement scale, was the consolidation of IV th CPC scales, plus DA (148%) and thereafter using the multiplication factor of 30.9% to arrive at the replacement scale. An example to illustrate is shown below:-

(i) Minimum Basic Pay - Rs. 750.00(ii) 148 % DA - Rs. 1110.00

Total Rs. 1860.00

(iii) Minimum Basic Pay post IVth CPC- Rs. 2440.00(i.e. 1860.00 X 1.309)

In essence the multiplication factor accepted by the Govt was 3.4 times the IVth CPC scales.

The Armed Forces recommend the multiplications be determined by the VIth CPC, using the “Growth in Per Capita Income” approach. Since the growth registered so far, as published by the Economic Survey of India is 130 %, this be used as the base for determining replacement scale. Details of working are illustrated in the succeeding paragraph.

1.25. Formulating Minimum Wage based on Per Capita Income Basis . Minimum salary based on growth in Per Capita Income works out to enhancement of 130% growth i.e. Per Capita Income grew from Rs. 10,149/- in 1995-96 to Rs. 23,141.00 in 2004-05 registering a net growth of 130%. With this as the base, the minimum wage woks out as follows: -

(i) Basic Pay - Rs. 2,550.00(ii) Dearness Pay - Rs. 1,275.00(iii) DA @ 24% as on 01 Jan 2006 - Rs. 918.00

--------------------------Rs. 4,743.00

(iv) Add 130% Per Capita Growth Rate Rs. 6,166.00 --------------------------

Total Rs. 10,809.00

(v) Rounded off to - Rs. 11,000.00 PM

This works out to a little more than 4.3 times the minimum pay of Rs. 2,550/- granted by the Vth CPC.

1.26. Keeping the above in its perspective and the expectations and aspirations of the Armed Forces personnel, it is considered prudent that the minimum salary improvement should be by at least 4.5 times the existing scales. Accordingly, the proposed Pay scales and most of the allowances have been pegged, keeping the generic enhancement, to 4.5 times and adjusting the minimum starting salary marginally, to suit the scales of Pay.

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CHAPTER - II

MILITARY SERVICE PAY

QUANTIFICATION OF INTANGIBLE ADVANTAGES AND DISADVANTAGES OF MILITARY SERVICE

Military Service Pay

2.1. The intangibilities in Servicemen’s lives have never been addressed before, nor have they been included in any other existing pay and allowances considered so far. The proposed Military Service Pay (MSP) is an addendum Pay to address those intangible constraints and disadvantages unique to the Military personnel, which affect them for most part of their service career and in their retired lives.

2.2. The proposed MSP is neither synonymous nor an alternative to the existing pay and allowances. The visualized MSP is an independent and a de-novo pay package, desired to be sought in addition to the existing and proposed emoluments.

Contemporary Military Environment

2.3. The average length of service in Low Intensity Conflict Operations in India by active combatant military men is 10.87 years (standard deviation 5.54 years) as compared to one year service for Western soldiers in Vietnam, Iraq and Afghanistan1. Such prolonged and extraordinary service conditions generate acute stress and tribulations which in turn necessitate extraordinary remuneration and pay.

Intangible Disadvantages of Military Service

2.4. Obvious Disadvantages. Threat to life, truncated careers, separation from families, limited career prospects, frequent transfers, ‘reserve’ liability, restriction of fundamental rights, harsh and daunting work environment, isolation and deprivation are the obvious, upfront and essential constraints which are generally known.

2.5. Not so Obvious Disadvantages. These include the constrained education levels of Defence Services children, their inhibited emotional growth and mental turmoil owing to frequent absence of their fathers. Separation disrupts conjugal life and professional growth of the soldier’s spouse. The premonition of impending calamity and a truncated career is perhaps the most disparaging disadvantage of

1 Extract from Original Research Paper on Psychological Effect of Low Intensity Conflict Operations by Professor and Head of Department of Psychiatry, Ranchi Institute of Neuropsychiatry and Allied Sciences, Senior Advisor, Armed Forces Medical Services and Former Commandant of Base Hospital, Srinagar and DGMS (Army) in Indian Journal of Psychiatry , 2006; 48:223-231

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military life. Early retirement results in lower earnings when social and familial responsibilities are at its peak.

2.6. Threat to Life. The probability of a military man loosing his life as a result of direct pro-active military action in field is 84% more than his civilian counterparts and 11.4% more in peace locations.

2.7. Truncated Careers. Retirement at ages between 36 to 50 years, when the domestic responsibilities are at its peak, imposes severe strain and a sense of insecurity in the in the minds of service men. It also results in a lifetime earning disparity of 15 % (of Basic Pay) vis-à-vis his civilian counterparts for Officers and 25% in the case of the PBOR.

2.8. Separation from Families. Average separation in the service life of a PBOR is 78% and of a military officer is 67% which can be translated to 30 % of Basic Pay for PBOR and 25% of Basic Pay for Officers. This is based on the analogy from the general trends of awards in cases of temporary separation, in the law courts of our country.

2.9. Transfers and Dislocations. The likely disparity in the quantum of dislocations due to transfers between the military personnel and his civilian counterparts is 33% for Officers and 60 % for PBOR.

2.10. Bleak Career Prospects. The career prospects in the Armed Forces are the most unpromising when compared with any other Govt Service. The acute pyramidical structure, impedes vertical growth and inhibits promotion to higher levels, inspite of personnel meeting all other parameters.

2.11. Stringent Physical Standards & Resultant Career Insecurity. Maintenance of exacting physical standards, required of military personnel is an arduous and lifelong endeavour. 27,110 military personnel2 have been invalidated out of the Services since 2002, because of their inability to maintain themselves in the desired medical category and meeting the required physical standards.

2.12. Undefined and Unlimited Working Hours. Despite the 60 days leave entitled to the men in uniform, the average number of hours put in by Servicemen is 2.6 times more, than Govt Employees in similarly placed positions.

2.13. Effect of Continuous Exposure to Hazardous Situations. Lifelong exposure and deployment in extreme weather conditions and difficult terrain combined with daunting situational parameters, imposes physical and psychological impact on the health of servicemen. In addition to the attributable physical and psychological disabilities, personnel develop numerous other ailments for which they are not compensated.

2 Source: MISO Army, Navy and Air HQ and AGIF, NGIF and AFGIS.

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2.14. Isolation and Deprivation. Deployment in remote and isolated places which are generally devoid of the contemporary necessities of dignified existence has an adverse impact on the soldier’s social and family life and also induces acute stress and long term psychological imbalances.

2.15. Restriction of Fundamental Rights and Strict Disciplinary Codes. Restriction on significant portions of fundamental rights, including the freedom of speech, mandates non-exploitation of the multifaceted human opportunities available to all citizens of the country. Succumbing to the most natural human instinct of self-preservation (in the face of enemy) is punishable by death.

Perceived Advantages and Benefits of Military Service

2.16. Perception. The ‘perception’ of the ‘benefits’ in the Armed Forces merits analysis in the context of their “exclusiveness”, “significance in the present world” and “benefit value” to the contemporary military. The professed advantages, as listed out by various Pay Commissions and as perceived by the environment, are elucidated in the succeeding paragraphs.

2.17. Entitled Rations. The provision of rations to military personnel is an essential service pre-requisite to cater for the high caloric requirements for nature of their job.

2.18. Medical Facilities. The exclusive nature of their tasking and job necessitates medical facilities in areas of their deployment. Essential medical facilities, captive or remunerative, are available to all Govt servants and are therefore not exclusive to the Armed Forces.

2.19. Railway Concession Vouchers for PBOR and Form D for Officers. Owing to the requirement of service on the frontiers of the Nation, the personnel have to travel throughout the length and breadth of the country. Accordingly, this is considered a mandatory service pre-requisite.

2.20. Liberal Leave Entitlements. The entire familial, domestic and basal requirements of military personnel are to be completed in the 60 days allotted to him every year. A serviceman is compelled to accomplish the entire quota of one year’s domestic and family chores during his leave period. The enhanced leave entitlements are accordingly considered a mandatory service pre-requisite.

2.21. Canteen Stores Department (CSD) Facility. CSD is a facility for servicemen in remote and inaccessible areas. The profits from the CSD provides budgetary support to the Govt. The second issue meriting consideration is that all Govt Employees enjoy some form for “Canteen facilities”. The facility accordingly is also no longer exclusive to the Armed Forces.

2.22. Greater Job Security than Most Govt Employees. All Govt Jobs hold the same level of “job security”, except the Armed Forces, whose job security is limited to

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the extent permitted by conditions of service. A fair method, which can be used to assess this issue, perhaps, is the assessment and comparison of the actual number of personnel being “forced out” due to organizational reasons, against their own will. An incisive analysis of the issue reveals the fact that, contrary to the popular perception, the soldiers are beset with grave job insecurity owing to invalidment out of service due to medical reasons and supersession or threat of supersession.

2.23. Edge in Starting Pay Provided vis-à-vis Group A Officers. The real starting pay of all Class A officers, when he actually joins service, is Rs 8275 (including increments for the number of years trained in respective Academy) which is more than that of an Armed Forces Officer, at Rs 8250. Secondly the purported ‘edge’ at start, disappears in a few years as the aspect of “slow” promotions neutralises any perceived initial advantage. The relevancy of the edge may only be considered rational if it is maintained for the entire service life.

2.24. Lean Period of Work in Peace Time. This allegory is perhaps the result of incomplete knowledge of the Armed Force’s commitments and obligations in non-war situations. Responding to National disasters and crisis situations, ever-ready status, training, preparation for war, etc are serious and indispensable tasks undertaken by the Armed Forces during their peace tenures which in turn precludes any ‘lean’ period of work.

2.25. Relatively Better Retirement Benefits and Govt Assistance in Re-settlement. While the retirement benefits in the form of pensions is beneficial, the efforts of the Govt to provide employment post retirement has had very limited success.

2.26. House, Electricity, Water. The subsidies granted in the license fee for the house, electricity and water are similar for all civil Govt employees and are appropriate to the pay.

2.27. Uniform, Washing, Rum, Cigarette and Hair Cutting Allowance for PBOR. These are small concessions (total Rs. 75/- pm) given to the PBOR to enable them to maintain a high standard of military bearing and discipline.

2.28. Better Quality of Life in Military Cantonments. The “better quality of life in Military Cantonments” is, in a large measure, the result of self - effort of the military.

2.29. Adventure. Service in the Armed Forces does provide an opportunity for sports and adventure and is an essential ingredient of service life, being a de-stressor to assist an individual to recoup and re-energise for combat.

2.30. Travel. Service in the Armed Forces does provide the opportunity for travel. However, it is an essential pre-requisite of service.

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Impact of Military Services Conditions on the Armed Forces Personnel

2.31. Gabriel3 has noted that ‘rarely do military establishments attempt to measure the cost of war in terms of individual suffering’. Some of the impacts are as under:-

(a) Acute Stress and constrained Life Expectancy have an adverse and direct bearing on the performance and professional output of military men. A Research4 on Psychological Impact of Low Intensity Operations, the Armed Forces Personnel deployed in active operational situations display higher scores on CRSD (Instrument for Depression), MAST (alcohol abuse and dependence), GHQ (psychiatric disorders) and IES (distress) tests.

(b) Constrained Social and Domestic Life . Inability to utilise the social benefits and opportunities of emergent India, reticent psychological and physical growth of family, limited and inhibited scope for children education, repressed prospects for spouse employment, availability of suitable bride for the personnel, constrained food habits, inability to render the desired obligation towards parents, adds to the miseries of service personnel.

Other Indicators of Disquiet in the Armed Forces

2.32. Non-cognizance of the intangible disadvantages in the Armed Forces has led to erosion in the intrinsic strength of the Armed Forces. The indicators for such undesirable trends are as follows:-

(a) Suicides, Indiscipline, Fragging and Corruption. Such cases, which were unheard of till the seventies and eighties, are on the rise. Stress and deprivation, accentuated by military service conditions, are the primary causes of such actions.

(b) Premature Voluntary Retirement. Cases of professionally competent Officers and PBOR seeking premature discharge are on the rise.

(c) Military as a Service Option Amongst Nation’s Youth . Service in the Officer Cadre of the Defence Services had plummeted to almost the last position in the option profile of job seekers in the country, when the fifth Pay Commission was in session. It now appears that the Military is no longer even an option for even the average profile youth, hence the acute shortage.

(d) Disillusionment with Nation’s Commitment to Matters Military . Encroachment on military land, frivolous human right accusations, cases of brawls with civilians in market places and trains, cases of civil-military departmental antipathy on issues of common interest like military exercises on Public Land, field firing on military acquired land etc, are on the rise.

3 Gabriel RA. No more Heroes : Madness and psychiatry in war. New York; Hill & Wang ; 1987.4 Extract from Original Research Paper on Psychological Effect of Low Intensity Conflict Operations by Professor and Head of Department of Psychiatry, Ranchi Institute of Neuropsychiatry and Allied Sciences, Senior Advisor, Armed Forces Medical Services and Former Commandant of Base Hospital, Srinagar and DGMS (Army) in Indian Journal of Psychiatry , 2006; 48:223-231.

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Quantification of Military Service Pay

2.33. The quantification of all the advantages and disadvantages of service in the Armed Forces has been based on sound and proven managerial practices and models applicable internationally. Threat to life has been quantified based on the results of survey in the Armed Forces. The aspects of truncated careers and separation have been based on a rational logic, that all Govt Servants have to be enabled financially to ensure a dignified life for self and his family. The summarised conclusions thereof, are as follows:- (a) Intangible Disadvantages:-

Intangible Disadvantages Analysed Conclusions MSP

Threat to Life

Risk of Death (fatal battle casualties) : 84 % more than civilians

23 % of Basic Pay

Probability of getting injured (fatal and non fatal casualty) : 11.4%Pro-action and deliberation in exposing oneself to threat to life : much more Lifelong premonition of death : much more

Truncated Careers

Disparity in Life Cycle Pay : Officers -15 % & PBOR -25% Officers -15 % &

PBOR -25% of Basic Pay

Reduced Life Expectancy : Approx 10 YearsPsy on Family : Much morePsychological Impact and Stress on PBOR : Much more

Separation

Quantified Value of Separation : Officers - 25%, PBOR - 30 % 25 % of Basic

Pay for Officers and 30% for PBOR

Psy Effect on Child : AdversePsy Effect on Spouse : AdversePsy Impact and Stress on PBOR : Much More

Transfers and Dislocations

Increased Turbulence : 33% for Officers and 60% for PBOR

Requisite increase in MSP

Bleak Career Prospects Assured Career Progression

Assured Promotion to the Rank of Maj Gen for Officers and to Nb Sub for PBOR

Stringent Physical Standards

Major disadvantage Requisite Recognition

Unlimited Working Hours

Armed Forces Personnel work 2762 hours per annum more than their civilian counterparts

Requisite Recognition

Exposure to Hazardous terrain and climatic conditions

On completion of service, 4 to 5 % personnel have already died and almost 15 % are rendered Low Medical Category.

Suitable compensation

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Intangible Disadvantages Analysed Conclusions MSP

Isolation and Deprivation Grave disadvantage Requisite

RecognitionRestriction of Fundamental Rights

Considerable disadvantage Requisite Recognition

(b) Perceived Intangible Advantages:-

Intangible Advantages Analyzed Conclusions Effect on MSPEntitled Rations Service pre-requisites. Advantage in

comparison to civilians Rs 444 for Officers and Rs 389 for PBOR (average)

Minus 2.9% of Basic Pay (BP) for Officers and 9.5 % of BP for PBOR from MSP proposed

Better Medical care Medical facilities available to military is equally applicable to Civilians

Nil

Railway Concession Vouchers & Forms D

Service pre-requisites (the average benefit amounts to Rs 60 pm for Officers and Rs 162 pm for PBOR)

Nil

Longer Paid Leave Armed Forces Personnel work 2762 hours per annum more than their civilian counterparts

Requisite Recognition

CSD Facility No longer exclusive to Military, is a service pre-requisite and the benefit value is negligible

Nil

Sahayaks to selected Army Officers / JCOs

Mandatory requirement in “War Establishments”

Job Security Armed Forces Personnel are beset with grave job insecurity

Nil

Edge in Starting Pay There is NO edge in the de-facto starting pay and after 13 years the military is left far behind in the Pay Scales

Requisite measures required to ensure parity

Lean Period of Work in Peace Station

The intensity of work for military personnel does not reduce in peace stations

Nil

Resettlement and Retirement Benefits

To cater for truncated careers and also no longer unique to Military Service. The actual benefits accrued is negligible

Nil

License Fee for House, Electricity and Water

Advantage to the military personnel limited to average of Rs 100 -300 pm for Officers and 50 to 200 for PBOR (3.6% of BP for Officers and 6% of BP for PBOR)

Minus 3.6% of BP for Officers and 6% of BP for PBOR from MSP proposed

Uniform, Washing, Rum, Cigarette and Hair Cutting Allowance

Service pre-requisites (Rs 75 pm) Nil

Better Quality of Life in Military Cantonments

Mostly self created Nil

Early Promotion The perception of promotion in unfounded NilBetter Welfare amenities

Most welfare measures are self instituted and the balance are equally applicable to

Nil

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Intangible Advantages Analyzed Conclusions Effect on MSPothers.

Travel Not an advantage NilAdventure Not an advantage Nil

2.34. Summation of the quantification values for the disadvantages of Threat to Life, Truncated Careers and Separation and the benefits of subsidized license fee, electricity and water and entitled rations leads to the following value of the proposed Military Service Pay:-

(a) Officers . 56.5% of Basic Pay.

(b) PBOR . 62.5% of Basic Pay.

2.35. Acceptance of the proposed MSP is likely to act like a ‘catalyst’ in further enhancing the effectiveness of the ‘in-house’ measures by the Armed Forces.

Recommendations of CDM Team

2.36. Military Service Pay be instituted for the Defence Services exclusively in recognition to the special and unique nature of the job performed by them. The same be counted for pension and be subject to periodic review.

2.37. The MSP value be fixed at the following minimum quantified value:-

(a) Officers . 56.5% of Basic Pay.

(b) PBOR . 62.5% of Basic Pay.

2.38. Steps be initiated for an Assured Career Progression for the Military Personnel as follows:-

(a) Officers. Assured promotional progression to the rank of Major General and equivalent.

(b) PBOR. Assured promotional progression to the rank of Naib Subedar and equivalent.

2.39. An Intangible Quotient be included in the existing Transfer Grant (Composite Transfer Grant) to cater for the acute turbulence in the military personnel due to transfers. Alternatively, an equivalent increase in the proposed MSP be considered.

2.40. Apposite recognition of the intangibilities in a Serviceman’s life by the Nation and the Govt, with a view to inculcate the requisite empathy to the needs and aspirations of men in uniform.

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CHAPTER - III

PBOR PAY STRUCTURE

Background

3.1. The pay of Personnel Below Officer Rank (PBOR) in the Armed Forces, till 10 Oct 97, was linked to ‘trade’ structure in which they were inducted and the rank held by them. Even within the same rank, PBOR were grouped in different ‘Pay groups’ depending on the ‘trade’ assigned to them. Further, most of the ‘trades’ were peculiar to the respective Service, and only few trades were common to more than one Service, albeit with changed/modified nomenclature. Thus the pay structure of PBOR in each service, was closely inter-linked to the ‘Trade Structure’ in vogue then. There was however, little, or no uniformity with regards to number of trades and the ‘pay groups’ into which these were categorised in the three Services. This gross inequality, has been a matter of great concern and has been raised and addressed by the successive Pay Commissions without much success, except post V CPC, wherein the Service HQs, achieved a break through of sorts, resulting in the PBOR pay scales being divided into ‘X’, ‘Y’ & ‘Z’ groups based on entry level educational qualifications i.e. Diploma for Group ‘X’, Matric for Group ‘Y’ and Non-Matric for Group ‘Z’, w.e.f 10 Oct 97.

PROPOSALS TO THE VI CENTRAL PAY COMMISSION

3.2. Even though the revised ‘X’, ‘Y’ and ‘Z’ pay group structure of PBOR of the three Services, implemented w.e.f. 10 Oct 97, was based on their educational qualification, taking into consideration the trade, combat and leadership skills, yet many infirmities, inequalities and distortions in the pay scales between the three Services were observed. Therefore, it was felt that there is a definite need to carry out an in-depth study of various trades in different categories of the three Services by the VI th CPC. Accordingly, to address this issue, a trade rationalisation study was carried out by a core group in the Service HQs, and a comprehensive proposal to rationalise the PBOR Trade Structure, was forwarded to MoD for approval in Jul 2005. However, the same is still pending finalisation with the MoD.

3.3. Hence, the proposal for PBOR pay scales, including the propose trade rationalisation as mentioned above, is now being proposed to the VI th CPC. Various issues concerning PBOR pay have accordingly been categorised, and will be discussed, under the following heads:-

(a) Rationalisation of Trades/Pay groups in respect of PBOR of the three services.

(b) Common Pay Scale.

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(c) Assured Career Progression.

(d) Minimum Notional increment on promotion to PBOR.

(e) Abolition of Recruits Pay.

(f) Extension of ‘Classification Pay’, presently admissible to Army PBOR, to Navy and Air Force PBOR.

(g) Extra Duty Allowance.

(h) Pay Scales of Hon. Commissioned Officers.

(j) Good Conduct Badge Pay.

(k) Pay Structure of DSC personnel.

(l) Pay Structure of NCs (E) of Air Force.

Rationalisation of Trades/Groups - PBOR

3.4. Existing Trade Structure. Post Vth CPC, the Trade/Pay Group structure of PBOR was rationalised to a limited extent as brought out earlier. The trade structure based on the entry qualifications as existing now, with number of trades in each group for the three services is as follows:-

Sl No

Group with Entry Qualification

No of Trades Total

Army Navy Air Force(a) X (Diploma Entry) 28 11 23 62(b) Y (Matric Entry) 135 37 27 199(c) Z (Non Matric Entry) 31 05 01 37

194 53 51 298

3.5. Details of various trades in ‘X’, ‘Y’ and ‘Z’ groups as indicated for each Service are contained in Army, Navy & Air Force Instructions on Pay of PBOR, promulgated by each Service post Vth CPC.

3.6. Proposal. With the technological advancement in modern warfare, wherein state of art weapons, sensors and equipment have been inducted into the three services, it becomes imperative that the men behind the machines are well trained, qualified, skilled and specialised to use the technology to its optimum level. Therefore, suitably qualified men need to be inducted in to the Armed Forces and thereafter trained accordingly. The archaic and old trade group structures need to be rationalized to suit the current and future requirements. To achieve this, the Trade and Pay Groups

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of Armed Forces personnel need to be rationalized and restructured so as to meet the service requirements and at the same time keep the men motivated and trained appropriately. Keeping the above in mind, the PBOR Trade/Pay group structure was rationalised as recommended by Vth CPC as brought out earlier, by the three Service HQs in 2005 and a report of the study was forwarded to MoD for approval. The main features of trade rationalisation and reduction of Manpower Classification of PBOR were:-

(a) Merger of similar trades and deletion of obsolete/duplicate trades.

(b) Initial Up-gradation of trades based on enhanced entry level educational qualification.

(c) Up-gradation of trades on acquiring higher qualification in-service.

(d) Introduction of New Trades.

(e) Merger of Similar Trades and Deletion of Obsolete/Duplicate Trades.After carrying out an in depth analysis of all the existing trades of PBOR

of the three services, similar trades have been merged and obsolete ones deleted. The details of such trades for Army, Navy and Air Force are placed at Appendix ‘A’, ‘B’ and ‘C’ respectively.

(f) Initial Up-gradation of Trades based on Enhanced Entry Educational Qualification. In addition to the existing trades in Group 'X' following trades in Group 'Y' are recommended for Up-gradation to Group 'X' and similarly from Group 'Z' to 'Y' on enhanced Entry Educational Qualification of Matric.

Army 'Y' to 'X' Army 'Z' to 'Y'

(i) Religious Teacher (i) Musician (Bands men)(ii) Catering JCO (ii) Chef (Cook all Cat)(iii) Breeding Overseer (iii) Artisan Wood Work(iv) Line Overseer (Carpenter)

(iv) Artisan Metallurgy (BlackSmith)

(v) Transcriber (v) Painter & Decorator(Chinese Language) (Painter)

(vi) AEC Instructor (vi) Tailor unit(vii) Steward (Mess Waiter)(viiii) Sowar Rider & Sowar GD(ix) Farrier(x) Animal and Store Handler(xi) Packer(xii) Security Guard

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Navy 'Y' to 'X' Navy 'Z' to 'Y'

- Nil - (i) Steward(ii) Cook (Officers)(iii) Cook (Sailors)(iv) Musicians

Air Force 'Y' to 'X' Air Force 'Z' to 'Y'

(i) Clk Accounts -Conversion Trade Musician (At 12 Yrs of Service)

(ii) Special Vehicle - Conversion Trade Operator (At 6-8 Yrs of Service)

(iii) Translator/ - Conversion TradeLegal

(iv) Cryptographer - Conversion Trade

(g) Up-gradation of Trades on Acquiring In-Service Higher Qualification. The PBOR of the three Services undergo rigorous in-house training throughout their career and are constantly trained to take on additional professional responsibility to meet the ever-increasing demand of technological up-gradation. It is rather unfair that even after acquiring suitable higher qualification in-Service, they remain in a lower pay group even though they perform at a higher level of responsibility. Therefore PBOR are recommended to be upgraded to Group 'X' from the revised Group 'Y' on fulfilling the following criteria:-

(i) A minimum of 08 Yrs of Service.

(ii) Successful completion of a Diploma of minimum one year duration, which is recognised by Central/State Education Boards/University, or minimum one year of organised training at the level of Unit or Formation which may be cumulative and not necessarily continuous and may include courses attended in a training establishment. Minimum duration of such training at any one time should be of four weeks. Recruit training will not form part of this qualification.

3.7. The number of trades, identified for up-gradation to Group 'X' from existing Group ‘Y’ on attaining in-Service higher qualification as enunciated above is as appended below:-

(a) Army ‘Y’ to ‘X’ - 60 trades - Appendix ‘D’ Refers

(b) Navy ‘Y’ to ‘X’ - 32 trades - Appendix ‘E’ Refers

(c) IAF ‘Y’ to ‘X’ - 08 trades - Appendix ‘F’ Refers

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(d) Introduction of New Trades. Due to the intensity of 'Information Technology' development and its application, Armed Forces have recommended introduction of 'Computer Operator' as a trade. As the trade is expected to be carved out of the existing strength, there would be no financial implication. The future requirement is estimated to be around 2000 personnel handling three basic aspects of IT as under:-

(i) Software Development and Database Management.(ii) Hardware - Installation and Maintenance.(iii) Networking.

3.8. Summary of Proposals on Rationalisation of PBOR Trade Structure. Keeping the above proposal on trade/pay group rationalisation of Trades, the final distribution of trades based on existing entry educational qualification would be as follows:-

Sl No

Group with Entry Qualification

No of Trades Total

Army Navy Air Force(a) ‘X’ (Diploma Entry) 33 08 25 66(b) ‘Y’ to X (In-Service

Up gradation 10+2)60 32 08 100

(c) ‘Y’ (10+2) 23 0 09 32(d) ‘Z’ (Matric/NMER) 08 01 0 09

124 41 42 207

3.9. The list of trades after rationalisation as proposed above in respect of Army, Navy and Air Force are placed at Appendix ‘D’, ‘E’ & ‘F’ respectively.

COMMON PAY SCALES

3.10. Existing Pay Scales . As has been brought out earlier, the Pay Scales of PBOR post Vth CPC were rationalised based on the Entry Educational Qualification. However, the pay scales of PBOR with the same entry qualification in the three Services are different, even though they may be performing similar jobs albeit in different Service. Further, in certain cases, the geographical area of duty is much more demanding, yet the pay scales of similarly qualified people varies depending on the Service a PBOR has enrolled in. This is particularly glaring in case of Army PBOR, and therefore, needs to be addressed. It has been the endeavour of Service HQ to evolve a ‘Common Pay Scale’ for the PBOR of the three Services, in line with what is admissible to Officers of the Armed Forces. The existing Pay scales admissible to Armed Forces PBOR w.e.f 10 Oct 97 post rationalisation of trades to 'X', 'Y' & ‘Z’ groups are placed at Appendix 'G'.

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3.11. Proposed Common Pay Scales for PBOR. Keeping the avowed aim of bringing parity in the Pay Scales of PBOR in the three Services based on entry level educational qualifications and similarity of job content, a ‘Common Pay Scale’ has been formulated with the minimum enhancement of 4.5 times and with increment at 3% of min of the scale as per Vth CPC norms. It is relevant to bring out that the existing pay scales have been revised to iron out the existing infirmities and anomalies. The main features of the ‘Existing Revised Pay Scales’ are as appended below:-

(a) Best Scales have been chosen in each pay group i.e in ‘X’, ‘Y’ & ‘Z’ groups. Length of scale and consequent number of increments have been changed to meet inter-service peculiar requirements.

(b) In ‘X’ group diploma scale of Rs. 5000/- has been awarded to Naik/ Art V and Cpl to address the anomaly post V CPC which resulted in wide spread dissatisfaction and unrest in the three Services.

(c) The pay scales of Cooks in the Civil Central Govt was revised to Rs. 3050-4590 (S-5) from what was granted by the V th CPC i.e. Rs. 2550-3200. They were also granted ACP at 12 & 24 Yrs of Service to S-7 scale Rs. 4000-100-6000 and S-9 scale of Rs. 5000-8000 respectively (V th CPC para 55.31) MoD letter PC-1 to 11 (15)/97 D (Civ. I) dated 28 Mar 01 is relevant. This change in turn has resulted in series of changes in the pay scale of PBOR in Group ‘Y’ & ‘Z’ to ensure relativity with revised pay scales of Cooks in the Civil side. Accordingly the scales in ‘Y’ & ‘Z’ groups have been revised to incorporate above changes. The revised existing pay scales and proposed pay scales of PBOR are as appended below:-

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PROPOSED COMMON PAY SCALES VI th CPC - PBOR

Sl No

RANKSARMY NAVY AIR FORCE

EXISTING REVISED

PAY SCALE

NO OF INC

PROPOSED VI CPC PAY SCALE (4.5 TIMES OF EXISTING)

REMARKS

X GROUP

1 SEP APP AC 3675-85-4950 15 16600-500-241002 - - LAC 4025-100-5525 15 18100-540-262003 NK ART V CPL 5000-100-6500 15 22500-680-32700 Dip Scale4 HAV ART IV SGT 5500-175-8125 15 24800-750-360505 - ART

III – I- 5625-175-9125 20 25400-760-40600

6 NB SUB

CHIEF ART JWO 6500-200-9700 16 29300-880-43380

7 SUB MCPO II

WO 6750-225-10125 15 30400-910-44050

8 SUB MAJ

MCPO I

MWO 7450-250-10950 14 33600-1000-47600

Y GROUP

1 SEP SEA II AC 3325-70-4375 15 15000-450-217502 - SEA I LAC 3650-70-4700 15 16500-500-240003 NK LDG CPL 4075-100-5575 15 18300-540-26400 Due Up

gradation of Cooks in Civil side4 HAV PO SGT 5050-100-6550 15 22700-680-32900

5 NB SUB CPO JWO 5650-175-9325 21 25500-770-416706 SUB MCPO

IIWO 6600-200-9600 15 29700-890-43050

7 SUB MAJ MCPO I MWO 7000-225-10150 14 31500-950-44800

Z GROUP

1 SEP SEA II AC 3050-55-3875 15 13800-420-201002 - SEA I LAC 3080-60-3980 15 13900-430-203503 NK LDG CPL 4025-85-5300 15 18100-540-26200 Due Up

gradation of Cooks in Civil side4 HAV PO SGT 5000-100-6500 15 22500-680-32700

5 NB SUB CPO JWO 5200-125-7700 20 23400-700-374006 SUB MCPO II WO 6500-200-9500 15 29300-880-42500

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7 SUB MAJ MCPO I MWO 6750-225-9900 14 30400-910-43140

Notes :- (a) Existing revised scale formulated after correcting the existing infirmities/ anomalies.

(b) Recommended Pay Scales @ of 4.5 times the existing revised scale have been proposed.

(c) Increments granted @ 3% of starting pay scale.

3.12. Disparity Ratio. The Vth CPC, whilst evolving the pay scales of Central Govt employees had adopted a disparity ratio of 1:10.19 between the minimum and maximum pay scale. They had however maintained that the disparity ratio needs to be increased but were constrained on account of capacity of the Govt to pay its employees. It is felt that the VI th CPC needs to review the disparity ratio de-novo and consider adopting a factor of 1:12 between the minimum & maximum salaries of the Central Govt. This is considered appropriate, because those in the higher pay ranges are required to pay income tax, whereas those in the lower ranges are not affected by income tax.

Assured Career Progression

3.13. Existing Position. It may be recalled that the Vth CPC had granted at least two pay promotions under the scheme of Assured Career Progression (ACP) to all Central Govt Employees at 12 and 24 years of Service. The PBOR of the Armed Forces were granted the ACP at 10 and 20 years of Service. The Chiefs of Staff Committee (COSC) had subsequently raised the issue of ACP of the PBOR with the Govt for it being inequitable on the grounds that the basic terms of engagement for PBOR is only 17 years of colour Service, after which the PBOR, proceeds on retirement. Therefore, the ACP of 10 and 20 years was not justifiable as most of the PBOR retired before completing 20 years of Service.

3.14. Proposal. Keeping the above in mind, it is now proposed that the ACP for the PBOR of the three services be granted at 08 Yrs to Naik/Equivalent and 12 Yrs service to Havildar/Equivalent. This would be only fair and equitable besides being an important motivation factor for the PBOR, particularly in view of the steep pyramidical rank structure wherein promotions to higher ranks are severely restricted. This would also ensure that PBOR retiring at a young age due to truncated career do not suffer on account of meagre pension, as has been the case so far.

Grant of Minimum Notional Increment of Pay on Promotion for PBOR

Background.

3.15. GOI, Dept of Pers & Trg Notification No. 1/6/97 Estt No. (Pay – I) stipulates that on promotion of a Govt Employees, the initial pay is to be fixed at the stage next above

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the notional pay arrived at, by increasing his pay in lower post by one increment at the stage from which such promotion occurred, or minimum benefit of Rs.100/- whichever is higher. This was effective from 01 Jun 1996 and applicable to all Central Govt Departments. Whereas in case of PBOR, the notional increment subject to minimum benefit of Rs.100/- could not be applied in totality since specific Govt Orders was not issued due oversight.

3.16. Present Position. Consequent to Govt order, all Central Govt Civilian employees are given minimum benefit of Rs. 100/- on promotion. This has not been done in respect of Armed Forces Personnel due to absence of specific instruction and oversight. In effect, the PBOR of the rank of Havildar & equivalent and below get increment of pay lesser than Rs. 100/- on promotion. It is relevant to mention that the provision of grant of notional increment of Rs. 100/- on promotion to the PBOR under the ACP scheme has been provided for in the GOI, MoD letter No. 14 (I)/99-D (AG) dated 07 Aug 2003, thus accepting in principle the applicability of the said provision. Yet, despite taking up a case for amending the relevant AI & NI and AFI for the Armed Forces PBOR for inclusion of this provision, the same was turned down by the MoD/MoF on the grounds that the specific instruction for PBOR were issued without consultation of MoF. This anomaly, is therefore being addressed to the VIth CPC.

3.17. Proposal. It is therefore proposed that necessary provisions be made for granting minimum notional increment of pay on promotion in respect of PBOR of the three services, as provided for all Civilian Central Govt Employees.

Abolition of Recruits Pay

3.18. Existing. As per the existing regulations, recruits receive stipend during the training period at the prescribed rates. However, on successful completion of training, they are granted pay with retrospective effect from the first day of training at the minimum of pay scale of trade, to which they stand allotted, less stipend already paid. Therefore effectively they are paid the starting pay of the trade/pay group, albeit retrospectively.

3.19. Proposal. Since the PBOR are enrolled into `X’ `Y’& `Z’ groups based on educational entry qualification, the admissible Pay Scales are accordingly granted as per the ‘’X’ ‘’Y’ ‘Z’ groups. Therefore the rationale of granting a stipend has no logic to it. Further, the reckonable Service of PBOR is counted from the date of joining the Training Establishments of the respective service, and the trainee PBOR are governed accordingly under the Army, Navy and Air Force Acts. The Civil Central Govt employees are granted full pay on joining a service and are not paid any ‘’Stipend’. The grant of ‘’Stipend’ and subsequent conversion to ‘Pay’ with all attendant benefits thus has no financial implications and therefore recommended to be abolished. It is proposed that the recruits be granted the ‘Pay Scales’ of the rank in which inducted. Finally, grant of ‘Stipend’ as against, Pay, will definitely lift the morale and motivation level of PBOR, without any additional financial implications to the Govt.

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Extra Duty Allowance

3.20. Existing. Presently in the Army, Extra Duty Allowance is paid to the regular ranks of Naik & Havildar in certain appointments in Peace & War establishments. This allowance was paid under the nomenclature of `Appointment Pay’ till IVth CPC. The Vth CPC however rechristened this as an ‘Allowance’ and granted the same to the Army PBOR for undertaking additional responsibility in carrying out the administrative work. The rates granted as ‘’Extra Duty Allowance’ to Army personnel post Vth CPC are as follows:-

Appointment Extra Duty Allowance (PM)

(a) L/Nk, L/Hav, CHM, Rs 50/- pm

(b) CQMH, RQMH, BQMH Rs 75/- pm

(c) BHM, RHM Rs 80/- pm

3.21. Proposal. Since additional responsibilities are also entrusted to PBOR of Navy & Air Force as well, it is proposed that following rates of Extra Duty Allowance’ be granted to PBOR of three Services.

Appointment Extra Duty Allowance (PM)

(a) L/Nk, L/Hav, CHM/ Rs 200/- PMequivalent in Navy & Air Force.

(b) CQMH, RQMH, BQMH/ Rs 300/- PMequivalent in Navy & Air Force.

(c) BHM, RHM/ equivalent Rs 350/- PMin Navy and Air Force.

Extension of Classification Allowance

3.22. Existing Position. The Classification Allowance is presently admissible only to Army PBOR on attaining certain trade related qualifications in each group. It is relevant to mention that 50% of ‘Classification Allowance’ is reckoned for pension. The present rates of this allowance are:-

Group CI 4 to CI 3 CI 3 to CI 2 CI 2 to CI 1

‘X’ - Rs. 60/- PM Rs. 60/-PM

‘Y’ Rs. 50/-PM Rs. 50/- PM Rs. 50/-PM

‘Z’ - Rs. 20/- PM Rs. 20/-PM

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3.23. Proposal. In view of the proposal for grant of Common Pay Scales to the PBOR of the three services, the existing ‘Classification Allowance’ presently admissible to only Army PBOR on attaining certain professional classification, needs to be extended to Navy & IAF PBOR to maintain parity in overall compensation package in terms of Pay, and admissible Pension, as currently 'Classification Allowance' @ 50% is reckoned for calculation of Pension for Army PBOR. The recommended rates @ 4.5 times the existing rates are as proposed below:-

Group CI 4 to CI 3 CI 3 to CI 2 CI 2 to CI 1

‘X’ - Rs. 270/- PM Rs. 270/-PM

‘Y’ Rs. 225/-PM Rs. 225/- PM Rs. 225/-PM

‘Z’ - Rs. 90/- PM Rs. 90/-PM

Pay Scales For Hony Commissioned Officers

3.24. Existing Position. At present Hony Commission is granted to the PBOR to selected JCOs and equivalents in the last year of service or after retirement. As per the existing regulations, the Hony Commission in the rank of Lieutenant/Sub-Lieutenant/Flying Officer and Captain/Lieutenant/Flight Lieutenant, Subedar Major and Naib Subedar is granted. The existing fixed Pay granted to Hony Commissioned Officers of the three Services is as follows:-

(a) Hony Lieutenant and equivalent - Rs. 10,500/- PM

(b) Hony Captain and Equivalent - Rs. 10,850/- PM

3.25. Proposal. In view of the proposed Common Pay Scale of PBOR, the proposed pay for Hony Commissioned Officers is as follows:-

(a) Hony Lieutenant and equivalent - Rs. 48,500/- PM

(b) Hony Captain and Equivalent - Rs. 50,000/- PM

(c) JCOs, if granted Hony Commission after retirement, be awarded pensionary benefits of the Hony Rank. Hon Lt and equivalent, promoted to Hon Captain and equivalent, be granted Pensionary benefits of the rank.

(d) JCOs granted Hony rank of Sub Maj be given the pensionary benefits based on the top of the Pay Scale of the Sub Major, of the Pay group of the PBOR.

(e) Havildar granted Hony Rank of Naib Subedar on retirement be granted pensionary benefits of top of the Scale of the rank of Naib Subedar, in the relevant pay group.

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(f) JCOs/Equivalent, who are granted Hony Commission in service be granted Hony Commission rank Pay Scale and MSP as appropriate. Further, they should be allowed to continue to be entitled to facilities of Free Accommodation and associated Furniture, Water & Electricity charges as they continue to draw the entitlement of accommodation, as per scale applicable to PBOR and not officers.

Good Service/Good Conduct/Badge Pay

3.26. Background. The PBOR of the three services are granted the Good Service Pay to maintain high degree of discipline, good conduct and professional competence on completion of certain specified service. Good Service Pay has its linkage to the disciplinary code expected of PBOR, and is subject to withdrawal of the same on disciplinary grounds. To amplify, PBOR can be punished for any disciplinary lapse by withdrawing the Good Service Pay and accordingly the same is entered in the Service Records of PBOR and the uniform embellishment is taken off accordingly, to signify such punishment. Thus Good Service Pay is an integral part of Services ethos, discipline and Conduct of the PBOR. The Vth CPC in their recommendations has proposed grant of a ‘Performance Related Increment’ in place of Good Service Pay to selected percentage of personnel to all Central Govt. employees. The V th CPC had opined that this would bring about uniformity amongst all Central Govt. employees, and would be beneficial in terms of financial benefits and not be restricted to specific ranks as at present for Good Service Pay. The Govt. did not accept the recommendations of the Vth CPC related to the ‘Performance Related Increment’ for Central Govt employees. The Armed Forces however, brought out the above rationale for continuance of Good Service Pay for it being integral to the Service rules, its linkage with uniform Regulations and disciplinary code. The Govt. taking due note of Service HQ rationale on the provisions of grant of Good Service Pay, restored the same, by doubling the admissible rates, as was the Vth CPC norm.

3.27. Existing Rates of Good Service Pay. Presently the PBOR are granted Good Service Badge Pay at three stages for maintaining the requisite conduct and discipline. The existing rates of Good Service pay in the three Services are as follows:-

(a) Army

(i) Naik/Lance Hav/Lance Dafadar

Rs. 32/- PM after 3 Yrs of Service as Naik/Lance Hav/Lance Dafadar and further Rs. 32/- PM after another 3 Yrs of service. PBOR continue to draw GCB on Promotion to Hav.

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(ii) Dafadar/Havildar Rs. 32/- PM after each period of 3 yrs of service subject to maximum of Rs. 96/- PM after 9 yrs of service. GCB pay is not admissible to JCOs.

(b) Navy & Air Force Upto the rank of PO/SGT

Rs. 40/- PM after each 4 yrs of completed service subject to maximum of Rs. 120/- PM after 12 years of service. GCB pay is not admissible to Chief Petty Officer and equivalent.

3.28. Proposals. Keeping the above rationale of grant of Good Service Pay in its correct perspective, it is proposed to continue the grant of Good Service Pay, at a uniform period of 4 yrs, 8 yrs and 12 yrs for Ist, IInd & IIIrd Good Service Pay to the PBOR of the three services with no restriction to the rank of PBOR, as the discipline expected of the PBOR is part of service ethos for life. It is therefore, proposed that Good Service Pay/Badge Pay should be revised as follows:-

(a) The first rate of Good Service Pay should be awarded to all ranks of PBOR of three Services on completion of 04 Yrs of colour service @ Rs. 180/- PM.

(b) The Second and Third rates of Good Service Pay should be awarded to all ranks of PBOR of three Services, on completion of 8 yrs and 12 yrs of colour service @ Rs. 180/-PM for each Good Service Pay subject to maximum of Rs. 540/- PM which would continue throughout his service as PBOR.

(a) The Good Service Pay is recommended to be made applicable to Defence Security Corps on the same terms and conditions but @ 75% of rates admissible to Armed Forces.

Pay Structure of DSC Personnel

3.29. Existing Position. The DSC personnel are currently placed in ‘Ý’ group scale for those belonging to the clerical cadre and all others in the general duty cadre, are placed in ‘Z’ group.

3.30. Proposals. The existing system of the pay grouping of the DSC personnel is considered fair and equitable and accordingly they are proposed to be placed in Group ‘Ý’ for clerical cadre and Group ‘Z’ for General Duty DSC personnel in the proposed Common Pay Scale, with the grant of MSP appropriate to the Rank, as proposed for PBOR of the Armed Forces.

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Pay Scales to NCS (E) of Air Force

3.31. Existing Position. The NCs (E) are presently granted the following pay scales:-

Rank Pay Scale Granted Remarksby V CPC

(a) NCs (E) – 2550-55-2660-60-3200 (Revised to S-5 scale for Cooks in the Civil side as also for Civ. Cooks in the Army & Air Force to Rs.3050-75-3950-80-4590 vide Govt letter No PC-Ito 11(15)/97/D(Civ. I) dated 28 Mar 01 addressed to COAS and CAS. Further, ACP to S-7 and S-9 scales i.e Rs. 4000-100-6000 and 5000-150-8000 respecti- vely, was granted to Civ. Cooks at 12 & 24 Yrs of Service (Vth CPC report para 55.31 refers).

(b) NCs (E) - 2610-60-3150-65-3540 (Revised ACP at S-7 scaleTindal as brought out above).

(c) Head - 2650-65-3300-70-4000 (Revised ACP at S-9 scaleTindal as brought out above).

3.32. Proposal. The proposed Pay Scales of NCs (E) are as follows:-

(a) NCs (E) - Replacement scale of S-5

(b) NCs (E) Tindal - Replacement scale of S-7

(c) Head Tindal - Replacement scale of S-9

(d) The NCs (E) be granted Two ACPs at 10 & 20 years respectively.

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CHAPTER IV

PAY OFFICERS

“Soldiering is a profession that has to be entrusted to committed men. Without good soldiers our country will become vulnerable to enemy designs.”

- Julio Ribeiro

INTRODUCTION

General

4.1. Defence Service Officers are bestowed upon multi dimensional responsibilities by the nation. Be it conventional or sub-conventional operations, requirements of internal security, maintenance of law and order when requisitioned, or during calamities and emergencies, the officers are expected to lead, decide, execute and ensure that dictates of the Govt are implemented successfully. In effect, they become the flag bearers of cementing and ensuring the unity of the nation. A tall order is, thus, entrusted to the Defence Service Officers – a task in which they have never failed despite deprivation, inadequate compensation, poor promotional prospects, disruption of family life etc.

4.2. Uniqueness of responsibilities, challenges and uncertainty faced by the Defence Service officers is well known to the `Nation’. Promotion prospects of officers cannot match that available to their civilian counterparts, due to its hierarchical structure. Hence, pay structure which caters for their added responsibilities and status in the society merits sincere consideration.

4.3. It would be pertinent to highlight, that a sound pay structure rests upon two pillars of comprehensibility and adequacy. In respect of defence services, the peculiarities of cadre structure, lack of promotional avenues and challenges of service must be addressed to make the pay structure comprehensive and adequate. Equation and alignment of services officers pay scales with civil pay scales has been the cause of inequality and inadequacy. While certain levels of disparity due to cadre structure is understood, great disparity, as it exists at present, has long term ramifications on the morale, due to lowering of status and post retirement benefits. It would be incorrect to assume that such disparities would not have any adverse effect on leadership and effectiveness of the Defence Services, which in turn will affect the demands of national security immensely. Inadequate pay compensation, coupled with difficult service conditions has been noted by the youth of the country, resulting in a fall in the standard of intake of officer cadets. Unless incentives, in consonance with aspirations of the youth of the country are introduced, the intake standards of young officers will keep deteriorating with undefinable leadership crisis among decision makers of tomorrow. When the Indian Defence Forces, are at the threshold of high level modernisation, it should be a matter of

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concern as to how well these highly expensive resources can be managed optimally. It is, therefore, critical to provide a coherent salary structure, taking care of aspirations, sacrifice, 24 x 7 duty and reward performance, length of service, by suitable financial incentives.

Analysis of Existing Pay Structure

4.4. Existing pay structure in the Defence Services is slave to the civilian pay structure, without consideration for length of service. While Group `A’ Officers selected through UPSC begin their career at lower basic pay, almost all in the civil bureaucracy reach SAG (Jt Secy) scale between 16 and 21 years of service. Even a service like Indian Defence Accounts Service (IDAS), which is primarily a support service for the defence forces has officers promoted to SAG scale in 20 years, which adversely affects the working relationship and morale of Defence Service Officers. Criticality of this anomaly, if analysed, will bring out the serious impact this has on the officer cadre in defence services. It is therefore, a matter of great importance that military salaries not be hostage to existing civil scales.

PREAMBLE AND INFIRMITIES

Preamble

4.5. The Defence Services comprise three distinct Services, namely the Army, Navy and the Air Force who have their own induction profile, training, organisation, promotion prospects and cadre structure, meeting the requirements of respective Service. The structure of the Officer Cadre is unique. It is based on operational requirements and the hierarchical structure of field formations. Flexibility in the rank structure is limited and career progression follows vacancy patterns in each rank. These features starkly distinguish the military officers’ cadre from the civil services and need to be borne in mind, while evolving a pay structure. The inherent slow career progression of a Service Officer needs to be compensated adequately and pensionary benefits should cater for early retirement, in order to keep the defence services young. Additionally, emoluments and benefits available to the support cadre must be, first of all, attractive enough for them to take up a career in the Defence Services and thereafter enable resettlement in a second career outside the Services. The peculiarities of the Defence Service Officers cadre and pay structure are given in succeeding paragraphs.

4.6. Time Based Promotions. Promotion upto the rank of Lt Col / Equivalents is time based, as under:-

(a) Capt / Equivalent - on completion of 2 years of service.(b) Maj / Equivalent - on completion of 6 years of service.(c) Lt Col / Equivalent - on completion of 13 years of service.(d) Col (Time Scale) / Equivalent - on completion of 26 years of service

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4.7. Select Ranks. Promotions above the rank of Col / Equivalent are select. The selections are strictly vacancy based. The number of officers empanelled for promotion are based on the vacancies available. It is in these select ranks that a major departure in career prospects vis-à-vis the civil services emerges. Thereafter the disadvantage becomes more and more pronounced, as only a miniscule number of officers can hope to get promoted to senior ranks. The glaring disparity can be suitably brought out by drawing a parallel with civil services. While a Civil Services officer enters the SAG scale between the 16 th and the 21st years of service, very few Defence Services officers do so only after 33 years of service and majority of them retire at lower ranks, much earlier.

4.8. Deficiency of Officers. All the three Services have deficiencies of officers in varying degrees. Whilst the Army has the largest deficiencies, the other two Services too have significant shortages, specifically in the specialised cadres. The deficiency in the Army is to the tune of 27%, in the Navy 14.1% and 13.5% in the Air Force. No other Govt service has to make do with such large deficiencies in a Group ‘A’ cadre. Of late, these deficiencies have become a major cause of concern. Since these are in the ranks of Majs / Equivalents and below, it has a significant bearing on the unit’s operational and administrative effectiveness. The units have deficiencies of almost 40%; leading to abysmally low officer to man ratios resulting in operational, administrative and, in some cases psycho-social problems. The recent spate of incidents of fratricide and suicide is indicative of such a trend and can be attributed to this factor.

Infirmities

4.9. Infirmities that emerge due to the issues discussed above, specifically related to the cadre and pay structure of the Defence Services are discussed in subsequent paragraphs.

4.10. Inability to Attract Talent. The unviable cadre structure, bleak promotional prospects and hard service conditions have resulted in shortfall of suitable intake and further lead to deficiencies of officers. It must be a matter of national concern that there has been steady erosion in the quality of intake in all the three services. Data from Services Selection Board, Bhopal which selects officers for the Army and Navy, given below, adequately proves this observation. The quality of intake especially for the Direct Entry, Short Service Commission Entry and Technical Entry cadets is much lower compared to the NDA Entry. Thus, it can be inferred that graduates of substance, who could be our future military leaders, do not wish to take Defence Services career as an option. Such a state will have long term serious impact on the security of the Nation. Our proposal to have the training period counted for promotion and pension needs to be seen in the light of this fact.

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QUALITY OF INTAKE - I

05

1015202530

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

YEARS

PASS

%

NDA DE OTATECH ACC WSES

SSB BHOPAL

4.11. Inability to Retain Talent. The problem of attraction at one end of the spectrum notwithstanding, there exists a serious problem of retention too. There has been 68.91% Compounded Average Growth Rate rise in applications for premature retirement from the Defence Services between 2002 and 2007. Thus, there appears to be a correlation between the economic growth of the country and the officers wishing to quit the service. Due to an inadequate compensation packet for highly disturbed and traumatic domestic life, the number of officers seeking premature retirement is ever increasing. Our proposals for a realistic compensation factor and increased disparity ratio should, to an extent, arrest the flight of human capital from the services.

PMR APPROVED TILL COL

407

312

257

312

50

0

50

100

150

200

250

300

350

400

450

2002 2003 2004 2005 2006

CAGR 68.91 %

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4.12. Inflexible Rank and Command Oriented Cadre Structure. The three Services being highly command and rank oriented, the distribution of the officer cadre is substantially larger in lower ranks resulting in a pyramidical structure. The differential in percentage of officers in the higher select ranks in the three services is marginal, if at all. This, however, is glaringly loaded against the defence services when compared to any other civil Govt service. The juxtaposition between the defence services officer cadre structure and the Civil Services cadre structure given below, highlights the disparities between the two:-

4.13. Bleak Promotional Prospects. Of a batch of 100 officers, approximately 37 become Cols, of these at best 12 may become Brigs, 3 can hope to become Maj Gens and there is only 0.13% chance that an officer in the entire batch will become a Lt Gen. The situation in the Air Force is even bleaker as only 26% officers go past the first hurdle and attain the rank of Gp Capt. Perhaps, no other service in the country has bleaker promotional prospects than the Defence Services. As a result, 93% of the defence services officers retire in the rank of Lt Col / Equivalents and below due to lack of vacancies. Promotion prospects of Army, which equally apply to the Navy and Air Force, are as under:-

RANK AUTH % OF AUTH HELD DEFICIENCYGen 1 0.002% 1 27 % in the

ranks of Maj and below. Surpluses of Lt Col and Col taken into account

Army Cdr 8 0.017% 8Lt Gen 63 0.13% 56Maj Gen 218 0.482% 203Brig 919 2.03% 868Col 3220 7.13% 4306Lt Col 4927 10.91% 11187Major & Below 35790 79.27% 18748Total 45146 100 35377

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IAS & Armed Forces Cadre Structure

31.54

2.037.13

79.27

14.63

4.43

34.36

15.02

0.0210.91

0.482 0.13 0.017 0.0020

10

20

30

40

50

60

70

80

90

CABSECY

SECYADDLSECY

JSSGJAG &BELOW

GENARMYCDR

LTGEN

MAJGEN

BRIGCOLLTCOL

MAJ &BELOW

IASARMY

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4.14. Stagnation in Select Ranks. The interposition of 10 pay scales between the minimum and maximum of the Defence officers’ pay scales, as against the 6 civil services pay scales, result in overlap of services pay scales with no appreciable difference between the scales of various ranks. The problem of stagnation is further exacerbated by limiting the number of increments on grounds of parity with Civil Services pay scales. As a result, services officers lose out on two counts. Firstly, inadequate compensation for length of service and secondly, lack of requisite number of increments. A Col / Equivalent spends almost 10 - 12 years in that rank and yet he is given only five increments. A Brig / Equivalent with just three increments, in his scale stagnates on attaining that rank and if not promoted to Maj Gen / Equivalent remains on stagnation for the rest of his service. This is gross injustice to the select and flag ranks. Besides increasing the length of scale, the issue of stagnation can also be addressed by increasing the existing disparity ratio. This will create the space for interposing more number of services pay scales. It is to address this issue, that we have proposed to lengthen the scales of Lt Col, Col and Brig / Equivalent. The following chart highlights the problem of stagnation in the services.

LENGTH OF SCALE : STAGNATION

9

5

3

3

3

2

8

3

0 5 10 15 20

LT COL

COL

BRIG

RANK

S

YEARS

INCREMENTS

STAGNATION

STAGNATION IFNOT PROMOTED

4.15. Pay Band : Senior Officers. Lt Gens/ Equivalent are entrusted with the responsibility of command of formations geographically spanning several states. They are responsible for operations, intelligence, logistics, human resource management and command of more than 50,000 to 60,000 personnel. In short, their span of control is multi disciplinary, multi dimensional and spread over a wide geographical area. They are the highest level operational commanders and form a major link between the tactical and the strategic dimensions of modern day warfare. In the insurgency prone States, they are the instruments for ensuring that the writ of the Govt runs. Given the need to compensate their length of service and span of control, we have proposed to place the Lt Gens/ Equivalents in higher scales.

4.16. Inadequate Compensation for Length of Service. The Defence Services cannot have a cadre structure similar to that of the civil services. Hypothetically, based on its authorised officer strength, the Army would have 14,239 posts in Maj Gen’s (JS) rank, 6,604 in Lt Gen’s (AS) rank and 1,999 in the rank of Army Commander (Secy) to

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draw parity with the civil services. Such a proposition would be preposterous and is not being contemplated. However, it is in the realms of feasibility to compensate defence services officers for the length of service by way of pay promotions. Presently, the Civil Services pay structure is applied without any modification to the Defence services based on existing relativities while ignoring the length of service. The services’ demand for ‘Equal Pay for Equal Length of Service’ is not violative of the established Warrant of Precedence as the other determinant of status equation i.e. span of control can still be applied to maintain existing relativities. Our proposals for merging the rank pay, lengthening the scales, higher pay scales for senior ranks and grant of pay promotion need to be seen in light of this.

4.17. Salary Differential. In the 16th year of service or thereabouts, a Civil Services Officer is catapulted from the Selection Grade to SAG. In pay terms, he moves from the stage of Rs 16,300/- to Rs 18,400/-; a jump of Rs 2,100/-. This promotion also boost his status. His counterpart in the defence services, however, continues to languish in lower scales for another 12 – 16 years. This results in lower emoluments for the services officers even if promoted to the ranks of Col / Brig and Equivalent, which lie between the Selection grade and the SAG. The following chart clearly brings out the inflection point at which there is a major departure between the civil and defence services salary structure:-

SALARY DIFFERENTIAL

0

5000

10000

15000

20000

25000

30000

LT

CA

PT

MA

J

LT C

OL

CO

L

BR

IG

MA

J G

EN

LT G

EN

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Services OfficerIAS

Junior Adm Grade10 - 12 Years

Junior Time Scale0 - 4 Years

Senior Time Scale5 - 9 Years

Selection Grade13 - 16 Years

Senior Adm Grade17 - 15 Years

Higher Adm Grade26 - 30 Years

Secy31 - 33 Years

INFLEXION POINT

4.18. Status and Equity. The definition of Rank Pay, though comprehensive, is silent on the issue of status and equity. Exploiting this loophole the DRDO, followed by the MES, IDAS and the AFHQ Cadre, got the MoD approval to exclude the Rank Pay

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for the purpose of establishing status and relativity. The MoD approved the same without examining the issue in totality and without taking the Services into confidence. The consequent demand of the Services’ for merger of rank Pay and to have it counted for relativity and status equation is still languishing with the MoD. As a result, the status and equity of Brig / Equivalent and below has been seriously eroded by the continuation of Rank Pay. The Services’ demand for merger of Rank Pay was also upheld by the High Level Committee headed by the then Defence Secy. However, the Group of Officers, headed by the then Cabinet Secy, recommended the continuation of the Rank Pay as it was felt to be an effective mechanism for grant of acting ranks. Such a stand needs to be reviewed as officers even prior to the IVth CPC, when Rank Pay was not in vogue, used to be granted acting ranks. Our proposal to merge the rank pay with the Basic Pay addresses this issue.

Principles Governing The Pay Structure

4.19. The peculiarities of the cadre structure, differential pay progression, length of service and scales coupled with bleak promotion prospects demand a de novo look at the way salaries of the Defence Services are structured. Adherence to existing methods, which do not reflect the current ground realities, will have serious implications on the officer cadre structure of the Services. The Defence Services need motivated young blood, hence the principles of pay structure need to address the concerns stated above. 4.20. Deduction. With the foregoing analysis it can be deduced that the pay structure in the Armed Forces be based on the following principles:-

(a) It should be able to attract and retain talent of requisite calibre.

(b) It should meet the aspirations of the majority of personnel to serve in the defence services with selfless loyalty and integrity in the emerging external and internal threat scenario.

(c) The emolument structure should provide adequate compensation to shoulder higher responsibility, merit and length of service. The pay scales need not be held hostage to civilian pay scales.

(d) Sustain motivation to tap the rich experience of the non select cadres by providing adequate incentive.

(e) It should be responsive to socio economic environmental changes in consonance with economic growth and associated improvement in quality of life. It also should conform to wage structure across all employment sectors in India.

(f) The pay structure should compensate for the erosion in value of the rupee.

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(g) It should provide compensation for the special conditions, peculiarities and ethos of Military Service.

Proposals

Proposal: Merger of Rank Pay

4.21. Background. Rank Pay has always been part of Basic Pay since introduction of the New Pay Code (NPC) – 1950 and counted for establishing relativities. However, it was only during the period from 1986 – 1996 i.e., during the currency of IVth CPC that it was shown separately since the integrated pay scales were in vogue during that period. The MoD, in agreeing to the proposal of DRDO, MES, AFHQ Cadre, IDAS etc for excluding the Rank Pay for establishing status and equation has placed the services in a disadvantageous position. Whereas it is natural for service conditions to improve; it is unfair that the status and equation of the defence services were lowered unilaterally, in the aftermath of Kargil operations where the defence services shed much blood for defence of the nation.

4.22. Proposal. It is proposed to merge Rank Pay with the scale of Pay. The replacement scales derived by VIth CPC be based on the current ‘Basic Pay’ plus ‘Rank Pay’. The modified scales are proposed to be as under:-

Rank Scale Rank Pay

Modified Scales With Rank Pay

MergedCapt / Equivalent 9600 – 300 – 11400 400 10000 – 325 – 11950Major / Equivalent 11600 – 325 – 14850 1200 12800 – 375 – 16550Lt Col / Equivalent 13500 – 400 – 17100 1600 15100 – 400 – 18700Col / Equivalent 15100 – 450 – 17350 2000 17100 – 450 – 19350 Brig / Equivalent 16700 – 450 – 18050 2400 19100 – 450 – 20450

4.23. Allied Proposals.

(a) Applicability of FR 22 (I) (a) (i). In the light of the proposal to merge Rank Pay with Basic Pay it is also proposed to regulate the pay fixation of officers on promotion as per FR 22 (I) (a) (i) whereby they are given the benefit of at least one increment in the lower scale. This is essential as presently the benefit of FR 22 (I) (a) (i) is applicable only to Maj Gens and above since they are not in receipt of Rank Pay.

(b) Higher Incremental Value. As a result of separate rank pay, the incremental value of Capt and Major and Equivalent was fixed lower. In the light of merger of rank pay the incremental value of Capt and Major and Equivalent is proposed to be increased to Rs 325/- and Rs 375/- respectively at par with Civil services pay scales.

4.24. Justification. As per the current definition, Rank Pay is counted for all purposes including pension. However, the definition is silent on its applicability for

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status and equity. As a result, service officers are placed at a disadvantage vis-à-vis their Civil Service counter parts. A large number of Annual Confidential Reports are

pending in the Military Secretary’s Branch of Army HQ for want of resolution of this matter. The contentious issue has also been highlighted by Maj Dhanapalan’s court case currently being heard in the Supreme Court. The demand for merger of Rank Pay with Basic Pay is in keeping with the aspirations of the officer cadre to mitigate the injustice meted out to them. In addition, the demand is also based on the following considerations:-

(a) Notional depression of service officers’ pay scales and consequent perception of they being lower in pay scales, as compared to their civilian counterparts.

(b) Lower incremental value as a result of lower starting scale.

(c) Disadvantages in ‘Pay based Entitlements’.

(d) Iniquitous status equation of Brigs and below, as a result of exclusion of Rank Pay.

Proposal: Enhancement of the Length of Scales of Lt Col, Col and Brig/ Equivalent

4.25. Background. Presently Defence services officers in the rank of Lt Col, Col and Brig / Equivalent are stagnating for varying lengths even before being screened for promotion, as under:-

(a) Maj/ Equivalent are getting promoted to the rank of Lt Col / Equivalent in the 14th year of service. Some of the officers due to peculiar cadre structure get promoted to the rank of Col / Equivalent only in the 24th year and the 9 increments in the scale, therefore, are insufficient. As a result they stagnate even before they are screened for promotion.

(b) Col /Equivalent is the first select rank in the Defence Services while Brig / Equivalent is the first flag rank. Due to a steep pyramidical structure, Cols remain in this rank for about 10 - 12 yrs before being considered for promotion. With just five increments, the officers stagnate at top of the scale for almost seven years due to organisational constraints. As a result the officers go beyond the top of the scale of the next higher rank i.e., Brig / Equivalent even before they are promoted.

(c) The Brig / Equivalent scale with just three increments has proved to be inoperative as he earns none of the three increments.

4.26. Proposal. It is proposed to enhance the length of scales of Lt Col, Col and Brig from the current 9, 5 and 3 increments to 10, 11 and 9 respectively. The modifiedexisting scales are proposed to be as under:-

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Rank Existing Scale with

Rank Pay MergedNo of Incre-ments

Proposed Modified Scales in Existing

Scales

No of Incre-ments

Lt Col / Equivalent

15100 - 400 - 18700

9 15100 - 400 - 19100 10

Col/ Equivalent

17100 - 450 - 19350 5 17100 - 450 - 22050 11

Brig/ Equivalent

19100 - 450 - 20450 3 19100 - 450 - 23150 9

4.27. Justification. The justifications are as under:-

(a) Lt Col / Equivalent have 9 increments. Earlier Maj / Equivalent were promoted to the rank of Lt Col / Equivalent between 16 th and 20th years of service and the 9 increments were sufficient. However, with promotion to Lt Col/ Equivalent in the 14th year of service, the 9 increments are insufficient as presently he spends more than nine years in this rank before being considered for the rank of Col / Equivalent. Hence, there is a need to increase the length of his scale from the current 9 to 10.

(b) In the case of Col / Equivalent too there is a need to give due regard to the first select rank and promote merit. Cadre constraints force a Col to remain in the rank for 10 -12 years. Since he has not been superseded and is holding a select rank, there is need to increase the length of his scale from the current 5 to 11.

(c) Presently the scale of Brig/Equivalent is totally inoperative. A Col promoted to the rank of Brig, due to stagnation in the rank of Col, crosses the top of the scale of the Brig in the Col’s rank itself. Brig being the first flag rank and the second select rank, there is a need to increase the increments from the current 3 to 9.

(d) These being select ranks, there is a need to promote professionalism and merit by giving them a sufficiently adequate length of scale. This will also partly cater for the length of service.

Proposal: Refix the Scale of Maj Gen / Equivalent

4.28. Background. The proposal to merge rank pay with basic pay gives rise to a potential anomaly wherein the bottom of the scale of a Maj Gen / Equivalent goes below the bottom of the scale of a Brig / Equivalent. Such an anomaly can be resolved by placing the Maj Gen / Equivalent in a higher scale.

4.29. Proposal. It is proposed to refix the scale of Maj Gens and their equivalents from the current Rs 18400 – 500 – 22400 to Rs 20300 – 525 – 24500.

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4.30. Justification. In the light of earlier proposals, the Brig’s / Equivalent scale stands modified to Rs 19100 – 450 – 23150. As a result, the bottom of the scale of Maj Gen at Rs 18400 – 500 – 22400 becomes lower than the bottom of the scale of a Brig; thus giving rise to an anomaly. Hence, the need to refix the scale of a Maj Gen / Equivalent.

4.31. The proposed pay scale would also give due credit to his length of service. Another stand alone reason for refixing the Maj Gen in a higher scale, is the need to interpose 10 services pay scales between the maximum and minimum of the officer pay scales, as against 6 on the civil side.

Proposal: Higher Pay Band for Lt General / Equivalent

4.32. Background. Lt Gens / Equivalent are the highest operational level commanders of the Defence Services. They get promoted to this rank in the 36 th year of service. The length of service and span of control of Lt Gens / Equivalent needs to be adequately compensated.

4.33. Proposal. The following are proposed:-

(a) To place the Lt Gen / Equivalent in the scale of 24050 – 650 – 26000 from the current scale of 22400 – 525 – 24500.

(b) To place the DG AFMS in the scale of Rs 24700 – 650 – 26000 from the existing 24050 – 650 – 26000.

4.34. Justification. The command of Lt Gens/ Equivalents encompasses the entire spectrum of warfare. In the light of induction of modern technology and the human resources under his command he has to be a leader, manager, technocrat, all rolled into one. The vastness of his geographical command has been brought out earlier. With 36 years of service behind him, placing him in the higher scale will not be out of place and will adequately compensate him for the length of service.

4.35. Consequent to their command of formations the Lieutenant Generals/Equivalent are employed as Principal Staff Officers or as Director Generals (equivalent) in Service Headquarters, where they are required to advise the respective Chiefs and interact with various organs of the Govt. Hence, Lieutenant Generals/Equivalent need to be placed in the proposed higher scale.

4.36. Placing the DG AFMS in the scale of Rs. 24700 – 650 – 26000 enables maintaining the existing relativity of the DG AFMS above the Lieutenant General/ Equivalent, but below the Army Commander / Equivalent.

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Proposal: Grant of Army Commander / Equivalent pay to Lt Gen / Equivalent who could Not be Promoted to Army Commander for want of Residual Service

4.37. Background. Prior to 1985 all Lt Gen / Equivalent were given command of a Corps which is an essential prerequisite for command of an Army. Later, in order to ensure stability, a two year residual clause was introduced, whereby only those Lieutenant General/Equivalent who had two years residual service after command of a Corps, were promoted as Army Commanders. As a result, officers who were otherwise eligible to be promoted Army Commanders were not promoted.

4.38. Proposal. It is proposed to grant pay of Army Commander / Equivalent to Lt Gen / Equivalent who could not be promoted as Army Commander / Equivalent for want of residual service.

4.39. Justification. The affected population for pay promotion is equal to the number of C-in-Cs. The residual clause, though in organisational interest, is against the personal interest of the officers who have rendered a long and distinguished service. Grant of Army Commander / Equivalent pay to such officers is also appropriate as these officers, though senior in service, often have to serve in appointments which are junior to the Army Commander / Equivalent. The sanction for grant of Army Commander / Equivalent pay can be accorded on a case to case basis. The perks and privileges associated with the Army Commander / Equivalent will, however, not be granted to such officers.

Proposal: Pay Promotion to Brig and Maj Gen / Equivalent

4.40. Background. The cadre constraints, slow progression and bleak promotional prospects result in large number of otherwise competent Service officers not getting promoted due to lack of vacancies. The problem can be addressed, to an extent, by extending a benefit similar to that available to the Civil Services in the form of Non Functional Selection Grade (NFSG).

4.41. Proposal. It is proposed to grant pay promotion to officers of the ranks of Brig and Major General/ Equivalent, who do not get empanelled for promotion.

4.42. Justification. The steep pyramidical structure, driven by organisational requirements, results in a large number of officers, though acceptable for promotion, not getting promoted due to lack of vacancies. Today, only 0.482% and 2.03% of the entire cadre strength of the defence services gets promoted to the rank of Maj General/Equivalent and Brigadier/Equivalent, respectively. Such cadre and organisational constraints adversely impact on the motivation of the officers’ cadre. Furthermore, the length of service of such officers, is not adequately compensated. In this regard the Ajay Vikram Singh Committee was of the opinion that a panel of officers be drawn for pay promotion to the rank of Brig and Maj Gen. Such a panel would not exceed the numbers empanelled for promotion to the next rank.

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4.43. The IIIrd CPC while introducing Non Functional Selection Grade for Civil Service Officers, gave the following justification:-

(a) Less number of posts in the higher grade.(b) Stagnation in the lower grade.(c) Mitigating the rigours of stagnation.

4.44. It is a moot point, as on all these counts the Service officers suffer the maximum stagnation while being compensated the least for the length of the service. While there is a barrel cadre structure on the civil side, there is a steep pyramidical cadre structure on the defence services side. Introduction of pay promotion for Brig / Equivalent and Maj Gen / Equivalent on the lines of NFSG, to an extent, will help in ameliorating the bleak career prospects of the Services.

Proposal : Pay Scales of Col (Time Scale) / Equivalent

4.45. Background. Presently, Lt Col / Equivalent not promoted to the rank of Col/Equivalent in the select grade are granted the rank of Col (Time Scale) / Equivalent after completion of 26 years of service.

4.46. Proposal. It is proposed to fix the Col (Time Scale) / Equivalent in the scale of Col (Select) / Equivalent in the 27th year of service. Lt Col / Equivalent on promotion to Col (Time Scale) / Equivalent, will be fixed in the stage which falls in the pay scale of Col (Select) / Equivalent.

4.47. Justification. No separate scales are proposed for Col (Time Scale)/ Equivalent. The differential between the pay of Col (Select) and Col (Time Scale) would be maintained as a Col (Select) would enter his scale in an earlier time frame, as compared to a Col (Time Scale) who would do so only in the 27th year.

Proposal: Pay Fixation of MNS Officers

4.48. Proposal. It is proposed that pay fixation of MNS officers be regulated as per FR 22 (I) (a) (i) whereby they are given the benefit of at least one increment in the lower scale on promotion.

4.49. Justification. For MNS officers, the gain on promotion is nil or very marginal and in no way near one increment. In the light of non receipt of rank pay and the marginal gain on promotion, it is proposed that MNS officers be governed by FR 22 (I) (a) (i) on promotion to higher rank. Application of FR 22 (I) (a) (i) will enable the following:-

(a) Remove the discrimination between regular and MNS officers who do not receive rank pay.

(b) Improve the satisfaction level of MNS officers as presently a promotion does not give them any monetary benefit.

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PROPOSED PAY SCALES

4.50. General. In proposing the recommended pay scales we have been conscious of the sensibilities of the existing relativities and status equations. Yet the proposed pay scales are within the realms of feasibility and acceptability.

4.51. Existing Pay Scales. The existing pay scales do not compensate for the length of service of Defence Service Officers. They are hostage to Civil pay scales and the numbers of increments of the scales, do no justice to the select and Flag ranks.

4.52. Modified Pay Scales. In suggesting modifications to the existing scales the services have endeavoured to marry the aspirations of the environment with the cadre and organisational realities in conjunction with the existing relativities on the civil side. The demand for increased disparity ratio is a modest attempt to bridge the salary differential with the private sector. Our demand for higher pay scales is in no way an attempt to alter the Warrant of Precedence. The reference to it is from the point of view of ‘Span of Control’ while compensating the Service officer for the length of service they put in.

4.53. Proposal. In keeping with the proposal of applying a multiple of 4.5 and increased disparity ratio of 1: 12 the proposed replacement scales on the modified existing scales are as under:-

RANK EXISTING SCALES RANK PAY

MODIFIED SCALES WITH RANK PAY MERGED

PROPOSED SCALES WITH FACTOR OF 4.5

LT / EQUIVALENT 8250 – 300 - 10050 8250 - 300 - 10050 37200 – 1350 – 45300

CAPT/ EQUIVALENT

9600 – 300 - 11400 400 10000 - 325 - 11950 45000 – 1400 – 53400

MAJ/ EQUIVALENT 11600 – 325 - 14850 1200 12800 - 375 – 16550 57600 – 1500 – 72600

LT COL/ EQUIVALENT

13500 – 400 - 17100 1600 15100 - 400 – 19100 68000 – 1800 – 86000

COL/ EQUIVALENT 15100 – 450 - 17350 2000 17100 - 450 – 22050 77000 – 2100 – 100100

BRIG/ EQUIVALENT 16700 – 450 - 18050 2400 19100 - 450 – 23150 85950 – 2250 – 106200

MAJ GEN/ EQUIVALENT

18400 – 500 - 22400 20300 - 525 – 24500 91350 – 2500 – 111350

LT GEN/ EQUIVALENT

22400 – 525 - 24500 24050 - 650 – 26000 108000 – 3000 - 117000

DGAFMS 24050 – 650 - 26000 24700 - 650 – 26000 111000 – 3000 - 117000

ARMY CDR/ EQUIVALENT

26000 26000 117000

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4.54. Disparity Ratio. It is proposed to increase the disparity from the existing 1: 10.19 to 1: 12 or higher.

CONCLUSION

4.55. The success of the leadership of the Indian Defence Services, both in victory and adversity is attributable to the fact that its officers are an essential part of the Indian society and not in any way removed from it. They have an enviable record of the highest officer to man casualty rates in the world; implying that they are in the forefront of operations. ‘Kargil’ the first war fought in the era of TV and in the times when materialism was said to hold sway, the ‘Indian Defence Service Officer’ by readily facing death, proved his mettle repeatedly on the icy Himalayan heights. The commitment, loyalty and integrity are in place. What is lacking is the numbers. The deficiencies are attributable to the organisational and cadre constraints and bleak career prospects. Our proposals for compensation for length of service are just and in line with our civilian brethren in Govt service.

4.56. The recommendations and proposals are an honest attempt to get an equitable deal for the officer cadre of the Defence Services, in keeping with their status in society of which they are useful members. Being part of the society it behoves on the Government to adequately compensate him and not leave him wanting. The role of the Defence Services and the officer as a catalyst in the economic growth of the country needs to be appreciated and compensated.

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CHAPTER – V

ALLOWANCES

5.1. The Vth CPC in its recommendations had generally doubled all the allowances that were in the fixed amount category. On the other hand, the allowances which were based on percentages of the pay, got an increase of 3.2, times since the V th CPC increased the Basic Pay by the same ratio. Thus the allowances which were based on percentage of pay were more beneficial as against the fixed amount/slab rate allowances which were merely doubled. Those covered by the slab/fixed rate allowance, thus stood to lose the preset relativities to Basic Pay prior to the award of V th

CPC. In order to remove such an anomaly it is necessary that the fixed/slab rate allowances must be multiplied by the same factor, which is applied for the pay scales. In fact, while the percentage based allowances had the benefit of merger of DA as DP etc. Those covered by the slab system had remained stagnant since this V th CPC award. Thus, there is a case to increase the slab rate allowances at par with percentage based allowances.

5.2. There is yet another misconception, that the compensations and allowances admissible to Armed Forces personnel are disproportionately large. This perhaps, flows from a misunderstanding of both the range of such allowances and thereafter, the scope. The Armed Forces personnel are dispersed in all sorts of terrain, ranging from the most inhospitable high altitude regions in the world, to tropical forests, arid deserts and the vast oceans. They are also employed on tasks ranging from the routine and mundane to those requiring the highest application of military skills whether it is related to land, sea or air, coupled with technology levels which are ‘state of the art’. Under such conditions, the specific allowances are admissible as a means of compensation, only to those who meet the qualifications required for the award of particular allowance.

5.3. In an era of inflation, fixed/slab rates for allowances, lose their relevance as the years go by. In many cases the very raison d’etre of the allowance disappears as the rates have no relation to the economic realities. It is, therefore necessary, that the rates of these allowances should have an institutionalised method of being automatically revised, based on the rise in CPI and this should be done on an annual basis. Further, these allowances are based on the compensatory factor that is due from the Government. It is further proposed that the Risk Related Allowances must be exempt from the purview of taxes.

5.4. The allowances admissible to the Armed Forces personnel have been broadly classified as follows :-

(a) Allowances applicable to all Central Govt employees including Armed Forces personnel.

(b) Risk related allowances.(c) Situation / Location related allowances.(d) Personal related allowances.(e) Travel Entitlements. (f) Leave Travel Concessions.

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SECTION - 1

ALLOWANCES APPLICABLE TO ALL CENTRAL GOVT EMPLOYEES INCLUDING ARMED FORCES PERSONNEL

Dearness Allowance

5.5. Proposal. The VIth Pay Commission, it is opined should formulate a separate index by commissioning an independent study and thereby implement the recommendation of its predecessor Commission. Whilst neutralisation should continue to take place twice a year, the DA should be converted to Dearness Pay (DP) annually. 5.6. Justification. Once DA has been accepted as a permanent part of the pay structure, its merger with basic pay every ten years by a Pay Commission merits review. It is not justified to deny in the intervening years the proportionate share of the merger. It is, therefore, necessary that annual conversion of the DA to DP takes place in Apr of each year.

City Compensatory Allowance

5.7. Proposal. The following is proposed:-

(a) Defence establishments located outside the 8 kms of municipal limits of a classified city should also be entitled to CCA, if the Nearest Railway Station (NRS) of the unit is the railway station, located in the area where CCA is admissible.

(b) The allowance needs to be linked to CPI and reviewed annually.

(c) Review criteria for classification of cities.

5.8. Justification. Defence establishments are by and large, not located within the municipal limits of classified cities or in areas where CCA is admissible. The employees posted to these establishments are totally dependent on the cities in the vicinity, for all their needs and are equally affected by the high cost of living in those cities. CCA for such service establishments therefore, would be derived by accepting the CCA applicable, to the nearest Railway station. Further there are certain places like tourist destinations and pilgrimage centres, where there is a lot of floating population which is not captured by the census data. The floating population makes these places highly expensive, while they do not qualify for CCA based on the population. It is suggested that there should be a mechanism whereby such areas can be notified on a regular basis for the purpose of CCA. The allowance needs to be linked to CPI and reviewed annually, in order to make it a meaningful compensation for high cost of living.

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Special Compensatory Allowances

5.9. The following special compensatory allowances are admissible to Armed Forces personnel on the same terms and conditions, as are applicable to civilian employees.

(a) Special Compensatory (Hill Area) Allowance.(b) Special Compensatory (Remote Locality) Allowance.(c) Island Special (Duty) Allowance. (d) Project Allowance.(e) Hard Area Allowance.(f) Special Compensatory (Bad Climate) Allowance.

5.10. Proposal. It is proposed that all allowances including Tribal Area Allowance which are applicable to civilian employees should be extended mutatis-mutandis to Armed Forces personnel. In addition, the following is also proposed:-

(a) It is noted that there are certain remote locations where there are no Central Govt establishments located there other than Defence Organisations, which inhibits payment of these allowances to the Services. The Ministry competent to declare areas as remote, should consider even those locations where there are only defence establishments, so as to make them eligible for compensatory allowance as applicable.

(b) In respect of Project Allowance, it is proposed to be extended to PBOR in receipt of pre-revised pay of Rs 6000 and below @ 10 % of BP.

(c) Since Defence Forces have to provide relief and rescue during natural disasters and calamities, these areas be declared Hard Areas automatically and the personnel involved be authorised to draw this allowance.

5.11. Justification. It is seen that the lists of areas of the instant allowances contains only those areas where Central Government civil offices are located. This stipulation does not cater to some remote areas where only Armed Forces establishments exist. The appropriate authority must reckon such areas for inclusion in the list of areas eligible for Special Compensatory allowance. Presently Tribal Area allowance is not admissible to Armed Forces personnel. The same must be extended mutatis-mutandis since conditions remain identical for all categories of personnel.

Bhutan Compensatory Allowance

5.12. Proposal. It is proposed that Armed Forces personnel posted to Bhutan be entitled to all the allowances and benefits at the same rates which are admissible to civilian personnel, from the Ministry of External Affairs, on posting to Bhutan.

5.13. Justification. Presently the facilities that are extended to the Service personnel for which the depression was enforced relates to Canteen and Mess facilities. While the Mess is managed on contributory basis by service personnel, the

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Canteen facilities are extended to all posted in Bhutan. Treating this allowance on a different footing and depressing payment of BCA to similarly placed Defence personnel in Bhutan is, therefore, not justified.

Deputation Allowance

5.14. Proposal. It is proposed that the Armed Forces personnel should be granted deputation (duty) allowance at the same rates as for civilians and the allowance be extended to the Service Officers posted to the DRDO and Assam Rifles etc. It is also proposed, that the Service Officers be considered for deputation on the basis of equivalent pay, rather than by rank (as deputation allowance is related to the pay of the post).

5.15. Justification. Deputation Allowance for Armed Forces is restricted to 50% of the rates applicable to civilian officers. The reason for the same, is that the Service Officer continues to be eligible for the benefits of his parent service whilst on deputation. This argument merits review in view of the following: -

(a) Both the categories of officers i.e. commissioned officer and civilian Group ‘A’ officer continue to get all the benefits available to them before deputation. No facility is withdrawn from the civil officer proceeding on deputation.

(b) Deputation (Duty) Allowance is given in order to attract persons possessing the necessary expertise to occupy, for a relatively short duration, posts requiring specialised knowledge or skills, in public interest that are outside their normal sphere of responsibility. The depression in the rate of the allowance for Armed Forces personnel, is against the very purpose, for which the allowance is admissible and is also against the principles of fair play.

Special Pay

5.16. The following is proposed on the various types of Special Pay admissible to Central Govt employees, including Armed Forces personnel, which are given below:-

(a) Special Increment of pay for adopting small family norms – One increment of existing scale at the time of adopting norms.

(b) It is proposed to increase the Sports Incentive to three and two increments for International and National events, respectively. This is to motivate as well as reward outstanding performances as also to encourage better performances at these levels. Quantum of incentive to continue to be equal to the revised increment in the pay scale.

(c) Hindi pay is admissible to PBOR at the rate of one increment for the period of 12 months.

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Transport Allowance

5.17. Transport allowance was introduced for the first time as per the recommendation of Vth CPC. The orders issued for Civilian Central Govt employees were mutatis-mutandis made applicable to Armed Forces personnel as well. It was introduced on the premise that since the Govt allowed journeys between residence and place of work by official car to executives of the rank of Joint Secretary and above on payment of nominal monthly charges, there was merit in providing limited compensation to the other category of employees.

5.18. While the Vth CPC recommended introduction of Transport Allowance to all Central Govt employees including Defence personnel, the Govt while accepting the recommendation, excluded the following employees from the admissibility of this allowance:-

(a) Those provided with Government Accommodation within a radius of one kilometre from their place of work.

(b) Those staying within a Campus housing the place of work and residence.

(c) Those employees who are provided with the facility of Govt transport.

5.19. Proposal. Since the Armed Forces, have both Civilian Central Govt employees and uniformed personnel, the rates and conditions need to be made uniformly applicable to all concerned. The following is proposed for consideration in respect of all Central Govt employees, including personnel of Armed Forces:-

(a) The clause restricting this allowance to those provided with Government accommodation within a radius of one kilometre from their place of work needs to be removed.

(b) The clause restricting this allowance to those staying within a Campus housing the place of work and residence needs to be deleted.

(c) The allowance be provided in kind, or as cost for a fixed quantity of fuel, at prevailing local rates, since taxes vary from State to State.

(d) It is also proposed that this allowance be paid without any distinction of class of city, since majority of the establishments are spread over several kms.

5.20. The rate of this allowance is proposed to be given in kind @ 75 litres for officers and 50 litres for PBOR.

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5.21. Justification. The Vth CPC had uniformly recommended introduction of this allowance to all employees, who are not provided Govt transport from residence to office and back. The restricting clauses, as indicated in para 5.18 (a) and (b) have led to following anomaly.

(a) Officials authorised government transport and staying in Govt accommodation within a radius of one km from place of work, or in a campus, are provided free Govt transport while junior employees drawing lower salary in similar situation are not suitably compensated.

(b) A Govt employee occupying a hired house within a radius of one km and drawing HRA is eligible to draw transport allowance while their counterparts staying in Govt accommodation are not authorised for the allowance.

(c) In campuses, there is no public transport system such as route running bus service etc., unlike in civil areas where there is a public transport system. This results in Service personnel in a campus, spending more on conveyance, as compared to his civilian counterparts.

(d) Distance in Campus between office and residence is seldom within one km. In defence establishments and most civil establishments, such as Space Centre, Atomic Centre, DRDO complexes, Aerodromes, etc. a campus may stretch for thousands of hectares. Thus, depriving Central Govt Employees and Armed Forces Personnel who perforce have to travel more than one Km each way being in campus, merits consideration of the Pay Commission. The expenditure incurred by personnel remains more or less the same irrespective of the location of the unit/establishment, since the distance between office and residence is still several kms. Therefore, the distinction in the rate based on class of city needs to be done away with.

5.22. The following views are submitted in support of the proposal to provide cost of certain fixed quantum of fuel every month to all Govt employees.

(a) Fuel rates vary from State to State. The proposal will remove the disadvantage now faced by employees posted in states charging higher tax rates.

(b) The fuel prices in India are directly linked to the International price of crude oil which is highly volatile and the Govt in due course is planning to de-control fuel prices.

5.23. The quantity of fuel recommended, is based on the assumption, that officers generally use motor car to transit between the office and residence while the other category would normally use motor cycle/scooter for their official use. It is also pertinent to note that Armed Forces personnel have to visit their place of work more than once for activities such as parade, organised games etc which is normally beyond their routine nature of duty.

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Conveyance Allowance

5.24. It is proposed, that conveyance allowance admissible to Armed Forces personnel should continue to be on the same terms and conditions and at the same rates, as applicable to civil government.

Children Education Allowance (CEA)

5.25. The Armed Forces have the following to propose on the subject:-

(a) Children Education Allowance. Since the cost of education and living has gone up tremendously, the present day rate of Rs. 100/- per child is considered grossly inadequate to maintain a second establishment for a child at a different location. To be enhanced to Rs 1000 pm from the current rate.

(b) Tuition Fee Reimbursement. To be reimbursed as per the actuals subject to a max of Rs 1400/- pm. The additional charges levied by Kendriya Vidyalayas and other schools excluding admission fees such as Vidyalaya Vikas Nidhi charges etc should also be reimbursed. The rate merits review for following reasons:-

(i) The seats in KVs are not sufficient to accommodate children of all Armed Forces Personnel.

(ii) In the North East and remote locations of the defence establishments, KVs are undermanned due to absence of teachers due to their reluctance to take up appointments in such areas.

(iii) The above conditions have forced Armed Forces personnel to send their wards to private schools for education.

(iv) The monthly fees charged by Military schools of Govt. of India/State Governments, is approximately Rs. 2000/- pm.

(v) Considering the above aspects and taking note of the average fees charged by CBSE recognised schools, reimbursement of fees should be increased to 1400/- pm, per child.

(c) Hostel Subsidy. The expenditure subject to a maximum of Rs. 300/- pm is reimbursed when a child has to be sent to a hostel as a result of a transfer. It is proposed that full expenditure must be reimbursed subject to maximum of Rs. 3,000/- pm per child.

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Educational Concession to Children of Missing/Disabled/Killed in Action

5.26. The existing concessions and the proposals are appended below.

Existing Proposed

(a) Tuition Fees Full Reimbursement Same (b) Hostel Charges -- do-- Same (c) Cost of Books/Stationery Rs. 250 pa Rs. 2500 pa(d) Cost of Uniform Rs. 850 (1st yr) Rs. 5000 pa

Rs. 350 pa (subsequent yr) Rs. 2000 pa(e) Clothing Rs. 250 (1st yr) Rs. 2500 pa

Rs. 150 pa (subsequent yr) Rs. 1500 pa

5.27. Justification. A substantial increase has been sought in certain benefits since they were last revised prior to 1988.

Instructional Allowance

5.28. The current and proposed rates of the allowance are as under:-

Category Existing Rate Proposed Rate

(a) Officers Rs.900/- Rs. 4,050/-(b) JCOs/Equivalent Rs.500/- Rs. 2,250/-(c) NCOs / Equivalent Rs.300/- Rs. 1,350/-

5.29. Justification. Training is one of the most important and vital aspects of the Armed Forces. It is a continuous process, where an individual is trained to equip himself to undertake his next assignment. The efficiency of the fighting machine depends to a large extent on the level of training imparted. Training in the Armed Forces is, therefore, a very serious business. Instructors are selected with great care. Not only must they be highly qualified but also have the flair, aptitude and dedication to become an instructor. It would be obvious that instructors can be selected only from the best. It is pertinent to note, that a similarly placed civilian is authorised to draw 15 % of Basic as Instructional Allowance. The proposed increase in the rates are therefore justified.

Non-Practicing Allowance

5.30. This allowance is granted to Medical Officers (AMC/ADC/RVC) to compensate for not practicing in civil. The rates are as applicable to all Central Govt Medical Officers. The existing rate is 25% of basic pay subject to pay, Dearness Pay plus NPA not exceeding the pay of the Service Chiefs. The rules framed for CGHS doctors must continue to be extended mutatis-mutandis to the medical officers of Armed Forces.

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Specialist Allowance for AMC, ADC & RVC Officers

5.31. This is an allowance paid to specialist medical officers when they are posted to fill such vacancies in a medical establishment. The current and proposed rates are as given below:-

Sl. No. Category Present Rate Proposed Rate

(a) Graded Specialist Rs. 800/- pm Rs. 3600/- pm

(b) Classified Specialist Rs. 1000/- pm Rs. 4500/- pm

(c) Consultant /Advisor Rs. 1200/- pm Rs. 5400/- pm

Post Graduate Allowance

5.32. This allowance is paid to AMC & ADC officers at the rate of Rs. 500/- pm for post graduate degrees and Rs. 300/- pm for post graduate diploma holders. The post graduate allowance is payable for the period when they were not eligible for grant of specialist allowance. The rates of this allowance are proposed to be increased to Rs. 2,250/- pm and Rs. 1,350/- pm, respectively.

Skill Allowance

5.33. This allowance, is being introduced by medical PBOR, to encourage them to imbibe special skills in the fields of cardiology, dialysis and gastroenterology. These skills enhance their knowledge levels and are considered crucially critical patient care.

5.34. Proposal. It is proposed that Specially Trained Nursing Assistants (STNA) PBOR be authorised Rs. 450/- pm.

5.35. Justification. There is a stress on expertise on specialised equipment and techniques in order to bring about qualitative improvement in patient care. To achieve this stated aim, the health care workers need to be encouraged to undertake specialised training. To motivate and compensate them for the additional work, higher skill levels, risk and discomforts these personnel be authorised Skill Allowance.

Research Incentive

5.36. Proposal. Research incentive for doctors of the Army Medical Corps and Army Dental Corps, be extended mutatis mutandis, for parity with doctors of the CGHS.

5.37. Justification. Doctors of Armed Forces Medical Services need to be encouraged to carry out research for the benefit of the Officers and PBOR of the Armed Forces and their families.

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Language Award/Language Allowance

5.38. The proposed rates of this allowance are as given below:-

(a) Award for passing Diploma Part-II with 65% & above marks.Sponsored Non-SponsoredCandidate Candidate

Existing Proposed Existing Proposed (PM) (PM) (PM)

(PM)

(i) Cat-I Rs 1000/- Rs 5500/- Rs 1500/- Rs 8250/-(ii) Cat-II Rs 700/- Rs 3850/- Rs 1000/- Rs 5500/-(iii) Cat-III Rs 500/- Rs 2750/- Rs 700/- Rs 3850/-

(b) Award for Passing Interpreter ship Exam with 70% & above (to first 3 Defence Personnel).

(i) Cat-I Rs 2000/- Rs 11000/- Rs 3000/- Rs16500/-(ii) Cat-II Rs 1500/- Rs 8250/- Rs 2000/- Rs11000/-(iii) Cat-III Rs 1000/- Rs 5500/- Rs 1500/- Rs 8250/-

(c) Language Allowance ( for all personnel )

(i) Cat-I Rs 300/- Rs 1650/-(ii) Cat-II Rs 250/- Rs 1375/-(iii) Cat-III Rs 200/- Rs 1100/-

5.39. Justification. The Armed Forces traditionally have been technology intensive organisations. The technologies available at present with the Armed Forces are primarily through import from foreign countries. Such an arrangement has a side-effect namely the documentation of the product/technology is in their native language. It is necessary that the documents are correctly and accurately translated into Hindi/English to make them user friendly and understandable, without causing undue delay, since it directly impacts on operations. Thus, the need to attract quality volunteers as translators cannot be over emphasised. They are required to undertake the task of translation and interpretation of crucial documents. In view of the same enhanced rates are justified.

House Rent Allowance

5.40. Proposal. The GOI extended the provision of HRA as applicable to civilian employees to Armed Forces Officers wef 21 Nov 1997, after the award of V CPC was implemented. One of the compelling reasons for seeking extension of HRA was the non revision of House Rent Reimbursement (HRR) ceilings for Armed Forces officers. The following is proposed in this regard:-

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(a) HRA be extended to PBOR with the condition that it should be calculated at the maximum of “X” group pay scale at the same percentage of pay as applicable for civilians in each rank. An additional 5% of the allowance be granted since PBOR are entitled to free water, furniture, electricity etc.

(b) If entitled status Govt accommodation is not provided then 50% of HRA be made admissible to the personnel.

(c) The allowance be exempt from Income Tax.

(d) The age restriction for drawal of this allowance, be brought down in respect of Armed Forces from the current age of 25 years to 21 years.

(e) Classification of cities should be reduced to three from existing four. The following classification and revised rates of HRA are proposed:-

Class of Cities Existing Rate Proposed RatesA1 30 % 40 %A, B1, B2 15 % 30 %C 7.5 % 20%Unclass 5 % 20 %

5.41. Justification. HRR and CILQ were fixed after Vth CPC. Consequent to merger of DA with DP, these rates have not been revised by the Government to date making them much inferior to HRA on one hand and also much lesser than the market rates of hiring on the other. As a result of merger of DA into DP, HRA for a Civilian employees, which was lower than CILQ prior to the merger has now become more than CILQ. This anomaly needs to be addressed on priority in view of the spiraling cost of rented accommodation. In the absence of revision of these rates, the PBOR are especially being put to financial hardship. The present classification of the cities for the purpose of HRA is an inhibiting factor in enhancing the satisfaction levels of the Armed Forces personnel. There is also a need to revise the classification of the cities for the purpose of HRA. It is strongly recommended that the rates and classification of cities be revised as mentioned in the table above and HRA be extended to PBOR.

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SECTION - 2

RISK RELATED ALLOWANCES

FLYING / SUBMARINE / MARCOS AND CHARIOT /SIACHEN ALLOWANCE

Existing Rates Proposed RatesRank Rates Rs pm Rates pm

5.42. Siachen Allowance.

(a) Officers Rs. 7000/- Rs. 31,500/-(b) PBOR Rs. 4667/- Rs. 21,000/-

5.43. Flying Allowance

(a) Air Cmde and above Rs. 5250/- Rs. 27000/- (b) Sqn Ldr/Wing Cdr/Gp Capt Rs. 7000/- Rs. 31500/- (c) Flight Lieutenant Rs. 5500/- Rs. 24750/-(d) Flag Officer Rs. 4500/- Rs. 20250/- (e) JWO and above & Equiv Rs. 4200/- Rs. 18900/- (f) Senior NCO & equiv Rs. 3500/- Rs. 15750/-

5.44. Submarine / MARCOS and CHARIOT Allowance

(a) Capt above 3Yrs & above Rs. 5250/- Rs. 27000/- (b) Lt Cdr/Cdr/Capt less than 3Yrs Rs. 7000/- Rs. 31500/- (c) Lieutenant Rs. 5500/- Rs. 24750/- (d) Sub Lieutenant Rs. 4500/- Rs. 20250/- (e) MCPO II/I Rs. 4200/- Rs. 18900/- (f) CPO & Below Rs. 3500/- Rs. 15750/-

5.45. In the interpretation of eligibility there are certain anomalies that required correction and these are indicated below:-

(a) Warrant Rank Anomaly . An anomaly had inadvertently crept into the equivalencies for grant of Flying Allowance. This was because in the Airforce Warrant Ranks, start from the level of the Chief Petty Officer in the Navy. However, in the Navy Master Chief Petty Officer is considered to hold a Warrant rank. Owing to this contradiction, a Chief Petty Officer was placed in an authorisation level one below his entitlement. It is thus proposed that a clarification be issued so that all equivalent ranks are treated at par.

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(b) Air Commodore Flying Pay aberration . Presently on promotion from Group Captain to Air Commodore there is reduction in flying allowance to the tune of Rs. 1750/- pm. The increase in Basic pay and rank pay of the officer does not compensate for this reduction in flying allowance. In other words, the take home salary for an officer when promoted from Group Captain to Air Commodore is reduced, which is anomalous. This anomaly needs to be addressed and it is proposed, to correct this anomaly by suitably increasing the flying allowance admissible to officer of the rank of Air Commodore and above and their equivalent.

(c) Extension of Navy and IAF Eligibility Conditions to the Army Aviation Pilots. An Army Aviation pilot after his tenure in an Air Observation Squadron is generally posted to a non flying unit for a specific duration. However, while serving in a non flying unit he ceases to draw flying allowance unlike his counterparts in the Air Force and Navy, where the pilot continues to draw the same. It would be pertinent to bring out here, that a large sum of money has been spent to train a pilot who is available for Army flying duties as and when required. Therefore, to deprive him of flying pay vis-à-vis his counterparts in the Air Force and Navy is discriminatory. A similar situation exists in respect of PBOR of MMG units who attain such great skills at the risk of their life. Therefore, it is proposed that Army Aviation pilots and PBOR of MMG units should be eligible for flying allowance, on the same terms and conditions as applicable in Air Force and Navy, as long as they continue to be borne in the Aviation Cadre.

(d) Equation of Special Forces of Army & IAF with Naval MARCOS. The tasks performed by special forces of the Army and Air Force (Commandos) are similar in nature to that of MARCOS. Hence the existing disparity in SF Allowance vis-à-vis MARCOS needs to be removed.

(e) Exemtion of Income Tax for Risk Related Allowances. There exists yet another discrimination in that while Field Area Allowance and Siachen allowance is exempt from income tax the same is not true of Flying, Submarine, MARCOS and CHARIOT Allowance, despite the risk remaining equal. This discrimination needs to be removed and all these allowances be also exempted from Income Tax.

Test Pilot Allowance

5.46. Proposal. The existing Test Pilot Allowance of Rs. 1000/- and Rs. 500/- in respect of Test Pilots and Flight Test Engineers be increased to Rs. 4500/- pm and Rs. 2,250/- pm respectively. It is recommended that this allowance, should also be extended to aircrew posted to aerobatic teams.

5.47. Justification. The performances of aerobatic teams, depict the level of flying skills of the Armed Forces. It also conveys to the adversaries, the might of the Forces in the air. Thus the aircrew who are selected to be members of such aerobatic

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teams require very high professional skills. In order to depict the might of the Nation they undertake such dare devil aerobatics which involves high level of risk which is comparable to the risk undertaken by a Test Pilot. Thus the aircrew when posted to such aerobatic teams should be made eligible for an additional allowance which could be at par with Test Pilot Allowance.

Submarine Duty Allowance

5.48. Proposal. Submarine Duty Allowance (Submarine Allowance) is admissible to personnel other than qualified submariners who embark a submarine, for training passage and trials etc, This allowance is a compensation for the risk, hazard and discomfort inherent in submarines and equally faced by submariners. The existing rate of Rs. 45/- and Rs. 15/- per day in respect of Officers and PBOR respectively, is recommended to be increased to Rs. 210/- and Rs. 70/- per day.

5.49. Justification. The under-trainees and non-submarine personnel temporarily attached to submarines are equally subject to risk, hazard and discomfort and need to be compensated equally, which is justifiable.

Diving Allowance, Dip Money and Attendant Allowance

5.50. Diving Allowance rates The existing and proposed rates are:- Existing (pm) Proposed (pm)

(a) Officers.

(i) Clearance/Deep Diving Officers Rs 400/- Rs 1800/- (ii) Ships Diving Officer Rs 200/- Rs 900/-

(b) Sailors.

(i) Clearance Diver Class I Rs 300/- Rs 1350/- (ii) Clearance Diver Class II Rs 260/- Rs 1170/- (iii) Clearance Diver Class III Rs 220/- Rs 990/- (iv) Ships Diver Rs 200/- Rs 900/-

5.51. Dip Money(Rates per Minute in Rs)

(Depth in Fathoms) Existing Proposed

(a) Upto 20 0.60 2.70(b) 22 to 30 0.90 4.05(c) 30 to 40 1.20 5.40(d) 40 to 50 1.80 8.10(e) 50 to 60 2.40 10.80(f) 60 to 75 3.40 15.30(g) 75 to 100 3.80 17.10

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5.52. Diving Attendant Allowance. An attendant to a diver, is entitled to 1/5 th of the Dip Money admissible to a diver, as he assists the diver, by tending to his needs from a ship, boat or platform on the surface.

5.53. Justification. Divers are continuously engaged in specialised, highly skilled and very hazardous jobs in submerged conditions. Similarly, the demand from the civil authorities for assistance for under water tasks, salvage operations is on the increase. It is therefore necessary that the divers are remunerated adequately to ensure optimum morale and motivation which would enable them to perform these tasks with courage, dedication and skill. It is, therefore, recommended, that the proposed increase in diving allowance and dip money be granted. In addition, non admissibility of this allowance to Army and Air Force personnel who are qualified divers is considered discriminatory and this needs to be extended to such qualified divers of Army and Air Force, on similar terms and conditions, as admissible to Naval divers.

Special Forces Allowance

5.54. Marcos and Charioteers are the Special Forces of the Indian Navy. They are being given an allowance at the rates similar to Submarine Allowance. Special Forces of Army and Air Force, are also elite forces, specially selected and trained, to carry out tasks similar in nature to Marcos. Their selection criteria, physical and training standards are also comparable. However, they are not being given similar rate of allowance. This is an anomaly, which needs to be corrected. It is proposed that the rates of MARCOS Allowance be equated with that of Special Forces in the other two Services. This will not only motivate these personnel but would also result in getting better individuals to volunteer for this important task.

Para Jump Instructor Allowance

5.55. Proposal. It is proposed that the existing rates of this allowance be enhanced to the rates indicated below and extended to Army and Navy mutatis-mutandis:-

Existing Rates Proposed Rates

(a) Officers Rs. 1,200/- pm Rs. 5,400/- pm (b) PBOR Rs. 900/- pm Rs. 4 050/- pm

Free Fall Jump Instructor Allowance

5.56. Proposal. It is proposed that the recently introduced FFJI Allowance be renamed as Free Fall Allowance. The allowance be authorised in addition to the existing category of instructors to all those personnel who undertake free fall jumps including those who do these jumps for demonstrations and training. The current rates of the allowance be enhanced to the rates indicated below and this allowance be mutatis-mutandis extended to Army and Navy and be renamed as Free Fall Allowance:-

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Existing Rates Proposed Rates

(a) Officers Rs. 1000/- pm Rs. 4500/- pm (b) PBOR Rs. 600/- pm Rs. 2700/- pm

5.57. Justification. Selected personnel are required to be trained in the kill of military and demonstration free fall parachuting. This skill involves jumping with special kind of parachutes from heights of up to 30,000 ft using oxygen equipment for survival, and thereafter carrying out, extensive and controlled maneuvers in the air, to achieve a precision landing 25 to 30 Kms away, from the point of release is a pre-selected landing zone. This skill besides being risky, requires an individual to utilize other high grade skills like navigation and communication simultaneously in order to achieve the desired results. As this type of skill is essential for highly specialized operations and to adequately compensate these selected personnel, for the high risks involved in free fall, it is justified that Military Free Fall Allowances be made admissible to all qualified personnel.

Para Allowance and Para Reserve Allowance

5.58. Proposal . These allowances are primarily given to Para Troopers. It is proposed to extend it to personnel of the Navy and IAF who are presently not in receipt of these allowances but undertake such duties. The following rates of Para/Para Reserve Allowance are proposed:-

Existing Rates Proposed Rates

(a) Officers Rs. 600/- pm Rs. 2700 pm(b) PBOR Rs. 400/- pm Rs. 1800 pm(c) Para Reserve Rs. 100/- pm 50% of the Para Allowance

Allowance

5.59. Justification. The Para Reserve Allowance had traditionally been 50% of Para Allowance admissible to PBOR. While the Para Allowance was revised to Rs.400/- PM wef 29 Feb 2000, the Para Reserve Allowance was not considered for revision. The continued maintenance of Parity between Para Allowance and Para Reserve Allowance it is opined should be retained, in view of the high physical standards needs to be maintained by all of them. Highly Active Field Area and Counter Insurgency Operations Allowance

5.60. The following is proposed.

(a) Categories of CI (Ops) allowance be reduced to two from the existing three.CI (Intense) be given the same rates as being given to CI (Op) in Field presently, CI (Moderate) be given the same rates as CI (Op ) in Modified Field. The CI allowance be also made applicable to the Navy when personnel operate

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at sea and are involved in Low Intensity Maritime Operations (the maritime name for counter-insurgency operations at sea) in the notified areas or operations that are designated as such by the competent Government authority. The applicability condition of 30 days for the drawal of this allowance, may be amended for the Navy and be made as ‘Mission based on specific orders’. For calculation of eligibility, the conditions applicable to Sea Duty Allowance are recommended.

(b) The HAFA allowance be applicable to the Navy at the similar rates for all the sea deployments to areas which are declared as such by the competent government authority. This allowance be ‘Mission based on specific orders’ and be admissible, it certified by the Command Headquarters. This allowance is therefore in essence and ex-post facto one.

(c) The proposed rates of HAFA and CI (Intense) and CI (Moderate) is given below:-

RankCI

(Intense )CI

(Moderate)HAFA

(Amount in Rupees per month)Lieutenant Colonel and above and Equivalent

21450 16500 23100

Major and Equivalent 19800 15235 21340Captain and Equivalent 18150 13970 19525Lieutenant and Equivalent 17325 13310 18645JCO and Equivalent 14850 11440 16005Havildar and Equivalent 9900 7590 10670Sepoy/Naik and Equivalent 8250 6325 8910

5.61. Justification. Post 1997, 27 additional RR Battalions, 6 Sect HQs and 2 Force HQs have been raised. The findings of Research Paper on `Psychological Effects of Low Intensity Conflict Operations’, published in Indian Journal of Psychiatry, 2006, have revealed that Indian Army soldier spends 10.87 Years in LIC Operations as compared to one year by his counterpart in Western Countries. Defence Institute of Psychological Research (DIPR) , New Delhi study also reveals that stress related cases are on the increase due to psychological effects, owing to this prolonged exposure in intense CI/Operations environment. Besides all other consequences of this prolonged deployment, the inherent risk to life is very high. This fact is adequately substantiated by the casualties suffered during the period 2001 to 2006. A total of 2489 all ranks (169 Officers and 2320 PBOR) were killed and an equal number, if not more, have been wounded. Thus the present rates of compensation, compared to the risk involved due to prolonged deployment, appear to be grossly inadequate. A substantial increase in these allowances will go a long way in bolstering the morale of troops.

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SECTION - 3

SITUATION/LOCATION RELATED ALLOWANCES

Field Service Concessions

5.62. The following rates for Field Area Allowance are proposed:-

Rank Field Area Modified Field AreaLt Col and above & Equivalent 11700 4500Major & Equivalent 10800 4185Captain & Equivalent 9900 3870Lieutenant & Equivalent 9450 3600JCOs & Equivalent 8100 2700Havildar & Equivalent 5400 2070Sepoy/Naik & Equivalent 4500 1800

5.63. Justification. The Field service concessions are granted to Armed Forces personnel to compensate for the difficult and hard living conditions, separation from their families and physical and physiological factors which affects an individual serving in these areas. Inadequate compensation for hardships have emerged as a prominent de-motivator for young aspirants seeking Armed Forces as a career.

High Altitude Allowance

5.64 The following is proposed:-

(a) High Altitude Allowance be classified as under:-

(i) Category-I - 9000 to 15000 feet.(ii) Category-II - 15000 ft and above.(iii) Category-III - Areas where conditions similar to Siachen

exist, but have not been designated so.

(b) It is proposed that Category-III areas, identified by Service Headquarters, where conditions similar to Siachen exist, be granted 80% of Siachen Allowance. HAFA be made admissible to Category-III areas where applicable, in addition.

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(b) The proposed rates of HAA is given below:-

Rank of Army & their Equivalent in Air Force & Navy.

Category I(Height from 9000 ft to

15000 ft including uncongenial climate areas

below 9000 ft (Rs. pm )

Category II(Height above

15000 ft).

(Rs. pm )(a) Lt Col and above 4770 7200(b) Major 4185 6300(c) Captain 2970 4500(d) Lieutenant 2385 3600(e) JCO 2160 3240(f) Hav 1665 2520(g) Sep/NK 1215 1800

5.65. Justification. This allowance is justified on the basis of harsh weather conditions and large number of casualties suffered due to enemy action and weather. A detailed analysis of the deployment of Army along LAC/LC/IB has revealed that near similar conditions prevail in many other areas. Presently HAA is divided in two categories i.e Category-I between 9000-15000 ft and Category-II between 15000 ft and above. Military Operations Directorate has identified areas where conditions near similar to that of Siachen exist. These areas have difficult accessibility owing to lack of communication infrastructure, are mostly maintained by air and cut off from administrative bases for prolonged periods. Also the weather, temperature and terrain are very harsh and difficult. Presently, HAA Category-II allowance admissible in these areas is 11.5 times less than the Siachen allowance (Rs 400/- against Rs 4667/- for Sepoy). This is considered to be grossly inadequate, and a great cause of dissatisfaction amongst the troops serving in these areas. A new Category is being proposed to be added in the High Altitude list of areas. This is to offset the harsh conditions being faced by troops deployed in these areas which are comparable to the hardship faced at Siachen. Though the conditions in these places are similar there is no compensation for the discomfort and physical adversity faced by the troops deployed. The extension of Siachen albeit at a lesser rate is an imperative necessity and is strongly recommended.

High Altitude (Uncongenial Climate) Allowance

5.66. The existing and the proposed rate of this allowance for personnel of ASC units (GT Convoys) operating in Srinagar and under eastern and central commands located outside the qualifying areas on return trip basis are as under:-

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Present Rate Proposed RatesRank Rate per trip

completed in 10 days

Rate per trip completed in 12 days

Rate per trip completed in 10 days

Rate per trip completed in 12 days

Lt Col & above 282/- 338/- 1269/- 1520/-Maj 248/- 297/- 1115/- 1335/-Captain 176/- 211/- 790/- 950/-Lt 141/- 169/- 635/- 760/-JCOs incl Hony Comm Offr

128/- 153/- 575/- 690/-

Hav 98/- 117/- 440/- 525/-Sep/Nk 72/- 86/- 325/- 390/-NCs(E) 70/- 84/- 315/- 380/-

Sea Going / Sea Duty Allowance

5.67. Proposal. In case of Officers it is called Sea Going Allowance and for Sailors it is termed as Sea Duty Allowance. The Allowance is presently admissible on pro-rata basis when deployed on all vessels at sea for duration exceeding 12 hours in a day. The proposed rates vis-à-vis the existing rates are as follows:-

Rank Existing Rate Proposed Rate

(a) Cdr & above (Navy) Rs. 2600/- pm Rs. 11700/- pm(b) Lt Cdr (Navy) Rs. 2400/- pm Rs. 10800/- pm(c) Lt (Navy) Rs. 2200/- pm Rs. 9900/- pm(d) Sub Lt (Navy) Rs. 2100/- pm Rs. 9450/- pm(e) MCPO I, II and CPO (Navy)Rs. 1800/- pm Rs. 8100/- pm(f) PO (Navy) Rs. 1200/- pm Rs. 5400/- pm

(g) LDGs and below (Navy) Rs. 1000/- pm Rs. 4500/- pm

5.68. It is proposed that existing 12 hours a day conditionality be removed and this allowance be admissible on all sea-going vessels which are deployed at sea for 120 Hrs or more, in a month, in the case of minor war vessels and 180 Hrs or more in a month in the case of major war vessels.

5.69. The personnel are subjected to very difficult conditions in the Army and IAF whenever the troops move out of permanent locations on exercise/manoeuvres. On the analogy of Seagoing Allowance a separate allowance at the similar rates be extended to these Services, when not in receipt of any other form of compensation. The same be called as Hardship Allowance for the Army and IAF.

5.70. Justification. A ship today sails primarily in peace time for tactical and strategic deployment as also for fleet exercises/work-up. With the extremely heavy

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costs of keeping ships at sea today, optimum utilizations of time of a ships stay at sea is of primary consideration. If a ship sails for 36 hours, the exercise programmes are so designed that at least 28 to 30 hrs are spent in work-up and training activities. Further, the latest warships have very severe restrictions of engine hours. They have to be put to sea for very short periods and optimize their workup activities. This intense “activity” oriented sailing of today calls for maximum effort on the personnel onboard; and once the ship returns from sorties, it is not that the crew relaxes, but prepares for the next sorties which occurs within the next few days. With the intensive nature of sailing today, it is essential that a much higher level of proficiency is maintained by the personnel serving on board. This requirement of constantly displaying the highest level of professional expertise, coupled with a hardship of sea life, as also the working and living environment itself, leads to a very high level of stress and fatigue amongst naval personnel. Troops are posted to Peace Stations for training, rest and refit after spending approximately three years in intense CI / Operational environment. During their stay in these stations, a large number of all ranks have to spend considerable amount of time away from their permanent locations to perform various duties, be it operational, training, disaster management or administrative in nature. Pers / detachments are sent away from the cantonments for guarding / maintaining operational assets, collecting information, carrying out training, firing at field firing ranges, disaster management and so on. These duties are performed in areas (operational, training, natural calamity/disaster affected), akin to field areas under similar living conditions less the threat, as it exists in field. Troops have to perforce stay in tents without any facilities like electricity, sanitation, water etc in extreme weather conditions (temperature rising to 50 degrees in summer). As a result, persons undergo considerable hardships. At present no TA / DA or any other compensation is given to troops while performing these duties.

Hardlying Money

5.71. Proposal. The proposed rates vis-a-vis the existing rates is as follows:-

Category Existing rates Proposed RatesFull Half Full Half

Officers including 200/- pm 100/- pm 900/- pm 450/- pm Midshipmen & Cadets

Sailors 140/- pm 70/- pm 630/- pm 315/- pm

5.72. Justification. This allowance is paid while posted on ship or submarine for hard living conditions and poor environmental habitability onboard ships and submarines. The applicability conditions are to be retained since it would cater for personnel on only certain select class of ships which have extremely poor habitability conditions like minimal toilet and sanitary facilities, high population to facility ratio, extremely cramped living and sleeping places with bare minimum belongings and absolutely no privacy and that have negligible relaxation / recreation facilities etc. All theses hardships have to be borne in conditions of artificial lighting and atmosphere, which are extremely unhygienic to live in.

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SECTION – 4

PERSONAL RELATED ALLOWANCES

Official Hospitality Grant

5.73. The existing and proposed rates are as given below.

Officers Existing Proposed(a) Service Chiefs & Vice Chiefs/Army Cdr and Equivalents

Rs 1000/- Rs 4500/-

(b) Other appointments to the rank of Lt Gen & Equivalent presently in receipt of entertainment allowance

Rs 800/- Rs 3600/-

(c) Appointments to the rank of Maj Gen & Equivalent presently in receipt of entertainment allowance

Rs 600/- Rs 2700/-

(d) Appointments to the rank of Brig & Equivalent presently in receipt of entertainment allowance

Rs 500/- Rs 2250/-

(e) COs of a ship of Capt rank & equivalent presently in receipt of entertainment allowance

Rs 400/- Rs 1800/-

(f) Naval Officer in charge/CO upto Cdr rank presently in receipt of entertainment allowance

Rs 200/- Rs 900/-

5.74. The admissibility of this grant must be extended to all Commandants/CO/OC/ Oi/C of Battalion/Regiment/Unit /Squadron/Flight as per the rank held by them. In respect of Col/Lt Col & below and equivalent holding such appointments, they be authorised this allowance at the same rate as admissible to Naval O i/c /CO upto the rank of Cdr.

5.75. Justification. Established service customs which are vital to develop the necessary rapport, esprit-de-corps and camaraderie amongst unit, Formations and Establishments need to be maintained. This involves entertainment in various forums by Heads of Formations/Establishment. This allowance would partially offset some of the financial burden that entertaining guests by these appointments, as a corollary to their official duty, entails.

Technical Allowance

5.76. Proposal. The Technical Allowance is applicable to Armed Forces Officers. The current and the proposed rates are as follows:-

Existing Rates Proposed Rates

(a) Tier - I Courses Rs. 1,000/-pm Rs. 4,500/-pm(b) Tier – II Courses Rs. 1,500/-pm Rs. 6,750/-pm(c) It is proposed that this allowance be extended to all officers who undergo such or similar courses.

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5.77. Justification. In a fast developing economy like India which is likely to emerge as a global player in the economic front there would always be scarcity of qualified engineers joining the Armed Forces. In order to attract the right material to the Armed Forces it is necessary to provide them with financial incentives. The ever growing technological advancement in the field of military weapons will only place more and more demand for engineers to handle such hardware. Thus there is a requirement to have highly qualified and motivated personnel capable of handling the high end technology. The Technical Allowance will assist in this organisational goal. The list of courses would be reviewed by the Services HQ to ensure optimum and relevant utilisation of resources.

Professional Allowance

5.78. Background. The Service Officers join with the minimum entry qualification required for their branches. Where the entry qualifications are common, they are allotted Arm/Service/Branch based on preference and performance. However, with passage of time, they acquire qualifications and higher levels of competence which enables them to under take specialized task in professional manner.

5.79. Proposal. It is proposed that Non-Technical officers who attain such level of competence need to be compensated on equal terms as that of Tech officers. These officers be authorised professional allowance at Tier I and II rates applicable to Technical Officers based on the sensitivity and organizational importance of the qualification achieved. Each service would identify the course to be included in Tier I or II of the allowance in consultation with MoD.

5.80. Justification. While the technical branch officers are compensated for acquiring additional professional and academic qualifications, the officers of other branches are not suitably compensated. All Officers attain such level of competence through in-service training or through academic courses by their individual effort. These qualifications enable the organisation to employ them on duties having crucial impact on the achievement of organisational goals. The officers after such qualifications are able to handle more stressful employment and are able to discharge their duties more skillfully and efficiently. Such a dispensation would also promote inter-operability. The officers need to be suitably compensated on such qualifications.

Aeronautical Technical Allowance

5.81. This allowance is admissible to those technicians who have successfully qualified in TETTRA, TTCU, MCF or similar courses. The technicians are authorized to Maintain or service aircraft and related system. Present rate of this allowance is Rs 100 per month. It is proposed to increase the rates to Rs. 450/- pm.

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Flight Charge Certificate Allowance

5.82. The following is proposed.

(a) Flight Charge Certificate allowance is recommended for enhancement to the rates shown below:-

(i) JWO & above and equivalents - Rs.900/- pm(ii) Sergeant & below and equivalents - Rs.565/- pm

(b) It is proposed to extend this allowance to all PBOR holding Flight Charge Certificate and carrying out these duties.

5.83. Justification. While in the Navy, the allowance is admissible to Chief Artificer and above, in the case of Air Force and Army it is admissible to JWO and Nb Sub only. Although the MoD letter No 1(26)/97/VI/D(Pay/Services) dated 29 Feb 2000 explicitly states that, “the Flight Charge Certificate Allowance as applicable to Navy will be extended to the corresponding personnel in the Army and Air Force at the same rates and on the same terms and conditions” while specifying the rates, only the rank of JWO was given omitting the word “and above” which exists in the case of Navy. The above contradiction in the authorization is proposed to be removed and uniform rates and applicability conditions, is therefore, proposed for the three services. The extension of the allowance to those below Air Artificer is also recommended in order to motivate the younger generations to holding independent charge of machinery/equipments.

Airworthiness Certificate Allowance

5.84. The existing rate and proposed rates is given below:-

Existing Rates Proposed Rates

(a) Aviation Trade PBOR with Rs.75/-pm Rs.340/- pmservice of two to ten years

(b) Aviation trade PBOR with Rs.150/-pm Rs. 675/- pmservice more than ten years

5.85. Justification. Those few who are responsible for finally certifying an aircraft airworthy carry on awesome responsibility which is totally out of proportion with that carried by their peers involved in maintenance of any means of surface transportation, civil or military.

Flight Operations Allowance

5.86. Background. Aircraft are a potent weapon platform in any Armed Forces. It is a functional necessity that their maintenance and servicing, be it in war or peace, is carried out in blast pens / hangars close to the actual runways. These places are is

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devoid of any shade or shelter and the working condition in the Squadrons is taxing to say the least. This become even more pronounced when compared to comparable personnel posted to the Wing or units other than the Squadrons, who function from building and offices. The personnel posted to operational units performing flight operation duties, are exposed to the vagaries of the weather/climatic conditions 24x7. They face the extremities of weather conditions be it in Rajasthan, Leh or the North East. Be it hot sun, rain or the cold winter morning, they need to be on tarmac preparing Aircrafts for Flight operations. While the actual flying starts around sun rise, these personnel report at least two and half hour before to prepare the aircraft for flight operations. The freeze on creation of new establishment, has forced units to function below their established strength. This has resulted in the same persons who carried out their duties during the morning flying to report for night flying operations which is very common in all flying units since training young pilots to be operational both during day and night is a continuous process. It is also pertinent to mention runways and operational units are located far away from domestic areas, necessitating that these technicians travel a very large distance at least twice daily to discharge their official duty of conducting flying operation during day and night. This leaves him with very little time to be spent with his family and children. Majority of the time is spent in carrying out activities related to flight operations standing under the open sky and in going up and down to office from home at least twice covering a minimum of 5 to 10 kms one way in most the Air Force Stations. There is no financial benefit given to these personnel to make their job attractive. Besides the extended hours of work in inhospitable conditions on Tarmac and dispersed blast pens, the personnel employed on flight operations are expected to work on a zero errors environment, as any error on the maintenance of a high tech aircraft can lead to catastrophic consequences. It is an understatement to say that the job of personnel employed on flight operations are both physical and mentally stressful. The present state of affairs has made posting to a flying unit, a time of suffering, rather than a matter of pride and jubilation.

5.87. Proposal. For the reasons stated above and for the hardships faced by such personnel in comparison to others of same trade working in working in relatively cosy environs, a financial compensation of Rs. 1000/- pm is considered appropriate and a small compensation for the arduous task performed by these personnel. Grant of such a compensation to be called as “Flight Operation Allowance” is proposed.

5.88. Justification. The authorisation of Flight Operation allowance will give such personnel the satisfaction of being posted to a flying unit since the best are always selected for these jobs in the three Services in view of the huge responsibility resting on them towards safe flying operation. This financial incentive will not only satisfy the individual to over bear the rigours of live but also make the job attractive to continue with the organization since with high levels of technical competence, the demand for such individuals is very high in civil market. This allowance will not be concurrently admissible with Sea Service Concessions.

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Air Stewards Allowance

5.89. The present rate of Rs. 300 pm is proposed to be enhanced to Rs 1350/- pm. This allowance be extended to cover all Catering Assistants performing the duties of Air Stewards in the communication flights established at Commands.

5.90. Justification. The Catering Assistant has to plan the menu, ensure its preparation/procurement, proper packing, preservation and loading in the aircraft. This also involves exercising extra precaution for security reasons, which is of vital importance. During flights, the Catering Assistant is expected to serve food carefully and with proper decorum. He is also responsible for the physical comfort of VVIPs/VIP during the flight. With the present internal security environment, more and more VVIPs/VIPs are being flown by Air HQ Communication Squadron and Communication Flights of Commands. As such the importance of the functions of the Catering Assistants employed as a Steward in Air Headquarters Communication Squadron and Communication Flights of IAF Commands needs no emphasis. However, individuals do not volunteer for this job considering the stress and strain involved in performing the duty to perfection. In order to motivate Cat Asst to take up this assignment a handsome financial benefit in the form of Air Steward Allowance is considered necessary.

Air Despatch Allowance

5.91. Proposal. It is proposed that the Air Despatch Allowance for Other Ranks be raised to Rs. 540/- per month.

5.92. Justification. Dropping of supplies from the air onto forward dropping zones is a hazardous duty in which an individual has to operate from an open belly aircraft, and physically eject supplies from the aircraft. The supplies have to be dropped in a specified time frame and with precision. During the course of operation the individual is constantly subjected to hazardous weather and wind conditions which has a constant effect on his health. In addition, he has to retain his balance in order to ensure he is not accidentally ejected out. Hence the present rates of Air Despatch Pay be adequately enhanced.

Qualification Grant

5.93. The present rates and proposed rates of Qualification Grant are as under:-

Category Existing (pm) Proposed (pm)

(a) Cat I Courses Rs.10,000/- Rs. 45,000/-(b) Cat II Courses Rs. 7,500/- Rs. 33,750/-(c) Cat III Courses Rs. 4,500/- Rs. 20,250/-(d) Cat IV Courses Rs. 3,000/- Rs. 13,500/-(e) MNS Officers Rs. 3,000/- Rs. 13,500/-

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5.94. The list of courses needs to reviewed and revised regularly by SHQ in order to ensure that new courses are added to the list which will enhance the competence level of the individuals of the Armed Forces.

5.95. Qualification Grant be authorised to PBOR in four categories of Rs. 27,000/-, Rs. 22,500/-, Rs. 13,500/- and Rs. 9,000/- for various courses which would enhance their employability on various tasks related to the Armed Forces.

5.96. Qualification Grant to be extended to Medical Officers of the Armed Forces on the same terms and conditions as applicable to other officers.

5.97. Justification. Qualification Grant is required to encourage the attainment of additional qualification and expertise of officers and PBOR in the field of sophisticated weapons and equipment held with the services. The courses admissible for Qualification Grant were last revised by V CPC. Therefore, it can be seen that the rates of these qualifications are woefully inadequate keeping in view the advancement of technology and the introduction of new weapons and equipment since the last two decades. This is true in respect of MNS officers also in view of the advancement of medical science and the era of super specialisation. It was also recommended by the Fourth Pay Commission that the Government may periodically review various courses for which Qualification Grant is payable, to determine the need for continuance.

Qualification Pay

5.98. The existing and the proposed rates are given below :-

Category Existing (pm) Proposed (pm)

(a) Cat ‘A’ (ATC/FC) Rs. 800/- Rs. 3600/-(b) Cat ‘B’ (ATC/FC) Rs. 600/- Rs. 2700/-(c) Master Aviation Inst Rs. 250/- Rs. 1250/-(d) Senior Aviation Inst (Class I) Rs. 200/- Rs. 900/-(e) Senior Aviation Inst (Class II) Rs. 140/- Rs. 630/-(f) Aviators – Master Green Rs. 200/- Rs. 900/-(g) Aviators –Green Rs. 140/- Rs. 630/-

5.99. Justification. It can be seen from the qualification that they are either meant for aircrew or those related with flight operations. The proficiency level achieved by these officers not only improve their own professional skills but also contribute very heavily in the organisational efficiency especially in the filed of operations. Thus it is necessary to provide an attractive financial benefit to encourage officers to improve their operational calibre.

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Super Specialist Allowance

5.100. Background. Super Specialists e.g. Cardiothoracic surgeon, vitreo-retinal surgeon, Cardiologist, Neuro-anaesthesiologist, Liver/Kidney transplant surgeon, maxillofacial surgeon etc. in the AMC and ADC are not being given any Super Specialist Allowance commensurate with high precision work that they carry out.

5.101. Proposal. Super specialists of Army Medical Corps and Army Dental Corps {(Three year degree/minimum 2 year work experience (recognised by MCI)} after obtaining a post graduate degree, to be granted only during the currency of employment as a super specialist an amount of Rs. 4,500/- per month as Super Specialist Allowance. Those getting Super Specialist Allowance will also be eligible for specialist allowance.

5.102. Justification. Super specialists working in Armed Forces Hospitals are second to one. They are required to be compensated for the highly technical and critical life and limb saving patient care that they carry out daily. Such a dispensation would go a long way to motivate and retain them in service.

Short Hand Allowance

5.103. This allowance is admissible to PBOR of Air Force and Navy. It is paid to only those PBOR who are employed on shorthand duties. Those individuals who have gained this expertise as part of their trade duties and are extensively used for taking down notes/memos from higher officials are paid this allowance. The existing rate of this allowance is Rs.150/- PM. It is proposed to increase the rate of this allowance to Rs. 675/- PM. It is also proposed to extend this allowance to similarly placed PBOR of the Army.

JAG Department Examination Rewards

5.104. Proposal. It is proposed to enhance the existing rate of reward from Rs. 3,200/- to Rs. 14,400/-.

5.105. Justification. Any officer aspiring to join the JAG department and similar organisation in the other two services, is required to maintain a reasonable well equipped library of his own for the efficient discharge of his duty. This is all the more important for an officer preparing for the JAGs departmental examination. Candidates appearing for the examination are required to acquire a high degree of knowledge and understanding of not only military law but also all aspects of such important civil criminal procedure code, law of evidence, constitution law and international law. Keeping in view the steep rise in the cost of books and the fact that the reward amount has not been revised ever since 1997, it is strongly recommended that the said amount be now increased to Rs 14,400/-.

Uniform Related Allowances (Officers)

5.106. Background. Officers are entitled to OTK on commissioning and thereafter every seven years for provisioning of uniforms. The rates for the Navy are

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higher than those for the Army and the Air Force. The existing rates of uniform related allowance for officers are given below: -

Allowance Service Rate(Rs)

(a) OTK ARMY, IAF 6000/- Per seven years (b) OTK Navy 7000/- Per seven years (c) OTK MNS Officers 2000/- Per seven years(d) Distinctive Uniform MNS Officers 200/- One time up to Allowance the rank of Brigadier(e) KMA All three services 200/- Per month(f) KMA MNS Officers 100/- Per month

5.107. Proposal. The rate of initial OTK is recommended to be increased by 4.5 times including the distinctive uniform allowance admissible to MNS officers. This allowance is proposed to be paid to the under-trainee officers only in the training institutes. Thereafter, it is to be subsumed in KMA which is to be renamed as Kit Maintenance and Renewal Allowance. The proposed rate of this allowance is Rs. 2000/- pm and Rs. 1000/- pm for officers and MNS respectively. Officers of Armed Forces units deployed on ceremonial duties to be authorised Kit Maintenance and Renewal Allowance at the rate of Rs. 3000/- pm. This allowance should be linked to CPI to cater to cost escalation of raw materials and revised annually.

5.108. Justification. Officers have to procure about 14 different types of uniforms to be worn at various occasions. OTK is highly insufficient for the purpose. The expenditure incurred by the officer is over and above the civil dress one needs to procure to meet the social commitments. The grant of OTK once in seven years does not address the requirement of continuous need for replacement of uniforms which are won on a daily basis by this category of personnel. It is therefore justified that the rates of KMA be enhanced considerably subsuming the OTK granted for renewal of uniforms once in seven years. The suggested hike will enable officers to offset to some extent the amount spent regularly by them on procurement of various uniforms and accoutrements.

Uniform Related Allowance (PBOR)

5.109. The proposed rates of these allowances are as follows: -

Allowance Occasion Rate(Rs)

(a) Outfit Allowance Grant of Hony Commn 14,400/- (Army, IAF)JCOs & eqvt; (one time) 18,000/- (Navy)

(b) Outfit Allowance NCOs Promoted to 2,250/- (one time)JCOs & eqvt

(c) Mufti Allowance All Recruits 2,000/- (one time)(civilian clothing Allowance)

(d) Clothing Allowance Personnel of AFLU Units 675/- pm.

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5.110. The rates of these allowances be reviewed every year so that the cost factor is taken care of. The option of claiming clothing allowance admissible to personnel posted to liaison units be extended to PBOR of Army and Navy on similar terms of conditions.

5.111. Justification. General hike recommended in the rates of all the allowances is 4.5 times. However, for certain personnel related allowances a higher than the normal increase is proposed taking into consideration the inflation in cost of clothing material. The present rates of Mufti Allowance is considered too meagre and hence recommended to be increased ten folds to enable individuals to purchase at least two pairs of civil dresses which will make him distinctively different from other civilians.

Composite Personal Maintenance Allowance (PBOR)

5.112. The following rates of CPMA are proposed for PBOR of the three services:-(a) Hair Cutting Allowance Rs. 100/- pm(b) Washing Allowance Rs. 400/- pm(c) Rum Allowance Rs. 75/- pm(d) Soap Toilet Allowance Rs. 50/- pm (e) Clothing maintenance Allowance Rs. 125/- pm

Total Rs. 750/- pm

5.113. Rum Allowance. The proposed rates, which should be revised every two years, for field areas are as follows:-

(a) Field Areas below 3000 ft - Rs. 175/- pm(b) Field Areas 3000 ft – 4999 ft - Rs. 250/- pm(c) Field Areas 5000 ft – 8999 ft - Rs. 275/- pm(d) High Altitude Areas - Rs. 400/- pm

5.114. PBOR of units deployed on ceremonial duties to be authorised CPMA at the rate of Rs. 1500/- pm. The Nursing Assistants in the Central Government are paid washing allowance at pre-revised rates of Rs. 75/- pm. Extension of the civil rates of washing allowance to Armed Forces Nursing Assistants is proposed over and above the CPMA.

5.115. Justification. The suggested increase in each of the component of Composite Personal Maintenance Allowance (CPMA) is discussed below: -

(a) Hair Cutting Allowance/Hair Cleaning Allowance. A soldier in the Services is required to be well turned out. Therefore, it is a service requirement that he is able to clean his hair or have a hair cut at least once a week. Taking an average of Rs. 25/- per hair cut, the monthly expenditure works out to Rs. 100/- pm.

(b) Washing Allowance. A soldier has to be smartly turned out at all times, by wearing clean and well ironed uniform. Due to the increase in cost of daily

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washing and ironing charges the minimum expenditure in the present amounts to approximately Rs. 400/- pm.

(c) Rum Allowance. It is pertinent to note that certain amount of liquor is authorised to troops as ‘Medical Comforts’ under hard living conditions on the recommendation of medical authorities. In view of the increase in rates of rum, it is proposed that this allowance be admissible at Rs. 75/- pm in peace areas. The increase in heights must cater for higher quantum of liquor as is the case presently in order to overcome the vagaries of nature.

(d) Soap Toilet Allowance. An individual requires a minimum of three toilet soap cakes per month. Taking the cost of the toilet soap as Rs. 17/- presently, the average monthly expenditure works out to Rs. 51/- pm or say Rs 50/- pm.

(e) Clothing Maintenance Allowance. Clothing Maintenance Allowance encompasses alteration of clothing issued, polishing with Brasso and Blanco of certain accoutrements and equipment.

(f) Ceremonial Duties. PBOR of units deployed on ceremonial duties need to maintain a very high standard of uniforms in view of the visits by foreign dignitaries and national functions. Nursing assistants in Armed Forces are also involved in patient care, they require to regularly wash their clothes to maintain high level of hygiene.

Spectacle Allowance

5.116. The existing and the proposed rates are as shown below:-

Category Existing Proposed

(a) For spectacles with normal lenses Rs. 65/- Rs.500/-(b) For spectacles with bifocal lenses Rs 125/- Rs.1000/-(c) Contact lenses Nil Actual cost

(d) Repair and making charges be reimbursed at actuals.

5.117. Justification. The rates for reimbursement of normal spectacles, bifocal spectacles and for repair of spectacles frames or replacement of lenses were last fixed in 1997. Taking into consideration the average market price it is justifiable that the rates be enhanced as proposed. The repair and making charges be reimbursed as per actuals. Where the medical authorities have recommended contact lenses considering the nature of job, the actual cost of contact lenses be reimbursed.

Acting Allowance

5.118. Proposal. The rates of acting allowance are proposed to be revised as under: -

(a) When officiating as Capt/equivalent - Rs.1350/-pm.(b) When officiating as Maj/equivalent - Rs.1800/-pm.

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5.119. Justification. A Junior Commissioned Officer and equivalent while officiating for appointments tenable by Capt and Maj equivalents are entrusted with additional responsibilities of that particular rank. The rates of the allowance have been proposed to be enhanced by the same factor which has been applied for all other allowances.

Funeral Allowance

5.120. Proposal. It is proposed that the rate of funeral allowance be increased to Rs.10,000/-.

5.121. Justification. Forces personnel are required to sacrifice their lives for the country. Therefore, whether it be in peace or war, whenever he dies, the expenditure incurred on his last rites justifiably should rest with the Government.

Monetary Allowance For Gallantry Awards

5.122. Proposal. The existing rates of monetary compensation attached with various gallantry awards and that proposed to VIth CPC are as under:-

Sl No.

Name Existing rates(pm in Rs.)

Proposed rates(pm in Rs.)

(a) Param Vir Chakra (PVC) 1,500/- 15,000/-(b) Ashok Chakra (AC) 1,400/- 14,000/-(c) Mahavir Chakra (MVC) 1,200/- 12,000/-(d) Kirti Chakra (KC) 1,050/- 10,500/-(e) Vir Chakra (Vr C) 850/- 8,500/-(f) Shaurya Chakra (SC) 750/- 7,500/-(g) Sena/Nao Sena/Vayu

Sena Medal (Gallantry)250/- 2,500/-

5.123. Justification. Personnel of the Armed Forces who display conspicuous bravery in the face of the enemy or anti-national elements over and above the normal call of duty are national heroes. It is for the nation to recognize them, place them on a pedestal and set them as examples to be glorified and emulated by successor generations. Whilst considering the monetary allowance for the gallantry awards, the Pay Commission may like to keep in mind their total numbers. This should enable the CPC to know the total financial implication of even the most liberal awards.

Reward for Meritorious Service

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5.124. The following awards are admissible to PBOR for meritorious service. The

existing and proposed rates are given below :-

Category Existing Proposed

(a) Annuity for MSM to JCOs Rs. 200/- (pa) Rs 900/- (pa)(b) Gratuity for Long service & Rs. 200/- Rs 900/-

Good Conduct Medal (one time) (one time)

Submarine Technical Allowance

5.125. This allowance is paid to Naval Artificers and Mechanicians for the period they are deployed on submarine maintenance duties, since there are no Shipwrights sailors onboard the submarine. The existing rate of allowance admissible to Artificers and Mechanicians (Engineering) is at the rate of Rs. 100/- pm. It is now proposed to seek enhancement of this allowance to all sailors carrying out this task on qualifying the Submarine Qualifying Board at the rate of Rs. 450/- pm.

Hydrographic Survey Allowance

5.126. Proposal. The existing and proposed rates are given below.

Existing Proposed

(a) Surveyor Class – IV Rs 400/- pm Rs 1800/-pm(b) Surveyor Class – III Rs 500/- pm Rs 2250/-pm (c) Surveyor Class – II Rs 600/- pm Rs 2700/-pm(d) Surveyor Class – I Rs 700/- pm Rs 3150/-pm(e) Charge Surveyor Rs 700/- pm Rs 3150/-pm(f) Non Surveyor Officers

Serving onboard ships Rs 200/- pm Rs 900/-pm(g) Survey Recorder- III Rs 100/- pm Rs 450/-pm(h) Survey Recorder – II Rs 150/- pm Rs 675/-pm(j) Survey Recorder – I

(PO & Below) Rs 200/- pm Rs 900/-pm(k) Survey Recorder – I

(CPO & Below) Rs 250/- pm Rs 1125/-pm(l) Non Surveyors Sailors

Serving onboard ships Rs 50/- pm Rs 225/-pm

5.127. Justification. During the survey season, the ships are employed on the Hydrographic surveying tasks which are in Indian waters and abroad. Since the Hydrographic surveys are carried out at remote locations, in uncharted/poorly charted area, the working conditions of Hydrographical surveys ships are not at all congenial. Hydrographic survey on one hand requires skill, competence, dedication and experience, whilst on the other it involves prolonged periods at sea, operating in

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inhospitable terrains with attendant problems of mental and physical stress. The cadre, which is totally voluntary, faces numerous problems of shortages.

Unit Certificate And Charge Certificate Allowance

5.128. Proposal. The following is proposed:-

(a) Unit Certificate. Rs. pm .

(i) Lower Rate 750/-(ii) Higher Rate 1500/-

(b) Charge Certificate. Rs. pm.

(i) Lower Rate 1500/-(ii) Higher Rate 2250/-(iii) Special Rate 2700/-

(c) Further, it is proposed to extend the allowance to following categories of sailors at the under mentioned rates.

Category Applicable rate

(i) Artificers and Mechanicians Lower Charge Certificate& EAP/EAR Mech (P)/Mech (R) on @ Rs. 1500.00 per monthqualifying Chief course

(ii) Technical sailors of Y group in Lower Unit Certificate ME/EMP/EMR categories on acquiring @ Rs. 750.00 per monthauxiliary Watch Keeping Certificate/Watch Keeping Certificate

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5.129. Enhancement of Rates. The successive erosion of this allowance is as shown under:-

Year Pay scale Allowance Details RemarkRate Amount

Rs.% of BP

ERA IIIUnit Allowance 1968 165-5-175

Lower 25 15.15

Higher 50 30.3

1973 (III CPC)

319-10-441Lower 25 6.39 No change in III

& IV CPC

Higher 50 12.8

1986 (IV CPC)

1425-25-1550

Lower 38 2.66 Allowances revised in 1983

Higher 75 5.261997 (V CPC)

5450-100-7450

Lower 75 1.37

Higher 150 2.75

CHERACharge Allowance 1968 257-10-287

Lower 50 19.45Higher 75 29.18Special 100 38.91

1973 (III CPC)

565-16-640Lower 50 8.84 No change in III

& IV CPC.Higher 75 13.27Special 100 17.69

1986 (IV CPC)

1880-40-2080-50-2730

Lower 75 3.98Higher 113 6.01Special 135 7.18

1997(V CPC)

6240-140-8760

Lower 150 2.40Higher 225 3.60Special 270 4.32

5.130. It can be seen that the allowance has been reduced from about 15 to 30 percent at salary in 1968 to a meagre 2 to 5 percent at present. This allowance therefore does not serve its purpose of financial incentive for retention of highly skilled

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sailors for whom abundant opportunities exist in the Merchant Navy and outside industries.

5.131. Extension of Applicability to Artificers/Mechanicians of Electrical Branch . The Artificers and Mechanicians of Power and Radio track are highly skilled personnel employed for maintenance/repairs of complex Radars, Sonars, Gyros, Fire Control Systems for Guns/Missiles etc. The level of responsibility shouldered by these personnel as Section-in-Charge is very high. Further, at present there is no incentive for qualifying higher rank examination and continuation in the service as there is a great demand for such personnel in the industry. It is thus proposed that lower Charge Certificate Allowance @ Rs. 1500 pm be admissible to Artificers/Mechanicians on qualifying Chief course at professional training institute.

5.132. Technical Sailors ‘Y’ Group. The technical sailors of ‘Y’ Group after qualifying Auxiliary Watch keeping Certificate (in case of Power and Radio Mechanics) are employed on watch keeping duties on various auxiliary Machineries/Systems located in confined spaces. These personnel are accountable for correct operation, watch keeping and maintenance/repair of the machineries to ensure round the clock availability of engineering services to all consumers’ onboard ships. Majority of Auxiliaries are required to be run even while the ship is in harbour. There being no incentive for such high level of responsibility/skill. It is proposed that unit allowance at lower rates i.e. Rs. 750/- pm be admissible to the sailors on clearing AWKC/Watch keeping board.

Boiler Watch Keeping Allowance

5.133. Background. Presently there is no financial incentive to Boiler Watch Keepers in the Naval ships due to which there is no encouragement for naval personnel to assume such responsibilities. This has led to shortages of such trained personnel. The requirement for this category of personnel has increased with the induction of two new steam ships namely INS Jalashva (A Landing Platform Dock ex USA) and Vikramaditya (Air Craft Career “Gorshokov” presently being refitted in Russia and likely to be inducted by end 2008).

5.134. Proposal. In order to address the acute skill shortage and encourage qualified sailors to sign up for further service it is proposed to introduce Boiler Watch keeping Certificate qualifying allowance @ Rs. 2000/- per month. This allowance would be applicable to all personnel of Leading Rank and above of the Engineering Branch on obtaining the Boiler Watch keeping Certificate.

5.135. Justification. There is an acute shortage of Boiler Watch Keeping Certificate (BWKC) qualified steam sailors. All efforts to retain the BWKC qualified sailors have proved futile due following reasons.

(a) Harsh Working Conditions. The average temperature near the boiler drums goes upto 70 degrees.

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(b) High Responsibility. The Boiler Watch keeping is in charge of the boilers and all associated auxiliaries and is responsible for safety of all personnel working under him in the Boiler Room.

(c) Extended Sea Time. The BWKC qualified sailors are posted on ships for about 90% of their engagement period due to shortages in the Cadre.

(d) Better Job Opportunities in the Civil Sector. Job opportunities for qualified sailors are abundant in the Process Industries, Thermal Power Plants & Hotel Industry (for Central heating) etc.

(e) Extended Working hours in Harbour. Unlike other propulsion system a boiler system takes a long time (about 8 hours for preparation, flashing up and reaching operating steam temperature and Pressure) to prepare the steam propulsion plant. It takes equally long time to shut the plant. In addition the detailed inspection and maintenance activities like furnace inspection / clearing etc involve intense physical labour in constricted spaces. Thus a steam ship engineering sailor has to perforce work for extended hours, even while in harbour.

UAV Crew Skill Allowance

5.136. Background. The perspective plan of the armed forces envisages large induction of UAVs. In order to provide an incentive to keep the young officers and PBOR involved in flying UAVs motivated to handle such a highly responsible and skill oriented job, it is proposed to provide `UAV Crew Skill Allowance’.

5.137. Proposal. It is proposed that officers and PBOR be authorised this allowance at 50% of flying allowance for their respective rank.

5.138. Justification. Presently there are limited numbers of UAV crew available in the Armed Forces. There are no volunteers are forthcoming for this highly skilled job of operating UAVs. Therefore, it is increasingly becoming difficult to motivate officers for such task specially when there are no incentives. Surveillance being the mainstay of the armed forces, to have a cutting edge crew available for this task some lucrative incentive has to be provided. This would assist in attracting and motivating dedicated lot of officers and PBOR who would then work with full zeal and perseverance for operating such a high tech and important war machine.

TA Bounty

5.139. This allowance is paid to personnel of Territorial Army when they are embodied for training. The existing and proposed rates are as given below:-

Category Existing Proposed

(a) Officers Rs. 450/- pm Rs, 2025/- pm

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(b) JCOs Rs. 300/- pm Rs. 1350/- pm(c) OR Rs. 175/- pm Rs. 790/- pm

Camp Allowance

5.140. This allowance is paid to personnel when they are called up for training. The existing rates is Rs. 10/- per day which is ridiculously low. It is proposed that when free boarding and lodging is provided, TA personnel should be paid 25 % of DA as applicable to others.

Service Incentive Allowance

5.141. Background. The booming economy with an annual salary hike of 12-15% for the employees in the private sector coupled with stagnant salaries in the government sector for the last one decade has created conditions where the officer cadre in the Forces is keen to leave service and join private sector. The problem though faced across all the Branches, Arms and Services; it is more severe for certain categories like the pilots.

5.142. The Armed Forces officers are subject to respective Service Acts and have not been given any liberty to leave service under any circumstances except when specifically permitted by competent authority. There is no provision for them to leave service even at the cost of forgoing pension. This leaves the officer highly demoralized and trapped. Some officers feel that they are bonded till the age of superannuation. There is an urgent need to address the problem by introduction of service incentive allowance.

5.143. Proposal. The following is proposed.

(a) Service Incentive Allowance (SIA) is proposed to compensate all PC officers for their continued stay in service for denial of exit and the impact of market forces and to act as an incentive for continued service by the officer

(b) SIA is proposed at one year gross salary at the end of 15 th, 25th and 30th

year of service (excluding situational allowances). Officers with more than 15, 25, 30 years of service at the time of introduction of the allowance be also entitled to this allowance.

5.144. Justification. Retention of officers is a problem in services from 10th

year of service for the following reasons:-

(a) Individuals at this stage are young and find themselves competent and want to seek alternate employment for the following reasons.

(b) Steep pyramidal structure of promotion now starts to dawn on them and it brings in uncertainty of career progression.

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(c) Officer has received feed back on Appraisal Reports.

(d) The Officer has also got a feedback from Short Service Commissioned Officers who have left service and are doing very well outside in the private sector.

(e) They feel that they have already repaid for what service has taught them. e.g. A pilot feels that when a company trains a pilot, they have a fixed liability only for five years with the company.

(f) Family commitment increases as children are growing up. The individuals have to choose a line which assures them of an adequate take home salary either monthly or as a grant.

(g) At this stage organisation must provide assurance of additional emoluments in the form of service incentive allowance i.e. if the officer serves 10-15 years then one year’s last drawn gross salary less situational allowance be paid to the individual.

(h) At 20 year of service the officer has earned his pension. This itself will be a factor for him to leave the service and needs to be countered by another service incentive for longer stay in the services.

(j) If the officer opts to serve from 21 to 25 years then on completion of 25 years one year’s gross salary less situational allowance as applicable at the end of 25th year be paid to the individual. At the end of 30 years of Service the officer is at his peak of directional and macro level planning/decision making, which makes him eligible for the next grant of one year’s gross salary less situational allowance as applicable.

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SECTION – 5

PROPOSALS ON TA/DA ENTITLEMENTS ON DUTY

5.145. Daily Allowance The rates were fixed in 1997 and need to be revised to make them more compatible to the existing economic scenario. DA is recommended to be increased by a factor of 4.5 times. The rates must be reviewed yearly based on CPI to cater to increase in cost of living.

5.146. DA when staying in a Hotel charging scheduled tariffs There are occasions when mess accommodation is not available for Service personnel on temporary duty or a Service Mess is not available at the temporary duty station. Under such circumstances, Service and defence civilian officers should be entitled to DA rates prevalent in ITDC hotels / Rail Yatri Niwas as per class of accommodation given below. These rates must be reviewed once a year based on the class of cities.

(a) Maj Gen and equivalents - Five Star tariff of ITDC Hotels (b) Lt Col to Brig and equivalents - Four Star tariff of ITDC Hotels(c) All other commissioned - Three Star tariff of ITDC Hotels

and Group ‘A’ officers(d) PBOR - AC rooms rates of Rail Yatri Niwas(e) NCs(E) - Dormitory rates of Rail Yatri Niwas

5.147. Permanent Transfer Entitlements

(a) Composite Transfer Grant . The existing rate caters for packing expenses, journey daily allowance, road mileage and cartage only. The entitlement also needs to cater for porter/coolie charges, breakages, insurance, disturbance etc. It is recommended that CTG at a uniform rate of two months basic pay be admissible to Officers and PBOR. For changes in residence necessitated due to service reasons i.e. non availability of entitled accommodation etc. the Composite Transfer Grant restricted to one-third of CTG entitlement be also authorised.

(b) Baggage Entitlements. Transportation charges for entitled baggage should be minimum charges levied by railways for part consignment of personal goods subject to the baggage entitlement. Further the current weight of baggage for entitlement on permanent moves was laid down long time back and does not cater for the baggage of a modern day household. Due to improved standard of living and availability of a number of common user appliances like refrigerator, washing machine, Air-conditioner etc, the volume and weight of house hold items have increased. In other words improvement in standard of living requires higher baggage authorisation. It is proposed to enhance the baggage entitlements as given below:-

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Allowance To whom granted

Existing Qty

ProposedQty

Baggage Entitlement

16400 & Above

8000-16400

6500-8000

4100-6500

Below 4100

6000 kgs

6000 kgs

3000 kgs

1500 kgs

1000 kgs

9000 kgs

9000 kgs

4500 kgs

2250 kgs

1500 kgs

5.148. Travel by Air. All Commissioned officers on duty must be authorised to travel by Air. When a non-entitled individual is required to proceed by air for operational/urgent administrative reasons, the CFA to authorise such moves should be the Controlling Officer. The period of travel from Leh to Chandigarh/Jammu be extended from existing 15 Nov to 15 Mar to 15 Oct to 15 Jun every year due to the closure of Zojila Pass.

5.149. Road Mileage Allowance. Presently Commissioned Officers in the pay range of Rs.18400/- including rank pay are authorised to claim RMA by ordinary taxi where as the civilian counterparts drawing similar pay is authorised AC taxi fare when travelling in own car. Thus, there is a disparity in the rates of Road Mileage Allowance during moves on duty. It is proposed that the parity between Colonel and civilian officers drawing Basic Pay of Rs.5100/- as per 4 th CPC be restored (Rule 61 of TR 1991 Edn refers).

5.150. Class of accommodation for rail travel. Officers of the rank of Lt Col and equivalents and above drawing pay of Rs 16400/- and above be permitted to travel by AC-I class on duty. Presently these officers are authorised to travel by AC-II on duty and AC-I on LTC. The proposal will remove the anomalous situation. All PBOR must be authorised to travel by AC-II while travelling on duty.

5.151. Miscellaneous Provisions.

(a) Moves of Families from one Service Hospital to Another on Advice of AMA. The existing provisions available to families of Personnel Below Officer Rank be extended to families of officers also.

(b) Conveyance of Dead Bodies by Air. At the request of the family, free conveyance of the deceased from the place of death whilst on duty/leave to the place of funeral as desired by the family be authorised. All other travelling expenses as admissible on retirement be also made admissible. At present Indian Airlines transports the dead bodies free of cost. It will be appropriate if

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the employer i.e. the government pays for the transportation of dead bodies of its soldiers rather than a company granting it as a concession.

(c) Evacuation of Dangerously ill/Seriously ill Members of Family. The authority to permit evacuation of the sick families of service personnel requiring life saving surgery by service aircraft/civil aircraft be vested with formation commanders at divisional/area level and equivalent in Navy and Air Force.

(d) Conveyance of Relatives of Service Personnel placed on DI List/Attending Funeral of Deceased Personnel. The provision of TR 161 (A)/TR 161 (B) be modified to incorporate travel by fastest means including air both for onward and return journeys in respect of deceased service personnel to conduct customary social rites of the deceased personnel.

(e) Authorisation for Travel/Baggage Entitlements : Re-employed Officers. The travel and baggage entitlements of re-employed officers should be the same of the rank in which retired.

(f) Option to use railway forms. Presently, by travelling on railway forms the expenditure incurred by the defence estimates is higher than the rates paid by ordinary public for their travel. This is due to the fact that railways not only charge full fare but also charge additional fees for handling railway forms. In the era of internet booking, e-seva, cheap air fare, better road connectivity, the option to use the railway forms must be left to individual’s choice. The reimbursable expenditure must be limited to that admissible by authorised class of travel.

(g) Daily Allowance payable to Civilian Candidates. Civilian candidates who are called for interviews for grant of commission in the Armed Forces when not provided with free boarding and lodging are entitled to nominal amounts as Daily Allowance at the rate of Rs. 30/- per day in metropolitan cities and Rs. 20/- in other cities. It is proposed that they should be at par with rates applicable to grade III service personnel.

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SECTION – 6

PROPOSAL ON LEAVE TRAVEL CONCESSIONS

5.152. Increase in Distance limit under 177B/180/184(iii). Most of the Defence establishment are located in North, North West India. While the population from North have the benefit of visiting Home town ever year under Rule 177B of TR, the population from Central, South and East of the country are at a disadvantage since every second year they need to incur additional expenses from their own resources to visit home town. To remove the financial hardship placed on the Armed Forces Personnel from area other than North and North West, the distance limit of 1450 kms under TR 177B be abolished. The similar benefit may be extended to PBOR under rule TR 184(iii). This will enable the officers/PBOR to visit home town/ Leave station every year.

5.153. Travel by Air. Civilian Officers in the pay range of Rs. 12,600/- are permitted to travel by air on duty. Class of travel on LTC for such officers (Maj equiv and above) is proposed to be upgraded to travel by air since the air fares now are comparable to rail fares.

5.154. Allow Service personnel and family members to avail LTC to different places. Allow service personnel and their families to avail LTC under 177B and 184(iii) to visit different leave stations. This will enable the family to have a change. They will be able to visit home town or the duty station of the head of the family for short duration. This is considered morale boosting both for family and head of the family. Also where the children are studying in hostel, they will be able to visit parents on LTC.

5.155. Use of Form ‘D’/FRW/CV be made optional. Use of all types of Railway forms be made optional for the individual. This will reduce expenditure incurred on railway warrants and Form ‘D’ /CVs. It will also enable defence personnel to resort to e-ticketing, i-ticketing etc. Over a period of time this will reduce the dependency on railway forms which in turn will remove the administrative and financial burden of printing, dispatching, stocking and routine checking issues etc. It will avoid frequent and mandatory visits by personnel to railway reservation centres resulting in saving of man hours. The provision will also provide flexibility to individuals in altering their travel plans.

5.156. Increase in Form D Entitlement. It is proposed that the existing entitlement of 6 leaves of Form D be increased to 6 sets. The increase will enable the Officer to break journey and also allow the individual to go on leave more than once. This is essential to overcome the exacting combat stress which this category of personnel are subject to on a permanent basis.

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Additional FRW in CI/Field Concession Areas

5.157. Background. Presently officers serving in Field areas are entitled to concession under TR rule 177C provided the family forgo their LTC entitlement. PBOR are entitled to visit hometown/ leave station once while serving in field areas.

5.158. Proposal. It is, therefore, proposed that an additional FRW/fare for both onward and return journey be authorised for personnel deployed in such areas from duty station to leave station when leave is split during the year.

5.159. Justification. Personnel deployed in these areas suffer from unquantifiable hardships both physical and psychological. The growing number of cases and the trends of fratricide point in this direction. This issue is a cause of great concern for the Armed Forces and the Government alike. It is an established fact that the pressures imposed by working in these areas are relieved when personnel visit their near and dear ones. Clearly the existing concessions for this purpose are inadequate and need improvement.

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CHAPTER VI

SECTION – 1

CONDITIONS OF SERVICE : OVERALL PERSPECTIVE

Introduction

6.1. It is an established fact that hardships of Service life are the main disincentive for young aspirants seeking a career in the Armed Forces. It, therefore, cannot be overemphasized that the Conditions of Service must adequately compensate for peculiar characteristics of a military career. Service conditions of the Armed Forces personnel cannot be compared to those of the Civil Services. Compensations for Conditions of Military Service must, therefore, be unique and should be perceived by the aspirant to compensate for hardships of service life.

6.2. Gone are the days when service personnel were aloof to what was happening in social environment. In present information age, a soldier easily gets to know the disadvantages. He is at a disadvantage compared to others in the civil world enjoying a stable and comfortable life. The pace of improvement of living standard in the civil world is much higher than the one available to him, it further accentuates the sense of deprivation felt by the Armed Forces personnel. Job security hitherto an exclusive characteristic of government service does not mean much in today’s scenario where a rapid increase in the employment opportunities in the private sector are available. In fact even the private sector is finding it increasingly difficult to retain their employees and as a result non-availability of required talent/ skill is a constant complaint. It is therefore, essential that conditions of service of Armed Forces Personnel are made attractive enough to recruit the talent and retain it motivated to the cause.

Scope Of Conditions Of Service

6.3. The scope of conditions of service covers a wide spectrum both pecuniary and non pecuniary in nature. These could include training, promotions, tenures, appointments, transfers, retirements/ resignation/ removals, pay, allowances, working and living conditions, leave, travel and any other benefits necessary to maintain his morale and motivation. For the purpose of examination by the Sixth Pay Commission, it is not feasible to examine an exhaustive list of all that may be covered under the phrase ‘Conditions of Service’. The essence of the phrase lies in the fact that every pecuniary or non-pecuniary benefit flows out of the terms and conditions specified for a particular job/post. Conditions of service and monetary benefits that go with them are totally enmeshed with each other and are inseparable.

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SECTION – 2

CONDITIONS OF SERVICE : PERSONNEL BELOW OFFICER RANK (PBOR)

General

6.4. Indian Armed Forces, the fourth largest in the world, are voluntary Armed Forces on regular terms of engagement. Personnel Below Officer Rank are the major fighting element and comprise approximately 95% of the strength of the Armed Forces. It is a well known fact that it is the man behind the machine who decided the outcome of a war. Sophistication and technological improvements by themselves cannot win a war for the Nation, if the rank and file is not adequately motivated. This fact has been fully demonstrated in the Vietnam war, Indo-Pak conflict of 1971, and the Arab-Israeli wars. Hence any neglect in maintenance of motivation level, which flows out of the Conditions of Service can be disastrous. The condition of service would endeavour to achieve the following: -

(a) Improvement in quality of life.

(b) Improvement in the earning capacity.

Conditions of Service under Review.

6.5. Conditions specific to Personnel Below Officer Rank requiring revision are enumerated below :-

(a) Recruit Emoluments.

(b) Enhancement of Education Standards.

(c) Acting Promotions.

(d) Honorary Ranks and Commission.

(e) Condition of Service PBOR in Territorial Army.

Recruit Emoluments

6.6. (a) Existing Position. Presently recruits in the three services are paid at lower rate of pay than the trained soldiers. However, the service of a soldier is counted from the day of his enrolment and on completion of his training he is given arrears of full pay of a soldier with retrospect effect.

(b) Proposal. It is proposed to make the integrated pay applicable to him instead of present stipend from the first day of his recruitment in training centers.

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(c) Justification. This would ensure that the soldiers are brought at par with civil side where a person starts drawing the pay of his scale right from his first day on the job. On the civil side, there is no formal training and the person acquires skills required of the job on the job itself.

Enhancement of Educational Standard for Enrolment

6.7. (a) Existing Position. Enhancement of educational standards for PBOR enrolment is an ongoing process. In 1986 and earlier, educational standard for combat trades in all three services was enhanced to matric.

(b) Proposal. It is proposed that the educational standards for enrolment in the armed forces be revised as under:-

Pay Group Existing Proposed

X Diploma DiplomaY Matric 10+2Z Non-Matric Matric & below

(c) Justification. The quality of intake of recruits in the past decade due to increased literacy standards in the country has increased from matric to 10 + 2. Also, the armed forces have been equipped with latest sophisticated armament and equipment which require better educated PBOR for handling and operation. Therefore it is proposed to enhance the existing entry level educational standards for PBOR as proposed above.

Acting Promotion

6.8. (a) Existing Position. Acting promotions are granted both at formation level and Service Headquarters. A PBOR becomes eligible for the pay of his acting rank after 28 consecutive days of duty in the higher rank though the grant of pay is with retrospective effect. This system presently exists only in the Army and the Air Force and not in the Navy.

(b) Proposal. It is proposed to abolish the condition of holding unpaid acting rank for 28 consecutive days before converting the same to paid acting rank.

(c) Justification. The condition of holding the acting unpaid rank for 28 days was introduced by the British during World War II to enable Service personnel to reach their units by sea. During this period of 28 days, the PBOR actually wears the higher rank and performs the duties of the higher rank. The proposal will bring all the three services at par in respect of acting promotions.

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Honorary Ranks and Commission.

6.9. Existing Position. In the Armed Forces, Honorary Commission is awarded in recognition of meritorious service to serving JCOs and their equivalents in the other two Services. In addition, selected Havildars and JCOs are granted honorary ranks/ honorary commission after retirement. These honorary ranks and commissions are given in recognition of selfless service of the highest order to elevate their status and prestige, when they return to their native places after retirement. Presently, though there is pensionary benefit for Havildars granted Hony rank of Naib Subedar on retirement, there is no corresponding benefit to JCOs granted Honorary Rank/ Commission after retirement. This is anomalous.

6.10. Proposals. The pay proposed for honorary commissioned officers / ranks should be used for determining non effective benefits including retirement benefits.

6.11. Justification. An honorary rank is granted to the Junior Commissioned Officer and equivalents in the last year of service or after retirement, to very few selected Junior Commissioned Officers and their equivalent in the other two Services for outstanding service. The grant of monetary benefits to those granted honorary commissions after retirement will provide them parity with those granted honorary commission during the last year of service.

Condition of Service : PBOR in Territorial Army

6.12. (a) Existing Position. Presently the terms of engagement for PBOR in the Territorial Army (TA) is 17 years for TA-Sepoy and Naik and 20 years for Havildar.

(b) Proposal. It is proposed to enhance the Terms of Engagement of Territorial Army (TA) PBOR from existing 17 and 20 years for TA-Sepoy and TA-Naik / TA-Havildar to 19, 22 and 24 years for TA-Sepoy, TA-Naik and TA-Havildar respectively.

(c) Justification. The PBOR in the Territorial Army are on contractual basis. By enhancing the terms of engagement they will be available for re -engagement for a longer duration to the organisation.

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SECTION - 3

CONDITIONS OF SERVICE : OFFICERS

General

6.13. Armed forces officers suffer a great disadvantage in comparison to their civilian counterparts due to certain discriminatory conditions of service which need to be addressed.

Conditions of Service During Training Period

6.14. Existing Position.

(a) Training at NDA/Naval Academy. On completion of their basic training at these institutions the 10+2 entry cadets graduate with a Bachelor’s Degree in Humanities/ Science/ Engineering (in case of 10+2 tech entry Navy). These cadets are not entitled to any emoluments during this period of training.

(b) Pay During Training After Graduation. It would be seen that, as in case of the civil services, the minimum entry qualification for the officer cadre of the Armed Forces is graduation including the direct entry candidates. All graduates undergo a 12 months training (18 months for a Direct Entry) at the IMA/AFA in the case of the Army and Air Force and training at sea in case of Navy. During this period no pay is admissible. However, during the entire period the Gentlemen Cadets, Flight Cadets and Midshipmen receive a stipend of Rs 8000/- per month. In contrast, all Group ‘A’/Para military officers receive full pay and allowances from the date of joining at their respective academies and are on probation with attendant benefits of service and pension.

(c) Grant of Commission. These Cadets / Midshipmen are granted commission and are entitled to their first pay and allowances only on successful completion of their training. Their time towards service and pension therefore starts 1 to 1&½ years after joining service academies in contrast to their civilian counterparts. However, in the case of certain other entries into the Armed Forces i.e. Technical Graduates, Meteorological Branch of Air Force, certain specialized categories of three services like law and the Short Service Commission in the Navy and Air Force, the entrants are granted commission into the service from the day of joining. These entrants are thus entitled to pay and allowances and other attendant benefits from day one.

6.15. Proposals.

(a) Stipend at NDA and Similar Training Academies. The entire period of training at these academies should now be covered with a stipend of Rs 10,000/- (Fixed) per month.

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(b) Grant of Provisional Commission. It is proposed to grant provisional commission in the last one year of training prior to passing out of service academies (Sea-Cadet/Midshipman in the case of Navy). Officers on provisional commission to be entitled to pay and allowances of the Commissioned rank with all attendant benefits and this period be counted as service for all purposes. On successful completion of training, the provisional commission to be converted into regular commission.

(c) Personnel Below Officer Rank under training for Grant of Commission. They should be also given the same dispensation as applicable to other trainees of the three services. However during the period of training they should continue to draw pay and allowances appropriate to the rank held at the time of commencement of training. On successful completion of training, they would become entitled to the arrears. This provision is essential since those who do not make the grade have the option of either reverting to their original rank or leaving the Service.

(d) Provisional Commission Period to be counted as Service. The period of provisional commission to be counted as service for all purposes except in the case of relegation. The period of relegation should not be counted either for service/promotion/pension or for increment on the integrated pay scales.

6.16. Justification. (a) Provisional Commission would be on probation thereby providing the existing flexibility of expulsion of a trainee for want of adequate progress during training.

(b) These measures would bring the Services at par with the entry level conditions prevailing in other Central Government Services and make service conditions more attractive and bring in qualitative and quantitative improvement in the level of intake.

Conditions : During Service Period

6.17. Principal Staff Officers (PSOs). The PSOs at the three Services Headquarters have a unique responsibility at conceptual level. It is they, who bring to bear upon their appointments vast experience, professional knowledge, administrative and operational acumen in shaping the future policies of the three Services. These policies are based on the directions of respective Service Chiefs, and the PSOs take decisions having far reaching operational, personnel and financial ramifications on their behalf. Therefore, their role is akin to Secretaries to the Government of India. Considering the above, it is proposed to place the PSOs in the same pay scale as Secretary to the Government of India and Army Commander/Equivalents.

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6.18. Acting Promotion.

(a) Existing Position. Acting promotions are granted both at formation level and Service Headquarters. An Officer becomes eligible for the pay of his acting rank after 21 consecutive days of duty in the higher rank though the grant of pay is with retrospective effect.

(b) Proposal. It is proposed to abolish the condition of holding unpaid acting rank for 21 consecutive days before converting the same to paid acting rank.

(c) Justification. The condition of holding the acting unpaid rank for 21 days was introduced by the British during World War II to enable Service personnel to reach their units by sea. During this period of 21 days, the officer actually wears the higher rank and performs the duties of the higher rank.

6.19. Substantive Promotions.

(a) Existing Position. Substantive promotions are granted by time scale up to the rank of Lt Col and equivalent. The rank of Col and above and equivalent is granted by selection and vacancy based. Presently Colonel/Equiv is promoted to substantive rank after completion of 20 years as per Para 67 of Defence Service Regulations.

(b) Proposal. It is proposed to reduce the service required for grant of substantive rank and pay scale of Colonel/equivalent to 15 yrs (in line with AVSC recommendations).

(c) Justification. The above proposal will ensure reduction in existing deficiency of officers in junior ranks, provide faster career progression and reduce stagnation in lower ranks.

6.20. Ages of Retirement.

(a) Existing Position. At present both intra Service and inter Service variations in ages of retirement exist in the three Services. There is a definite requirement for a revision and rationalization of the ages of retirement between the three Services in order to check the increasing pension bill and also to ameliorate the problems of officers retiring earlier than the ages of retirement in central government.

(b) Proposals.

(i) Flying Branch Officers. The age of retirement for Flying branch officers in the rank of Group Captain and Air Commodore is 52 and 54 years and extendable by two years to 54 and 56 respectively. It is proposed to remove the extendable clause and make the retirement ages for Group Captain and Air Commodore as 54 and 56 years. This would

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bring them at par with same ranks in other branches and services of the Armed Forces.(ii) Law Officers in the Navy . The law officers age of retirement be made at par with the existing ages for retirement of JAG officers of Army.

(iii) Enhancement of Retirement Age. In case of enhancement of retirement ages for the civil services, the same be applicable to the Armed Forces as was done post Vth CPC award.

(c) Justification. The above measures will bring parity within the services and also increase the satisfaction level amongst the officer cadre in the armed forces.

6.21. Conditions of Service: Re-employed Officers.

(a) Existing Position. The existing position is as under:-

(i) Officers upto the rank of Colonels and equivalent are re-employed in their last substantive rank in appointments tenable by officers upto the rank of Captain and equivalent.

(ii) Retirement Age. The re-employed officers retire at 58 years of age.

(iii) Special Increment Admissible For Family Planning Surgery. The Special increment for undergoing family planning Surgery is discontinued on seeking re-employment.

(b) Proposals.

(i) Post implementation of the AVSC – Phase 1, it is proposed that the officers be re-employed in the rank in which they retire but not higher than Colonel(TS) and equivalent

(ii) Retirement Age. The re-employed officers age of retirement to be increased to 59 years.

(iii) Special Increment Admissible For Family Planning Surgery. The payment of Special increment be restored.

(c) Justification.

Fifth Central Pay Commission vide Para 1.57.42 observed, “We feel that the present scheme of re-employment of officers whereby officers can be re-employed in a rank lower than that from which they retired. It is demeaning to the officer concerned”. However, due to limited vacancies available for select ranks i.e. Colonel and equivalent and

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above, it is not possible to re-employ officers in these ranks. If this is done the limited number of vacancies available for promotion of regular

officers will reduce. It will in turn adversely affect the already limited promotion prospect of officers. Re-employment of officers of the rank of Colonel and equivalent be re-employed in the rank in which they retire but not higher than Colonel (TS) and equivalent keeping the overall organisational interest in mind.

6.22. Enhancement of Retirement Age of Regimental Commissioned Officers (RCOs):-

(a) Existing Position. The present retirement age of RCOs is 52 yrs of age,or 12 yrs of service whichever is earlier.

(b) Proposal. It is proposed to increase the retirement age of RCOs fromthe existing 52 yrs of age, or 12 yrs of service to 54 yrs of age, or 14 yrs of service whichever is earlier.

(c) Justification. This is because the RCOs are granted Commission at theage of about 40 years and hence would be in a position to serve more time bringing them at par with Colonel / equivalents.

6.23. Revision of Retirement Ages of Territorial Army Officers.

(a) Existing Position . Presently, retirement for TA officers is governed as :-

(i) Lieutenant Colonel/Colonel - 56 years or 04 years of tenure whichever is earlier but not before 54 years

(ii) Brigadier - 58 years or 04 years of tenure whichever is earlier but not before 56 years

(b) Proposal. It is proposed that the four years tenure conditionality be dispensed with.(c) Justification. The above measure will increase the satisfaction level amongst the officer cadre in the Territorial Army Officers.

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SECTION – 4

ENTITLEMENT OF ACCOMMODATION : ARMED FORCES PERSONNEL

Introduction

6.24. Service conditions of Armed Forces Personnel demand that all personnel reside in cantonments close to their units. The entitlement of accommodation, therefore, forms a part of service conditions, which is not so in the case of other Central Government Services. Keeping in view the functional requirements of Units/Ships/Squadrons, the authorisation of married accommodation and other than married accommodation (OTM) has been decided. The authorisation of accommodation is shown in ‘Scales of Accommodation 1983’ which are primarily of 1937 origin. Minor modifications to the scales were carried out in 1983 and 1998.

6.25. The situation gets further aggravated as the government has not been able to provide accommodation even at the prevailing percentages. Hence it resulting in longer waiting periods, shorter stay with the family and frequent disruption in family life and children education. The shortage of married accommodation and absurdly low rates for reimbursement of house-rent/hiring of married accommodation (HRA/HRR/CILQ) are causing widespread discontent and de-motivation amongst the Armed Forces. This aspect needs immediate attention by the Sixth Pay Commission.

Accommodation : NCOs /JCOs & Equivalent

6.26. Free Ceiling for Electricity.

(a) Existing Position . PBOR were authorized free electricity as conditions of service. The ceiling was decided by local board of officers. The officers were authorized reimbursement of 50% of the All India Rates. Since 2005 this facility has been converted into free electricity for the first 100 units. (b) Proposal. It is now proposed that the first 350, 300 and 250 units be free to the Officers, JCOs and ORs respectively.

(c) Justification. Earlier the electronic gadgets in a house were very limited. Presently the number of electric gadgets have increased manifold and the normal consumption of electric consumption has gone up by two to three times. Hence an increase in ceiling limit as proposed would give some relief to the soldiers.

6.27. Re-imbursement of House Rent and Recovery of Rent in respect of Honorary Commissioned Officers.

(a) Existing Position . JCOs and their equivalent ranks granted honorary ranks / commission, are not entitled to rent free accommodation. Honorary Commissioned Officers residing in Government accommodation have to pay 5%

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of pay or assessed rent whichever is less and 2.5% of pay as furniture hire charges. Those, not provided with Government accommodation, are authorised re-imbursement of rent in excess of their rental liability subject to maximum of CILQ admissible to JCOs.

(b) Proposal. It is proposed that Honorary Commissioned Ranks / Officers continue to be governed as per the provisions of PBOR, resulting in rent-free accommodation.

(c) Justification. There is no change in status and position of JCOs granted honorary commission. The exemption of license fee and allied charges will simplify the unit accounting procedure and reduce undue financial burden on the few selected JCOs and equivalent.

Compensation In Lieu Of Quarters (CILQ)

6.28. The term CILQ is applicable only to personnel below officers’ rank. Personnel, who are not provided MES Government accommodation or station hired accommodation are entitled to CILQ provided they are within the Authorised Married Establishment (AME). CILQ is meant to compensate for hiring of house within the duty station or where his family resides.

(a) Existing Position. The existing authorised married establishment for the purpose of CILQ is as under:-

(i) JCOs & equivalent - 100%

(ii) Havs & Equivalent - 95%

(iii) Naik & Equivalent - 90%

(iv) Sep & Equivalent - 50%

(b) Anomalies. The anomalies existing:-

(i) AME for Sepoys to Havildars / equivalent in Air Force and Navy is less than 100%. As a result married personnel have to wait for 4-30 months to become eligible for grant of CILQ. During this period, in spite of free entitlement of accommodation, they have to bear the entire expenditure of hiring houses for themselves.

(ii) Different norms are adopted for classification of cities and for fixing the rates for hiring of accommodation and CILQ. The rates of CILQ and hiring are very low, these have not been revised on regular basis to keep pace with cost escalation.

(iii) Prior to the award of the Vth CPC, the rates of CILQ for NCs(E) were same as those for OR. The Vth CPC recommended lower rates for

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NCs(E). In fact the rates come out to be lower than even the HRA, if it was admissible to them.

(c) Proposals. The proposals are as under:-

(i) HRA as admissible to Central Government Employees be admissible to PBOR. The PBOR should have the option to draw HRA or CILQ whichever is more beneficial to him.

(ii) The AME in respect of all PBOR be increased to 100% for CILQ.

(iii) It is also proposed that adequate compensation for furniture, electricity and water charges be included in CILQ as these are the components of CILQ.

(iv) CILQ and hiring rates be revised annually by local Formation Commanders/local or nearest Competent Financial Authorities.

(v) The age for marriage be brought down from existing 25 to 21 years.

(v) Post retirement, DSC personnel join one rank lower. They are entitled to the scales of AME in the rank joined as DSC. This causes a lot of problem since at lower ranks the AME is low and hence the DSC personnel, despite having a family don’t get accommodation / CILQ. It is therefore proposed to revise the AME of DSC personnel to 100% irrespective of rank.

(vi) NCs(E) of the Air Force be authorized CILQ at the lowest rates as applicable to PBOR.

(d) Justification. The proposals will have the following advantages:-

(i) Due to Dearness Pay, the rates of HRA get revised whenever Dearness Pay changes. The rates of CILQ are slab rates and do not get revised between pay commission awards. As a result, the amount of CILQ, which initially is higher than HRA gradually, becomes lower.

(ii) Enhancement of AME to 100% will entitle all married personnel some form of compensation to tide over the shortage of Government accommodation.

(iii) Revision of rents by local formation Headquarters / Financial Authorities will speed up the process of revision. Rent being a state subject, it will be more appropriate to revise it on a station basis. This will result in decentralization and avoid red tapism and provide higher satisfaction levels.

(iv) The rates of CILQ for NCs(E) should be same as applicable to ORs at lowest rates. This will restore earlier relativities.

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Accommodation : Officers

6.29. Existing Position.

(a) Hiring of Accommodation. To make up for the deficiency of married accommodation, the accommodation can be hired on plinth area based on rental ceiling in force from time to time. The houses may be hired by Station HQ or by the officers themselves on re-imbursement basis subject to the following stipulations:-

(i) The accommodation should conform to the laid down plinth area entitlements.

(ii) The houses hired should be within the prescribed rental ceilings.

(b) Rental Ceilings. Based on the above parameters, the present scales of rental ceilings are very low. As a result, officers posted in Delhi stay as far away as Dwarka (22 Kms)/ Noida (18 Kms)/ Gurgaon(24 kms) and in Powai (20 Kms)/ Borivili (32Kms) / Chembur (18Kms) when posted to Mumbai. There too the HRA or HRR is inadequate to pay market rents.

(c) Re-imbursement of Rent and Allied Charges. All officers staying in accommodation hired by them are entitled to re-imbursement of difference between the rent and the license fee. It is for the prescribed plinth area and the hire charges for furniture less the flat rates are required to be paid by the officer. Re-imbursement of hiring charges for furniture is limited to twice the liability of the officer for the authorised scale of furniture.

6.30. Anomalies. The anomalies existing are:-

(a) Long Waiting Time. The waiting period for regular accommodation in metros and large cantonments ranges from 10 to 20 months. By the time as officer gets regular accommodation, more than half his tenure is over and he finds himself, again in the process of winding up. During this waiting time, the officer has to shift two to three times, which is an additional inconvenience and financial burden on him.

(b) Hiring of Accommodation.

(i) The existing rental ceiling is low and not commensurate with the prevalent market rates.

(ii) Revision of rental ceiling is not carried out from time to time to cope up with escalating rents.

(iii) Lengthy and cumbersome procedure of hiring married accommodation.

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(c) Re-imbursement of Furniture Rent. The rates of re-imbursement of furniture hiring are very low compared to the market rates and need immediate revision.

6.31. Proposals. The proposals are as under:-

(a) Improvement of Accommodation Availability. In order to reduce the waiting time, the existing deficiency of married accommodation be made up by hiring houses.

(b) Revision of Rents.

(i) The rates be revised on annual basis in order to keep them in line with market rents. The authority for such revision be vested in the local Formation Headquarters/Competent Financial Authority.

(ii) The consumer price index and inflation rates should serve as the guiding factors for fixation and subsequent revision of Rental Ceilings. The admissible amounts of HRA / HRR be revised automatically on conversion of DA to DP.

(c) In consonance with the law of the land, it is proposed to reduce the age limit for marriage from existing 25 years to 21 years.

6.32. Justification. The above proposals will improve the availability of hired houses and provide higher satisfaction level. The revision of rental ceilings by local Formation Commanders will make the system more responsive as these Commanders are answerable for the lower satisfaction level of married accommodation thereby bringing in accountability and user satisfaction.

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SECTION – 5

LEAVE ENTITLEMENTS

6.33. Existing Position.

(a) Accumulation and Encashment. Unavailed portion of annual leave subject to a maximum of 30 days in a year can be accumulated upto 300 days for encashment on retirement. The limit of encashment is further linked to the number of years of service which an individual has at the time of retirement.

(b) Furlough. 60 days of furlough leave in a cycle of three years is entitled to officers only. The unavailed portion of furlough leaves lapses. A civilian employee is entitled to 20 days half pay leave in a year, unavailed portion of which can be accumulated, commuted and encashed at the time of retirement.

(c) Maternity Leave. 2 months of maternity leave is admissible for first two pregnancies to the women officers.

(d) Sick Leave Officers. Sick leave comprises of hospital stay and sick leave. It is granted for a maximum periods of six months (inclusive of annual leave) at full rates of pay. It can be extended to 24 months but after the first six months the extended sick leave is on half pay.

6.34. Anomalies.

(a) Accumulation and Encashment. The quantum of encashment of accumulated leave is linked to the number of years of service. This linkage has no rationale. Due to shortage of officers and exigencies of service, curtailment/denial of leave has become the order of the day.

(b) Furlough. The provisions of accumulation, commutation and encashment applicable to half pay leave in civil services are not applicable to furlough leave in the defence services, which is discriminatory.

(c) Sick Leave. At present every case of prolonged hospitalisation/sick leave beyond a period of six months has to be forwarded to Ministry of Defence for obtaining waiver of the time limit. The procedure is delay oriented and puts the officers under undue financial burden.

6.35. Proposals.

(a) Accumulation and Encashment .

(i) Present ceiling of 300 days for encashment, therefore, needs to be enhanced at par with other Central Government employees.

(ii) The quantum of encashment should be delinked from the number of years of service and be identical to civilian employees.

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(b) Furlough. The provisions of accumulation, commutation and encashment applicable to Half Pay Leave should be extended to Furlough also.

(c) Sick Leave Officers. It is proposed to grant full pay to Officers during the entire period of sick leave irrespective of duration, provided the sickness / hospitalisation is attributable to/aggravated due to Service Conditions.

(d) Maternity Leave. It is proposed that Maternity leave for Lady Officers be enhanced from existing 60 days to 135 days, at par with All India Services Rules 1954 (Amended) during the confinement period for first two successful pregnancies.

6.36. Justification.

(a) Accumulation and Encashment.

(i) Enhancement of encashment limit will provide compensation against denial of leave due to exigencies of Service.

(ii) Encashment of the un-availed portion of leave on annual basis will serve as compensation to personnel foregoing their leave due to service exigency and as incentive to work.

(b) Furlough. Permission to accumulate, commute and encash unavailed portion of furlough will remove the existing discrimination between the civil services and defence personnel.

(c) Sick Leave Officers. The proposal if accepted will have no appreciable financial effect but provide dividends out of proportion as a morale booster.

(d) Maternity leave. Extending this period of leave would be a benevolent measure adopted by the government and would also bring the women officers in uniform at par with their counterparts in the civil services.

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SECTION – 6

CONDITIONS OF SERVICE : MISCELLANEOUS

House Building Advance

6.37. (a) Existing Position. The existing quantum of House Building Advance is as under :-

(i) Defence Personnel. 50 times of pay subject to max of Rs. 2.1 Lacs.

(ii) Civilians. 50 times of pay subject to maximum limit of Rs. 7.5 Lacs.

(b) Anomalies. The amount of HBA is too meager to enable a person to construct/purchase a house. In fact one cannot even purchase a covered parking space for this amount. In addition Defence Personnel are sanctioned HBA only to the extent of one third of that admissible to civilians, which is highly discriminatory.

(c) Proposals. It is proposed that:-

(i) The quantum of HBA be increased to 25 Lacs.

(ii) HBA should be sanctioned against second mortgage.

(iii) Adequate budgetary provisions be made to ensure availability of full amount on demand.

(iv) The HBA be progressively increased as market rates fluctuate.

(d) Justification.

(i) Due to increase in the cost of construction and a phenomenal increase in real estate prices, costs of even smaller dwelling units have increased astronomically. Even a two bedroom flat now costs above Rs. 20 lacs, be it through a State Development Authority, Cooperative Housing Society or Housing Boards run by the three Services. The present ceiling of Rs. 2.1 lacs thus has lost all meaning & utility.

(ii) In this connection, it is pertinent to note that the quantum of HBA of for Govt employees was fixed in the year 1996 at 7.5 lacs and was, at that time, commensurate with the prevalent cost of construction and price of

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land. It therefore, follows that increase in the HBA quantum was based on market prices, the repaying capacities of Servicemen and was not to be linked to the subject of Group Insurance which was not even conceived at that time.

(iii) The question is not one of parity with civilian Govt employees but that of a proven need based requirement and the Govt obligation to grant such a facility, which is available in every organistion, be it private or Govt, in India or abroad, civilian or military, quite liberally. Therefore seeking parity with the amount admissible to civilian Govt employees is only incidental. The main issue is the need to increase the amount of HBA substantially.

Conveyance Advance

6.38. (a) Existing Position.

(i) Motor Car. At present motor car advance is admissible to officers. Quantum of advance is a maximum of Rs. 1,80,000.00. The advance is provided at the rate of interest of 11.5% per annum.

(ii) Two wheeler. The quantum of scooter/motor cycle advance is a maximum of Rs. 30,000.00. The advance is provided at the rate of 11.5% interest per annum.

(b) Anomalies. The following anomalies exist:-

(i) The quantum of advances is inadequate to buy any vehicle from

the market.

(ii) High rates of interest.

(c) Proposals. It is proposed that the existing rates of Conveyance Advance be enhanced to :-

(i) Motor Car - Rs 5 Lakhs.

(ii) 2-Wheelers Rs 75,000.

(d) Rate of Interest. It is proposed that the interest on conveyance advance be charged at Savings Bank Rates.

(e) Justification. With the liberalization of Indian economy, the automobile industry has undergone revolutionary changes. A number of new cars and motorized two wheelers are coming into the market. Due to the rise in cost of

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cars and two wheelers, no car is available for less than Rs. 2.5 lakhs and 2-wheelers cost in the range of Rs. 40-75,000.00. In order to enable Service personnel to buy a conveyance as per their rank and status, it is essential to increase the quantum of advance to realistic levels. It is recommended that the advance be provided liberally on as low an interest rate as possible.

Income Tax

6.39. The role of the Armed Forces is unique. They are required to serve, and indeed bound by an oath to defend the sovereignty of the nation even at the peril of their lives. The Service Conditions demand frequent moves, prolonged separation from families, living and working in extreme and uncongenial climatic conditions. All Armed Forces personnel in the major part of their service career are required to maintain two establishments which brings an additional financial burden on them. For their peculiar conditions of service, Armed Forces personnel deserve special consideration for additional financial relief over those in private/civil Govt employment. The Govt has already identified certain allowances for exemption from the purview of Income Tax. There are allowances not exempt from Income Tax, though they are provided for specific compensatory purposes to Armed Forces personnel. In order to provide additional Income Tax relief, a few more allowances for serving personnel and incomes from all types of pensions for pensioners, should qualify for exemption.

6.40. Proposals

(a) Serving Personnel. It is proposed to exempt all such elements of pay and allowances which are special/peculiar to Services and are provided in the form of compensation. They should be in addition to those already exempt. Allowances proposed for exemption from Income Tax are:-

(i) Flying Allowance/Submarine Allowance/MARCOS Allowance/Diving Allowance/ Dip Money.(ii) FFJI/Para pay/PJI pay.(iii) Special Forces Allowance. (iv) Sea- going/Sea-duty Allowance (v) Hill Compensatory Allowance.(vi) Technical Pay/Qualification pay / Qualification Grant. (vii) Limit of band fund and mess subscription be enhanced from Rs. 250.00 p.a. to Rs. 6,000.00 p.a. The limit of Rs. 250.00 was laid down in 1921. (viii) Any other allowance including Dearness Allowance provided forspecific purpose from time to time and not included in the above list should automatically be exempt from Income Tax.

(b) Pensioners. It is proposed that all income which accrues to armed forces pensioners from any kind of pension should be fully exempt from Income Tax.

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6.41. Justification

(a) Special Position. Armed Forces personnel form part of classification under Central List No. 1 of the Constitution and thus enjoy a special position. The exemption of specific elements of pay based on this special position and peculiar conditions of Armed Forces personnel is not violative of Article 14 of the Constitution.

(b) Specific Nature of Allowances. Specific allowances/pay are provided to Service personnel as compensation for rigors of life, additional risk and responsibilities involved in performance of these duties both during peace and war. Subjecting these incomes to tax neutralizes the effect of compensation. Hence it will be justified to exempt these specific incomes from tax.

(c) Compensation for Peculiar Conditions. The exemption of Income Tax on specific elements of pay and allowances will provide some compensation against frequent moves and maintenance of two establishments most of the times.

(d) Band Fund. It is compulsory on the part of Armed Forces Officers to pay certain mandatory subscriptions to officer’s messes. The subscriptions generally range from Rs. 600.00 to Rs. 900.00 per month. Hence it will be justified to carry out upward revision of the limit of Rs. 250.00 per annum that was fixed in 1921 to Rs. 6,000.00 per annum.

Telephones

6.42. (a) Existing Position. As per Govt. of India, the facility of residential telephone is restricted to officers of the rank of Deputy Secretary and above. Below the rank of Deputy Secretary, residential telephones are restricted to 25% of Group ‘A’ officers. In the case of Armed Forces Officers, the same rule is applicable.

(b) Proposals. The following is proposed:-

(i) Residential telephone to be provided to all Commissioned officers.

(ii) STD/Internet/Broadband facility for office and residence to be extended to all under ‘One India’ plan.

(iii) The reimbursable component of the bill be governed as applicable to all central government employees.

(c) Justification. Officers in the Armed Forces play a vital role in administration and operational matters of their units and sub units. Residential telephones as asked for will relieve the Commanding Officer of mundane responsibilities during off duty hours and also enhance operational preparedness

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and administrative efficiency in the context of the 21st century’s need for instant communications.

Artificial Limbs / Prosthetics

6.43. Presently, cost of re-imbursement of Indian prosthetic devices that have ‘Exo-skeletal systems’ is admissible to the service personnel. These limbs have only cosmetic value and do not have any control or braking system. A lot of advancement has taken place since the times these limbs were made admissible for cost re-imbursement. The new variety of indigenous ‘Endo-skeletal’ limbs (made by TATA) has found greater use since they are more stable and flexible. The service personnel pays from his own resources to get this fitted.

6.44. Proposal. It is proposed that full cost of prosthetic devices that have ‘Endo-skeletal systems’ be also included in the purview of medical re-imbursement to the service personnel.

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CHAPTER VII

NON –EFFECTIVE BENEFITS

GENERAL

7.1. Ex-Servicemen are one of our most visible points of contact with the society. Their wellbeing, living standards, health concerns, success and failures are seen and analysed by the society. Most of the Ex-Servicemen, one encounters today, are a bitter lot. Memories of hardships and bloody encounters with the enemy are still fresh and so are the difficulties faced in surviving in his daily struggle with life. He fought and triumphed death, but it is life after retirement that is actually draining his will to survive. It is no surprise that today, soldiers who retire early die early.

7.2. For Non Effective Benefits to be meaningful it is essential that they are designed to address the shortcomings and provide a life of dignity to a retired soldier. He is our pride and it is no mean achievement that wherever he has been tasked, he has performed admirably. Indian soldier is looked upon as a saviour and a friend in all calamities, internal crisis situations and even in missions abroad.

7.3. This Chapter on Non-Effective Benefits is divided into the following sections:-

(a) Section- 1 Evolution of Present Pension System in the armed forces.

(b) Section - 2 Retiring Pension.

(c) Section - 3 Family Pensions.

(d) Section - 4 Disability Pension Awards.

(e) Section - 5 Death-cum-Retirement Gratuity and Ex-gratia Awards.

(f) Section - 6 Miscellaneous Issues.

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SECTION – 1

EVOLUTION OF PRESENT PENSION SYSTEM IN THE ARMED FORCES

Historical Background

7.4. Rational Scheme of Pension was introduced for officers in 1920 encompassing service element, rank, service in the Indian Army and minimum qualifying service of 18 years. Pension was extended to the Indian Commissioned Officers in 1935 on slab basis. This system continued till superseded by recommendations of Armed Forces Pension Review Committee (AFPRC). The range of pension that was applicable to defence forces was very wide with officers drawing pension at 100% for 2/Lt, 83.7% for Colonel and Lt Gen getting 31.8% of the last pay drawn as against civilian pension ranging from 50 % at it maximum to 22.2% minimum.

7.5. AFPRC formulated some guidelines in structuring an equitable pension formula for the Armed Forces. Consequently, on acceptance of these and after a series of discussions between the Armed Forces and the Government, new pension structure was introduced. This reduced the pension range to 78.5 % for a 2nd Lieutenant, 45% for colonel and 32.7% for Lieutenant Generals. Standard length of service to earn pension in each rank was also suggested from 20 years for a 2/Lt, 26 years for a Colonel to 30 years for a Lieutenant General AFPRC also recommended deduction of pension in the event of shortfall in standard years of service, the same was accepted by the government and implemented along with other recommendations from 01Jun 1953.

Existing Shortcomings

7.6. Undeniably, every pay commission has resulted in forward march towards a more balanced pension structure, but there are large gaps that need to be filled and issues addressed to the satisfaction of large number of pensioners. The inadequacies in the present system and the recommendations are considered in each section separately. Long term objective should be to provide ready social acceptability to ex-servicemen on their return to civil life. Principles for formulating a comprehensive compensation package must address financial security, social equity and eradicate disparities which are harming the interests of Defence Service Personnel due to early retirement.

Broad Principles for Proposed Pension Structure

7.7. Keeping the above factors in mind, the following broad principles that shoulddetermine the formulation of an equitable pension structure are postulated: -

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(a) Principle of Social Equity. A person is looked upon in society based on employment, rank and earning capacity. Hence protection of existing living standard needs to be ensured.

(b) Simplification of Procedures. There is a need for simplification of procedures while working out parity in pension, family pension and disability pension. Simple procedures will ensure minimum anomalies.

(c) Parity in Pension – Past and Future Pensioners. There is a need to achieve Parity in pension in case of past and present officer pensioners. Reaching parity in pension for PBOR has been a major milestone.

(d) Retirement Benefits Must Compensate for Truncated Career. Retired defence service personnel should be compensated adequately.

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SECTION - 2

RETIRING PENSION

“When you go home remind them of us,who gave our today for their tomorrow”

Introduction

7.8. Basis for deciding pension must take into account needs of the employees and legitimate aspirations are built into the model arrived at. Principles of justice and equity must remain the guiding factors. Pension must ensure that an individual lives with dignity, independently, with self respect and without attracting further burden. It must ensure that he meets the liabilities he was unable to settle while in service. V CPC has acknowledged that “Pension is a statutory, inalienable, legally enforceable right”.

Existing Provisions

7.9. Historically pension of service personnel has been biggest casualty of various pay commissions. Though there has been universal recognition of peculiarities of service and uniqueness of retirement conditions, but little has been done to offset the disadvantages. The existing system of pension for the Defence Services is a derivative of a scheme tailored for civilian employees of the central government.

7.10. Officers. Pension rules, as applicable to officers, are as under:-

(a) The retiring pension is fixed on the average of reckonable emoluments drawn by the individual during last 10 months of service.

(b) The minimum qualifying period of service is 20 years.

(c) Weightage ranging from 3 to 9 years is applicable to officers to compensate for truncated career and early retirement.

7.11. Personnel Below Officer Rank (PBOR). Though the rules for calculation of pension for PBOR are similar to that of officers, the governing conditions are different. Salient features are as under:-

(a) Reckonable emoluments are equal to top of the pay scale including 50% of the highest classification pay, if any, of the rank held and the group in which paid continuously for at least 10 months at the time of discharge.

(b) The minimum qualifying service for pension is 15 years.

(c) Weightage ranging from 5 to 10 years is applicable to compensate for reduced tenures.

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Inadequacies of the Existing System

7.12. Undeniably, attempts have been made in recent years to address the inadequacies; a retiree is virtually at mercy of the system. His pension is inadequate, his responsibilities are burgeoning, the aspirations and the growing consumerism are taking a toll on his physical and mental ability to survive in the world. The fact that a soldier who retires healthier than his civil contemporaries dies earlier are testimony to the fact that survival in the new environment for him is another battle. Important issues that need to be considered are:-

(a) Burgeoning Responsibilities. Defence service personnel find themselves out of job when the responsibilities are large and mushrooming. It is ironical that when he needs higher income, he is compulsorily retired and given a fraction of what he otherwise earned. Most of our PBOR come from villages and small towns, where by the age of 40 years he has a family and aged parents. Health of his aged parents starts deteriorating. The Climacteric Obligation Time Line Chart given below clearly highlights the growing responsibilities from age of 40 to 54 years. This incidentally is the time when he has lower income to look after his obligations. The soldier therefore needs a package in keeping with the directions of the Hon’ble Supreme Court that he must live with a standard equivalent to his pre-retirement level, free from wants with decency, independence and self respect5.

CLIMACTERIC OBLIGATION TIME LINE

5 DS Nakra and other Vs Union of India (AIR 1983, SC 130). Quoted at Para 127.3, Page 1755, Compiliation of V Central Pay Commission Report, Nabhi Publications, Reprint May 1999.

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TIME IN YRSR 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 100ES F FATHERP M MOTHERO S SELFN W WIFES C1 SONI C2 DAUGHTERBI C1 SONL C2 DAUGHTERIT 10 YRSI 15 YRSES SON

DAUGHTER

F FATHERM MOTHERS SELFW WIFE

SOCIETY RELIGIOUS /

MIN BASIC SOCIAL INTERACTION

MOUTHS TO FEED

HOUSE/LOAN

EDN

MARRAIGE

HLTH

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(b) Weightage Factor. Present system of weightage doesn’t guarantee 50% of pension to PBOR, since maximum of 30 years are considered for calculation of pension. His pension falls by 5% to 45%. Whereas a civilian who serves longer, resolves his family and social responsibilities while still in service and earns 50% of his last pay drawn as pension.

(c) Lateral Placement. Vth CPC had, in their general recommendations, acknowledged that pension of a defence service personnel was meagre and said “ his pension is not expected to be his sole means of income and he can reasonably be expected to find a second employment”6. This promise was carried further and all his dues were curtailed. The second employment to compensate for early retirement can be effective only when it is guaranteed by an act of law.

Proposals

7.13. Proposals related to pension are aimed at removing the anomalies in the system and to ensure that Defence Service Personnel being compulsorily retired are given income that enables them to live with dignity and honour.

7.14. Calculation of Pension Full pension should be authorised to Defence Service Personnel on completion of 33 years of qualifying service (including weightage). The scales of full pension be given as under: -

(a) Officers 50% of top of the scale of the rank in which retired.

(b) PBOR 75% of the top of the scale in which retired.

(c) Calculation factor Formula for calculation is recommended to be retained. However it is recommended that, in order to arrive at the percentage proposed above, multiplication factor as given below be applied: -

Category Percentage of Pay as Pension

Basic Formula (BF)

Multiplication Factor for BF

(i) Officers 50%

RE x (QS + WT) 33

1/2

(ii) PBOR(aa) Up to 55

years75% 3/4

(ab) More than 55 years

50% 1/2

6 V CPC report para 161.12 page 2031 , Part VIII, Vol III, Compilation of V Central pay Commission Report, Nabhi Publications, Reprint May 1999.

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(d) Where:-

(i) RE = Reckonable emoluments in Rupees(ii) QS = Qualifying Service in years(iii) WT = Weightage in years

7.15. Increase in Weightage. Present years of weightage fall short of promise, further, OR have a ceiling of 30 years of qualifying service with weightage, both combined result in an OR getting only 45% of his reckonable emoluments as his pension. The proposals to remove this infirmity are: -

(a) Officers No change is recommended if the retirement age of 60 years is retained. In the event of enhancing the retirement age, weightage be enhanced by same number of years as enhancement of retiring age.

(b) PBOR Weightage presently being given to PBOR needs to be enhanced, to ensure that every PBOR gets full benefit of 33 years on retirement. Proposed weightage scales are: -

Ser No

Rank and equivalent in other services

Present Weightage

Proposed

(i) Sepoy 10 14(ii) Naik 8 11(iii) Havildar 6 9(iv) Naib Subedar 5 8(v) Subedar 5 8(v) Subedar Major 5 8

7.16. Reckonable Emoluments . Proposed reckonable emoluments for calculationof pension are as given:-

(a) Officers Sum of Basic Pay at the top of the scale with rank pay merged, military service pay, NPA and stagnation pay wherever applicable of the rank retired in.

(b) PBOR Basic Pay at the top of the scale, military service pay, classification pay and stagnation pay wherever applicable of the rank retired in.

7.17. One Rank One Pension. Over the years there has been demand and deliberation for bridging of gap between the pension of the old and current retirees. To ensure that disparities in pension do not appear at a later stage, it is proposed that new set of pension rules are applied concurrently to old and fresh pensioners at the time of implementation of VIth Central Pay Commission award. To implement One Rank One Pension following is recommended:-

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(a) Officer One rank one pension for officers be implemented and officers be given the pension at the top of the scale of the rank he retires in.

(b) PBOR. Near parity has been achieved.

7.18. Pensionable Service for Ex Servicemen Employed in Defence Service Corps (DSC) Qualifying Service for ex-servicemen employed in DSC for earning pension should be reduced from 15 years to 10 years.

7.19. Pension for Reserve Liability Period for Retired Personnel Defence Service personnel on reserve liability are recommended to be paid allowance at the rate of 10% of basic pension as Reserve Liability Allowance.

7.20. Commutation of Pension. Rate of commutation of pension be enhanced to 50% and period for restoration of full pension be reduced from 15 to 12 years.

Justification of the Proposals

7.21. It is an established fact that an individual who has completed his entire service and who superannuates at or more than 60 years of age needs at least 67%7 of his last pay drawn to sustain similar lifestyle. This is when an individual has taken care of his social commitments. A soldier on the contrary has his social obligations growing as his income dwindles. Though this issue has always been accepted by previous pay commissions, they have some how fallen short in finding a comprehensive solution and have been found wanting in dispensing justice to the soldier.

7.22. Serviceman retires early and the pension plan for him must ensure the guidelines of dignity and near parity in his standard of living while he was in service. It is therefore proposed that the pension to an ex serviceman should be given to him based on his established needs and should not be bound by existing limits of 50%. Any pension lower than 75% would deprive him of respect and dignity.

7.23. Fifth Central Pay Commission too had resorted to some double speak, when it came to providing the soldier a decent pension. While it acknowledged that 67% of last pay drawn is essential for maintaining the desired standard, for a person who superannuates at 60 years. It gave a mechanism that provided only 36% of last pay drawn as pension for a service personnel retiring while still shy of 40 years and his family responsibilities staring at him.

7.24. A comparison of incomes available to two persons of same qualifications, age and probably similar social background, one in the Defence Services and other in a civil government job, highlights the disparity that starts at the age of 40 years and follows the soldier to his grave. A soldier has an income of Rs. 8910/- per month just prior to his retirement that is equal to others. All through his retired life he faces an ever widening gap in income in relation to his civilian friends. The income for a soldier is his pension, a low paying second job in private capacity and some interest generated on 7 Study conducted by TECS for V CPC and given at para 127.9 of page 1756 vol III of Compilation of Fifth Central Pay Commission Report, Nabhi Publication,.

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his securities. The gap is wide and expanding all through in his retired lsife. This wide disparity needs to be reduced.

7.25. Reckonable Emoluments Important changes recommended in the proposals are: -

(a) Basic Pay at Top of the Scale. On proposed merger of rank pay with basic pay being accepted, rank pay would cease to figure separately as a component of reckonable emoluments. With a view to achieve parity in pension for all ranks it is highly desirable that pension for officers too should be calculated on basis similar to PBOR i.e. on top of the scale. It is therefore essential that for reckonable emoluments, pay at the top of the scale should be taken for officers also. Having different criterion for veterans and current retirees for calculating pension will lead to creation of various groups and subgroups, which is not desirable as it would lead to friction and attrition in the otherwise closely knit service community. This issue is connected to a long pending demand of Ex-Servicemen for achieving One Rank One Pension.

(b) Classificaion Pay. Classification Pay now re-termed as Classification Allowance for PBOR needs to form part of reckonable emoluments. Classification Allowance in not similar to qualification or other related allowances, but is an essential part of a PBOR’s employment policy. At any time PBOR at various classification levels are available for duty. It is a requirement that every soldier has to go through and is essential for his performing his duties effectively.

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400060008000

10000120001400016000180002000022000240002600028000

75% 50% Gp Y LDC LDC1

10522

9580

25473

19437

SOLDIER POST RETIREMENT

LDC WITH PROMOTIONS

LDC W/O PROMOTIONS

SOLDIER AT 50%

SOLDIER AT 75%

8910

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(c) Reckonable Emoluments. Military Service pay proposed as part of pay package for service personnel has long lasting effect on physiological, psychological and sociological well being of a soldier. Those, who go through the rigorous of military service and survive, continue to live with the effects of those deprivations and hardships. The effects of military service manifest as short life span, continued sense of insecurity, problems of adjustment in civil life to name a few. Inclusion of military service pay as part of reckonable emoluments is essential for dispensing justice.

7.26. Pensionable Service for Ex-servicemen in Defence Service Corps (DSC). For ex-servicemen serving in DSC pensionable service is 15 years as against 10 years if they take up appointment in other government services. This is similar to the facility available to civilian govt employees who take up second employment and thereby become eligible for second pension after serving for 10 years in the new appointment.

7.27. Reserve Liability Allowance A soldier on retirement when placed on reserve liability needs to maintain good health to be fit for any recall. Today he is not being compensated for the liability, he has to look after his needs and stay fit out of the meagre pension.

7.28. One Rank One Pension Failure to implement One Rank One Pension for retired Defence Services Personnel by successive governments, after promises and inclusion in election manifestos for over two decades, is the epitome of disregard for the welfare of the retired soldier. It is no hidden fact that Defence Services function on rank structure from which flow the authority, position, status, decision making ability and responsibility. Service personnel grow in a culture of ranks, for him his position and status has always been the rank that he holds. A higher rank in the defence services ensured him higher perquisites, two officers in the same rank with same length of service draw same pay. Thus it is legitimate that the same should continue even after retirement and two pensioners in the same rank should be given same pension. The demand for one rank one pension must be accepted on the same rationale. Over the years there has been demand and deliberation for bridging of the gap between the pension of the old and current retirees.

7.29. Commutation of Pension. The need for increasing the limit of commutation to 50% has risen due to drop in interest rates and the income this commuted amount is able to generate. Interest rates on secure government deposits like National Saving Schemes and National Saving Certificates has fallen. It is clear from the exhibit below, that where an individual could double the money in 6 years at the time of last pay commission, today in the same time period he gets only 60% of the amount as interest. Demand for higher commutation value and early restoration was also raised by various organisations while submitting memorandum to V th Central Pay Commission. The pay commission in its report agreed with reducing the period of restoration to 12 years,8 and recommended to the government accordingly.

8 V CPC report para136.10 page 1843 , Part VI Vol III, Compilation of V Central pay Commission Report, Nabhi Publications “It would be reasonable to restore the commuted pension after 12 years instead of 15 years as at present. We recommend accordingly”.

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Anomalies related to Pension

7.30. Disparity in Pension Between Regimental Commissioned and Honorary Commissioned Officers. Pension of Regimental Commissioned Officer (RCO) is lower than that of Honorary Commissioned Officer. The terms and conditions of RCOs restrict their service to 12 Years of service or 52 years of age which ever is earlier. They then become eligible for drawing the pension of the rank they have retired and draw pension on the last pay drawn. JCOs bestowed Honorary Commission for meritorious service get to serve for about a year in the honorary rank, their pay is given on a fixed scale which entitles them pension on that scale.

(a) Anomaly. RCOs start progressing in the pay scale of officers and in certain cases retire much earlier than 10 years and at pay scales lower than that of honorary captains, who may have joined at the same time, done same length of service or may have been junior to the RCO for many years. This results in RCOs getting pensions lower than honorary officers, which amounts to an individual being given promotion in status but lower pension. There is a need to protect the pension of RCOs against the pension of Honorary Commissioned Officers.

(b) Proposal It is proposed that a RCO should get pension equal to his pension or service pension of an Honorary Officer of the same rank whichever is higher.

(c) Justification PBOR are granted commission as RCOs and serve till 52 yrs of age. They may serve longer than Sub/ Sub Maj granted honorary ranks, however they are given lower pension in certain cases. Two recruits joining at the same time but retiring differently as RC and honorary commission officers will draw different pensions. In a number of cases the RCOs ends up

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EARNING NSC VI

0

200

400

600

800

1000

1200

YEAR

AM

OU

NT

MATURITY

FIFTH YEAR

FOURTH YEARTHIRD YEAR

SECOND YEAR

FIRST YEAR

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getting a lower pension than their subordinates with equal length of service who have been granted Honorary Commission.

7.31. Higher Pension to Honorary Naib Subedar. Honorary ranks are given to few select PBOR prior to retirement, for long meritorious service. Honorary rank also entitles the individual with pension of the rank bestowed.

(a) Anomaly While Naik on getting the rank of Honorary Havildar earns pension one rupee less than that of a substantive Havildar. JCOs on becoming Honorary Officers have their pay fixed on a fixed scale. Their pensions are then computed at the time of retirement, as per existing formula. A Havildar, on being bestowed an honorary rank of Naib Subedar, is given an additional pension of Rs 100/-,(Rupees one hundred) only. Critical examination reveals that while a Naik gains close to 8.38% on his pension and a JCO gains up to 28.06%. An Honorary Naib Subedars gain is a meagre 4.25% of his pension. Deciding the quantum of honorary pension for various ranks was apparently arrived at without thought and analysis. This has led to vast discontentment amongst Honorary Naib Subedars.

(b) Proposal It is proposed that pension for a Havildar bestowed the rank of Honorary Naib Subedar should be based on a system similar to that of JCOs given honorary rank of an officer i.e. based on a fixed scale. It is also intended to provide a benefit of Rs. 500/- (Rupees Five hundred only) at present scales to an Hon Naib Subedar. This amount be given similar multiple rise as PBOR pay.

(c) Justification Havildars granted honorary rank of Naib Subedars need to be compensated adequately in comparison with other honorary ranks.

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SECTION – 3

FAMILY PENSION

Introduction

7.32. The family pension is admissible to the family or dependants of a Serviceman in the event of his death whilst in service or after retirement. The award of family pension is entirely governed by the circumstances of the death of the individual. At present there are different types of family pensions, corresponding broadly to one of the five attributability criterion from Category A to E.

Existing Position

7.33. Ordinary Family Pension Admissible in cases of death due to causes neither attributable to nor aggravated by military service (NANA). This condition is covered under Category A. It is calculated at 30% of last pay drawn at the time of death of the individual. For first seven years it is granted at an enhanced rate of 50% of last pay drawn. Enhanced rate of ordinary family pension cannot exceed service pension or notional service pension of the deceased.

Drawbacks in the Existing Rule Position

7.34. There is a need to assure him that his family and loved ones will be taken care of should a soldier die prematurely.

7.35. Low Rate of Family Pension 30% of last pay drawn as family pension is too meagre under circumstances where an individual dies young. It becomes difficult for the family to look after itself and survive. The responsibilities that the widow faces only increase with time but the increase in pension does not keep pace with it.

7.36. Short Duration of Enhanced Rate of Ordinary Family Pension Ordinary family pension is admissible at enhanced rate for a duration of 7 years after death of the individual or 67 years of age which ever is earlier. This condition has been imposed keeping in mind the service conditions as obtaining for civilians in office working environment. These have then been applied to defence service personnel who work under conditions where deaths under both attributable and not attributable conditions take place frequently.

7.37. Stipulation for Enhanced Rate of Family Pension not to Exceed Service Pension The origin of stipulation that enhanced rate of family pension cannot exceed service pension may have been benign, but today it is causing tremendous heartburn and livelihood threatening difficulties to families of deceased soldiers. There are cases where a family when granted enhanced rate actually draws pension less than the ordinary pension.

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Proposals

7.38. Rate of ordinary family pension needs to be increased from present rate of 30% of last drawn pay to 40% at the top of the scale of the rank in which the husband died.

7.39. Duration of admissibility of enhanced rate of ordinary family pension should be extended from present 7 years to 15 years.

7.40. Stipulation specifying that enhanced rate of ordinary family pension should not exceed service pension or notional service pension should be removed.

7.41. Families of persons drawing two pension should be authorised to draw two family pensions on death of the pensioner.

7.42. Un-married daughters of pensioners be authorised family pension for life if she has no income of her own.

7.43. Families of those dying during trials of indigenous developed weapon systems and ammunition be authorised liberalised family pension.

Justification

7.44. Enhance Rate of Ordinary Family Pension from Existing 30% to 40% of Last Pay Drawn. Incidences of death in the defence forces are higher and large numbers of them occur during early part of life. The family is thus left to fend for itself and look for resources to make both ends meet. Likely hood of a young widow devoid of income going astray while looking to augment her family income cannot be ruled out. 30% of last pay drawn as family pension is inadequate, it would also be grossly unfair to assume that household expenditure is 30% and the individual spends 70% of the pay drawn on him. The income available in the hands of a widow needs to be increased. 40% of the top of the scale proposed should continue till 60 years of age, the accepted age of superannuation of the government servant. Family pension may thereafter reduce to 30%.

7.45. Increased Duration of Enhanced Rate of Family Pension from 7 to 15 Years Demand for increasing the duration of enhanced rate of Family Pension from 7 to 15 years was made by civil organisations to V Central Pay Commission. The pay commission felt otherwise and said “The period of seven years for entitlement of family pension at enhanced rate is considered to be adequate period for a family to get adjusted to the changed circumstances9”. The seven year limit may be suitable for civil servant who has different norms ruling his life and death and dies at a much older age. It is clear from the Obligation Climacteric Time Line given at paragraph 7.16, that the responsibilities continue to remain till 55 years of age for PBOR and 60 years for officers. The families of soldier or ex-servicemen who die short of 45 years of age survive to face the brunt, for their family compulsions demand a higher income for a

9 Para 134.16, page 1822, Part IV, Compilation of V CPC Report, Nabhi Publication

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longer duration. The demand for enhancing the period for payment of enhanced rate of family pension to 15 years for Service Personnel is justified.

7.46. Removal of Stipulation Limiting Enhanced Rate of Ordinary Family Pension to Retiring Pension Presently enhanced rate of family pension is limited to service pension. On death of young servicemen their families end up getting enhanced rate of family pension at a rate lesser than ordinary family pension. This stipulation needs to be removed. Families of Sepoys with less than 9 ½ , Naiks with less than 11 ½ years and Havildars with less than 13 ½ years of service draw enhanced rate of family pension less than ordinary rate. The notional service pension for all the above cases works out to be less than 30%. Their enhanced rate of pensions are then limited to their notional service pensions. This stipulation is against the spirit of family pension and thus needs to be dropped.

7.47. Authorisation of Ordinary Family Pension to Widows on Remarriage Ordinary family pension of a widow ceases on her remarriage. This issue was raised with Vth Central Pay Commission and they recommended continuation of ordinary family pension to her on re-marriage, if she decides to look after the children. “We are unable to agree to the suggestion for continuance of family pension to the widow on remarriage. However if the widow undertakes to maintain the dependant children on her remarriage, family pension should be continued”10. Family pension however continues even after remarriage for widows drawing special or liberalised family pension. Pension in most of the cases would act as one of the major reasons for acceptance of a widow for re-marriage. Discontinuation of same after re-marriage may actually prove detrimental to harmony in her married life. There is thus a need to authorise ordinary family pension to widow on remarriage, If she abandons her children, entire family pension should pass on to all the children collectively.

7.48. Authorisation of Ordinary Family Pension to Unmarried Daughters for Life Presently widowed daughters are authorised ordinary family pension for life, where as unmarried daughters are allowed ordinary family pension till the age of 25 years only. This is a case of wrong interpretation. A widowed daughter is allowed family pension because she is equated to an unmarried daughter who has no means to sustain herself. An unmarried daughter when wholly dependant on her father too needs to be treated alike. Both widowed and unmarried daughters have same conditions and difficulties and deserve same treatment.

7.49. Trial of Indigenous Ammunition Families of those dying during trials of indigenously developed weapon systems and ammunition need to be authorised liberalised family pension. This condition needs to be included in Cat E along with those of death and disability during live demonstration and exercises. It needs to be appreciated that when a person conducts the trial, he fires a weapon that has not been tested. Its efficacy and safety is not known, it is only an idea converted into a working model. The risk to life is far more than any of the other conditions listed in category D.

10 Para 134.23 page 1824, Part IV Compilation of V CPC report, Vol III, Nabhi Publication.

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SECTION - 4

DISABILITY PENSION AND AWARDS

Introduction

7.50. As in the case of the Family Pension, the disability awards to the servicemen are also governed by the attributability or non-attributability clauses.

Proposals

7.51. Slab System to be Replaced by Percentage System. Presently slab system is applicable for the defence personnel whereas civilian employees are paid disability at 30% of last pay drawn. It is proposed that disability component of disability pension be paid on percentage basis at 30% of basic pay subject to a minimum of Rs.1,550/- per month at present rates. The lower limit i.e. Rs.1,550/- per month be given the same multiple as the pay rise to retain parity.

7.52. Disability Due to Injury in War and Similar Situations. Rates double of those applicable for disability under normal conditions, i.e. 60% of last pay drawn subject to a minimum of Rs. 3100/- per month at present rates should be made applicable for disabilities.

7.53. Qualifying Service for Invalid Pension Should be Removed for Neither Attributable Nor Aggravated by Service Conditions (NANA). Invalid pension has a service qualifying limit of 10 years for persons who have disabilities that are NANA by military service conditions, i.e. persons who are invalided before completing 10 years of service are not eligible for invalid pension. This stipulation needs to be removed. Invalid pension should be authorised from very first day of service.

7.54. Constant Attendant Allowance. The rates of Constant Attendant Allowance are extremely low (i.e Rs. 600/- per month) and it is not possible to engage a constant attendant at the existing rates. Therefore, the constant attendant allowance needs to be raised to the minimum wage applicable to one Group D employee of Central Government.

7.55. Bar of Voluntary Retirement for Grant of Disability Pension. Bar on payment of disability pension to those, initially retained in service but seek to proceed on voluntary retirement should be removed.

7.56. Removal of Lower Limit of 20% for Disabilities. Presently lower limit of 20% is applied for admissibility for disability component of family pension. All disabilities below 20% whether attributable or not are not authorised disability pension. Compensation on Disability for less that 20% should be allowed. It is proposed that Disability component be paid to disabilities below 20% for all attributable cases on pro-rata basis. All disabilities between 1 to 10% be paid for 10% disability.

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Justification

7.57. Removal of Limits for Disability Pension. A person who sustains a disability for whatever reason and has his career prematurely terminated on that account, suffers not only from physical effects of his disability but also from the emotional trauma of having been discarded from service and having to start all over again in life. It is contradictory that Government grants Ordinary Family Pension to an individual’s family if he dies in an accident even after one day’s service, but they deny the same benefit to him and his family, if instead of dying, he becomes a lifelong cripple and at times worse than a dead person, he is denied the privilege. The condition is unjust and against spirit of natural justice.

7.58. Bar of Voluntary Retirement for Grant of Disability Pension. According to Regulation 50, PRA Part I(1961), if an officer seeks retirement voluntarily, he is not eligible for disability pensionary benefits. This is an archaic rule out of tune with the realities. It will benefit both the individual and the organisation if personnel with disabilities are allowed to proceed on premature retirement with a disability factor.

7.59. Percentage System for Disability Component. Present method of drawing disability on slab system was beneficial to young PBOR. Simple resorting to percentage system would be detrimental to our PBOR, for they would not be adequately compensated for their sacrifices. Ends of justice can only be ensured if disability component is made applicable to Defence Service Personnel at 30% of pay, as applicable to civil employees while protecting Rs.1550/- PM being paid to the soldiers at present rates. Any increase in pay should be offset by corresponding increase in lower limit of Rs.1550/-.

7.60. Disability for War Injury. For injury during war and similar situations disability is paid at double the rates applicable to disability under normal conditions. In the present instant too, percentage rates double of those proposed for normal pension are justified and will maintain the Status Quo.

7.61. Limit for Disability. Psychological and physical effects of disability last a lifetime. The trauma of being disabled in an era where fitness be it physical, mental or emotional are keys to success is immense. Persons with minor disabilities find it difficult to be accepted. The justification of imposing a lower limit of disability does not exist. If the disability is attributable then it calls for compensation. In the present times where minor crimes and failures are not pardoned how do we justify withholding compensation for a disability we call minor? There is a need to remove the lower limit and disability of percentages lower than 20% should be compensated in proportion to the extent of disability.

7.62. Constant Attendant Allowance. Grant of Rs. 600/- to hire an attendant to look after a disabled person is devoid of any sound reasoning. On one hand there are regulations to ensure that minimum wages are paid to a person and in the same breath a disabled person is expected to hire an attendant at ridiculously low remuneration. A disabled soldier will pay out of his meagre pension or else he would live his entire life at the mercy of others. There is an urgent need to make this allowance respectable and place at the hands of our disabled soldiers enough means to hire an attendant with respect and live with dignity.

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SECTION - 5

DEATH-CUM-RETIREMENT GRATUITY AND EX-GRATIA

Death Cum Retirement Gratuity

7.63 The scheme was introduced for civilians with effect from 01 Apr 50 as a welfare measure to provide economic security. It was also to enable Government servants to meet their social and family commitments at the time of retirement. The DCRG was made applicable to Armed Forces with effect from 10 Sep 70.

7.64. Proposals .

(a) There should be no ceiling on the length of service or amount to be paid as gratuity.

(b) The weightages of PBOR may be increased to as proposed for pensions.

7.65. Justification.

(a) DCRG was introduced to enable individuals to meet social and family commitments at the time of their retirement. At present, the maximum amount allowed does not meet this aim due to erosion in value of rupee and high cost of living. The rates for Death Gratuity is required to be increased and the ceiling on gratuity removed to provide much needed relief to the retired personnel and families of the deceased employees. The changes in Death and Retirement gratuity have been proposed to enable Defence Service Personnel to meet at least some of the family and social commitments which are at the peak at the time of retirement.

(b) Weightage is granted after five years service as a compensation for early retirement and liability to recall. Existing weightage of five years does not compensate adequately for these factors especially in respect of PBOR. The weightage for PBOR, therefore, needs to be increased and made realistic to provide necessary compensation for their very early retirement ages (37 to 40 years). A soldier retiring after 19 years of service gets only 12 months of pay as Gratuity as against 16½ months by a civil employee retiring after 33 years of service. He needs to be compensated for early and compulsory retirement. Enhancement of weightage to 14 years will ensure that all ex-servicemen get 16½ months of pay as gratuity. This will bring in equity and justice in the system.

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Enhancement of Ex- Gratia Being Paid for Various Attributability Conditions

7.66. Proposal. It is proposed that Ex-Gratia being paid should be enhanced as given below:-

(a) Rs 10 Lacs Deaths due to reasons either attributable or aggravated by military service while in harness.

(b) Rs 25 lacs Deaths due to accidents, acts of violence of terrorist/anti social elements and related categories.

(c) Rs. 35 lacs Deaths due to enemy action in international war, border skirmishes and all related categories.

(d) Rs. 40 Lacs Deaths occurred during various operations on notification by Govt.

7.67. Justification. Ex-gratia is paid to the families of deceased for services rendered and acknowledgement of harsh conditions of service and death. The amount of ex-gratia too, like other benefits needs to keep abreast with the needs of the families. Though it is acknowledged that monetary compensation cannot lessen the pain but it can make going through the pain a little easier. The familes that are deprived of the bread winner should not be forced to look for means to survive. The families would need to cover the requirements of dwelling units, expenditure on paying some debts that the husband may have incurred. It is our organisational responsibility to ensure respectable life to the families of the deceased.

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SECTION - 6

MISCELLANEOUS NON EFFECTIVE BENEFITS

Counting of Full Former Service for Pre 1.1.1986 Retirees

7.68. As per prevalent rules pre-commission service of all PBOR is considered in full for computing pension and other retiring benefits. This concession is not available to pre 1.1.1986 pensioners.

7.69. Counting of Pre-Commissioned Military Service. Pre commissioned service may count towards qualifying service for pension as under:-

(a) Service rendered as Non-Regular commissioned officer shall be counted in full.

(b) One half of the qualifying service will be counted when rendered as JCO immediately followed by commissioned service. With effect from 1.7.66, pre commissioned service rendered in the ranks below that of JCO will count to the extent of two thirds instead of half for pension.

(c) But with effect from 1.1.1986, all pre-commissioned service rendered in the Armed forces shall be counted in full for working out the qualifying service for earning pensionary benefits subject to fulfillment of other conditions.

7.70. Proposal. It is proposed that concession regarding counting of service rendered in the ranks prior to grant of Commission available to retirees from 1.1.86 onwards be extended to pre 1.1.86 retirees as well.

7.71. Justification. There is a need to bring parity in counting of former service of PBOR of pre and post 1.1.86 for calculation of pension. Parity between pre and post 1.1.96 retirees has been achieved after implementation of V th Central Pay Commission report11. Recommendations with regards to achieving parity in pension were made and accepted but the issue of providing parity for counting of former service should also be accepted on grounds of justice and fair play.

11 Para 165.8(ii), Recommendations for PBOR, Page 2050, Part VIII, Compilation of V Central Pay Commission Report Nabhi Publications

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Casualty Pensionary Awards : Cadets at Defence Service Academies and Training Institutes

7.72. Existing. Presently rules as applicable to cadets disabled or who dies while in training are as under:-

(a) Disability. Disability awards on ex gratia basis of Rs. 2100/- PM for 100% disability, for lesser disabilities the amount is reduced pro-rata.

(b) Constant Attendant Allowance. Constant attendant allowance of Rs. 600/- PM for cases of 100% disability where recommended by medical authorities.

(c) Rules for assessment of disabilities are same as applicable to commissioned officers. Dearness relief is admissible on ex gratia awards.

(d) Death. In the event of death dependants are authorised Ex gratia award of Rs. 1275/- PM, (now enhanced to Rs. 1912.50 PM) to wife and children and to parents in case of unmarried cadets. In case of no parents ex-gratia award is admissible to brother(s)/unmarried sister(s) up to the age of 25 years.

(e) Ex-gratia amount of Rs 2.5 Lacs is paid in addition for cases attributable to or aggravated by service conditions.

7.73. Proposal

(a) Disability awards be granted on same basis as commissioned officer with service component equal to minimum service pension as decided.

(b) The ex-gratia award to be increased to Rs 15 lacs and made applicable in respect of all cadets killed during training.

7.74. Justification When, such a career is cut short by disability or death at a tender age, the effects are life long for the cadet and painful for the parents. The rates do not provide any succour to the affected cadets or her/his parents whom the deceased / disabled cadet was to support in their old age. All this contributes to adverse publicity for the Armed Forces and discourages parents of talented youth to send their wards to join the Armed Forces. Therefore, a suitable compensation which is essential to meet at least the basic needs of the disabled cadet, of his family or parents is recommended.

Facilities of Senior Citizens be Extended to all Ex-Servicemen

7.75. Existing Position. Various ministries have extended facilities to senior citizens. The status of Senior Citizen is conferred to a person who has attained the age of 60 years.

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7.76. Proposal Facilities of senior citizens be extended to all ex-servicemen irrespective of age of retirement.

7.77. Justification Facility is available to senior citizens on attaining an age of 60 years. This facility is extended because a senior citizen suffers drop in income and has to maintain himself, same condition befalls an ex-serviceman much earlier in life. Therefore same facilities should be extended to him.

Medical Allowance

7.78. Existing Position All existing Defence Forces pensioner/family pensioner with effect from 1.12.97 are entitled for payment of fixed medical allowance of Rs. 100/- pm in lieu of out door patient if he/she is residing in an area where no Military Hospital/ M.I. room facilities exist.

7.79. Proposal It is proposed to enhance medical allowance to Rs. 500/- per month for ex-servicemen fulfilling above conditions.

7.80. Justification Ex servicemen have failing health that needs to be taken care of on regular basis. Rs. 100/- per month is too meagre an amount for any worthwhile medical help. Higher cost of medicine and health workers has to be borne by the ex serviceman.

Severance Grant

7.81. Proposal It is proposed that officers who complete pensionable service be encouraged to seek other avenues. To this end it is proposed that officer who seek voluntary retirement after completing pensionable service be paid a lump sum amount equal to a maximum of 60 months worth of last drawn salary in addition to the pension earned. The proposed severance package would be calculated on current monthly pay (Basic pay + Rank Pay + Dearness Pay if any + DA) multiplied by number of months left for retirement subject to a maximum of 60 months.

7.82. Justification The steep pyramid in the army and limited promotional avenues available to an officer stagnate the individual and stunts departmental growth. There is a need to promote Voluntary Severance of Service (VSS) for Defence Service Officers. To make it viable, it is essential that severance scheme is made attractive. It is important that officers of the rank of Colonels and above are encouraged to seek voluntary retirement thereby creating more select vacancies and generating upward mobility. This is bound to have positive impact on army as a career and will change the image of defence services as an employment.

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Lump Sum Payment be Made to Short Service Commissioned officers on Completion of Terms of Engagement

7.83. Existing Position Benefits available to Short Service Commissioned officers at the time of termination of service are limited to terminal gratuity. He serves for 14 years and does not qualify for pension. Terminal gratuity is authorised at the scale of half months pay for every six months of service.

7.84. Proposal Lump sum amount equal to capitalised value of notional pension be paid to Short service Commissioned officers as service termination compensatory package.

7.85. Details of the proposal Notional pension is required to be worked out based on the pension rules as will be applicable to all defence service employees. The capitalised value of notional pension is then required to be worked out based on purchase value of the notional pension. Capitalised value will be paid to short Service commissioned officers on termination of service. Purchase value as decided by the government for commutation of pension would be used for computing the lump sum amount. Weightage of 5 years should be given to Short Service Commissioned officers who complete their ten years or more. This benefit be given only on completion of terms of engagement and not to officers seeking release earlier than 10 years. Officers invalided out on medical grounds or disability before completing 10 years should also be given the benefit of 10 years of service for computation of lump sum amount.

7.86. Justification There is a need to make Short Service Commission attractive and a viable first career for youth of the country. The terminal benefits today are out of sync with the financial requirements of the youth and their aspirations need to be factored in the terminal benefit plan.

Removal of 5% Depression in Pension of TA Personnel

7.87. Existing Positions Qualifying service for pension for TA personnel is 15 years, however if the service is less than 20 years a depression of 5% is applied to the pension earned.

7.88. Proposal The depression in pension for qualifying service between 15 and 20 years be removed and complete earned pension be admissible to TA personnel.

7.89. Justification Pension is earned after qualifying conditions are fulfilled, 5% depression is unique to Territorial Army personnel only. This would tantamount to penalising them and cutting their pension which has rightfully been earned. TA personnel are also governed by same conditions and guidelines as applicable to all others while calculating the pension. They are being employed in all types of terrain and in counter insurgency. Reducing their pension would create a lower category of personnel and implications class system, this needs to be done away with.

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Appendix 'A'{Refer to Para of 3.6 (e)}

MERGED/OBSOLETE/DUPLICATE TRADES: ARMY

Ser No

Merged Trade No. of Trades Merged

Arm/Service

Trades Merged

1. Clk (SD) 3 APS/ Common/ ASC

Clk Postal, Clk GD & Clk GD(SD)

2. Clk (IM) 3 Engr/AOC Clk Store, Clk(S) Cont & Clk(S) Prov3. SKT 2 Common/

EngrSKT & SK Gde II

4. Regt Svy 4 Arty/Eng Svy Arty, Regtl Svy, Svy Fd and Dtmn Fd

5. Chef 4 Common/ AMC

CK Spl, Ck (U), Ck Mess and Ck Hosp

6. Draughtsman 3 Engr/Sig/ Common

Dtmn Litho, Dmn Sigs and Dtmn Mech

7. Artisan(Wood Work)

4 Common/ Engr

Carp & Jointer, Carp Unit, Saw Doctor and Sawyer

8. Artisan (Metallurgy

4 Common/ Engr

Blacksmith Unit, Tinsmith(U), Tin & Coppersmith and Metal Smith

9. Painter & Decorator

2 Common Painter (U) and Painter & Decorator

10. Support Staff (ER)

4 Common/ AOC/EME

ER, Saddler Unit, Upholster and Textile Repairer

11. Machinist 2 Common/ EME/Engr

Machinist and Turner

12. Op Radio 4 Common/AC/Arty/Engr

Op Radio Arty, Op Radio AFV, Op Radio Wireless and OP Radio AFV (ICV)

13. Gnr 3 Common/Engr/AC/Arty/Mech

Gnr GD, Gnr AFV and Pilot Gnr.

14. Dvr Fighting Veh

3 -do- Dvr AFV (APC), Dvr AFV and Dvr AFV (ICV)

15. Dvr Spl Veh 3 Common/ Engr

Op AM-50, Dvr Spl Veh and DPMT

16. Geo Info Technologist

2 Engr Air Svy Draughtsman and Svy Trigo

17. OEM 2 -do- Artificer and Op Excavating Machinery.

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18. Photo Carto 2 Engr Photo Writer and Photo Carto19. Eng Artificer 2 -do- Eng Artificer & Eng Fitter20. Printer Carto 5 Engr Litho Prover, Litho M/C Minder, G&G

Op, Lino Mono Op and Helio Worker.21. Svy Topo 3 -do- Sy Topo, Dtmn Topo and Sapper Svy.22. Sailor 3 -do- Secunny, Shipwright and Lighterman23. Artisan

(Constr)3 -do- Mason, Concreter and Bricklayer

24. Tech Telecom 2 Sig TER and TES.

25. OCC 3 -do- OCC, Op Radio & Key Board and Op Radio & Line.

26. Lineman 3 -do- Lineman Fd, Lineman PL & Line Test Recorder

27. Sowar Rider/GD

3 AC Sowar PBG, Sowar Horsed Cav and Sowar GD.

28. Limb Maker 2 EME Limb Maker Leather & Fabric and Limb Maker Metal & Wood.

29. Postal Op 2 APS Postman and Packer.

OBSOLETE TRADES

01. Tracer02. Oilman03. Driver Mule

Arty04. Tool Maker05. Pattern Maker06. Op Tyre Repair

Plant07. Moulder08. Operator

Laundry09. Baker10. Butcher

DUPLICATE TRADES

01 Op Radio AFV02. Gunner AFV03. Operator Fire

Control04 OEM

Appendix 'B'

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{Refer to Para of 3.6 (e)}

MERGED/OBSOLETE TRADES: NAVY

Ser No

Merged Trade No. of Trades Merged

Trades Merged

01. ERA/MECH 2 ERA/MECH (Submarine) & ERA MECH02. EAP/MECH (P) 2 EAP/MECH(P) & EAP/MECH (P)

(Submarine)03. EAR/MECH (R) 2 EAR/MECH® & EAR/MECH (R)

(Submarine)04. Seaman (UC) 2 Seaman (UC) & Seaman (UC) (Submarine)05. Seaman (UC) 2 Seaman (UC) & Seaman (UW)

(Submarine)06. Seaman (RP) 2 Seaman (RP) & Seaman (RP) (Submarine)07. EMP 2 EMP & EMP (Submarine)08. EMR 2 EMR & EMR (Submarine)09. RO (Tel) 2 RO (Tel) & RO (Tel Submarine)10. RO (TAC) 2 RO (TAC) & RO (TAC) (Submarine)11. RO (Spl) 2 RO (Spl) & RO (Spl) (Submarine)

OBSOLETE TRADES

01 Charioteer

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Appendix 'C'{Refer to Para of 3.6 (e)}

MERGED/OBSOLETE TRADES : AIR FORCE

Ser No

Merged Trade No. of Trades Merged

Trades Merged

01. Inst Fit + 03 Inst Fir, Photo and Photo Tech02. Wpn Fit + 02 Wpn Fit and SEW03. Ws Fit (B) + 02 Ws Fit (B) and Ws Fit (C)04. Ws Fit (M) 03 Ws Fit (M), Mach and Carp Rig05. MT Fit 02 MT Fit and MT Tech06. Com Op 02 Rdo Tech and Telst RTO07. DAFSO 02 AFSO and ADSO

OBSOLETE TRADE

08. Carpenter

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Appendix ‘D’(Refer to para 3.7 & 3.9)

RECOMMENDED TRADES AND THEIR PAY GROUPS : ARMY

COMBTANTS IN GROUP ‘X’

Ser No

Arms/Services

Trade Ser No

Arms/Services

Trade

1. Arty/AD AIG 2. Arty/AD TIFC3. Engr Litho M/C Erector 4. Engr D Man E&D5. Engr Geo info

Technoligist (New Trade after merging Air Svy and Svy Trigo)

6. Engr Serang

7. Engr Mechanist E&M 8. Engr Overseer E&M9. Engr Overseer B&R 10. Engr Svy Auto Carto11. Sigs OP Spl Sig 12. Sigs Yeoman of Sigs

(JCOs only)13. Sigs Foreman of Sigs

(JCO only)14. ASC Catering JCO

15. ASC Personal Asst 16. RVC Breeding Overseer17. RVC Line Overseer 18. AMC Radiographer (JCO

Only)19. AMC Lab Tech (JCO

only)20. ADC Dental Hygienist

21. AOC Amn Tech 22. EME Avn Ftr Air Frame23. EME Avn Ftr Armament 24. EME Avn Ftr Inst & photo25. EME Avn Ftr Electrical 26. EME Avn Aero Engine27. EME Avn Ftr Avionics 28. EME HMT (All trades)29. AEC Instr AEC Spl 30. Int Translator foreign

Language (JCO only)

31. Int Transcriber Chinese Language

32. Common Religious Teacher

33. AEC Instr AEC

COMBATANTS IN GROUP ‘Y’ AND ELIGIBLE FOR UPGRADATION TO GROUP ‘X’

1 Common Clk (SD) 2 Common Clk inventory Management

3 Common Skt (All cat) 4 Common Regimental Surveyor

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5 Common OEM 6 Common Refrigeration Mech7 Common Op Radio 8 Common Radio Op9 Common Gnr 10 Common Dvr Fighting veh11 Common Dvr MT 12 Common Dvr Spl Veh13 Engr Electrician 14 Engr Engine Artificer15 Engr Surveyor Topo 16 Engr Photo carto17 Engr Printer Carto 18 Engr Dvr Marine19 Sigs TER 20 Sigs Op Cipher21 Sigs OCC 22 Sigs Electrical Fitter of

Sigs23 Arty Tech Asst 24 Avn Met Asst25 Avn AFSO 26 Inf Inf Sol GD27 AMC Lab Asst 28 AMC Blood Transfusion

Asst29 AMC Pharmacist 30 AMC Nursing Tech31 AMC Physio Therapy

Asst32 AMC X- Ray Asst

33 AMC Health Asst 34 ADC Dental Tech35 AMC Spl Treatment Asst 36 AMC Operation Room

Asst37 ADC Dental Operating

Room Asst38 AMC Psychiatric Nursing

Asst 39 AMC Nursing Asst 40 EME Telecom Mech (All

Cat)41 EME Veh Mech AFV 42 EME Instrument Mech43 EME Engr Eqpt Mech 44 EME Electrician AFV45 EME Veh Mech MV 46 EME Rec Mech47 EME Armourer 48 EME Electrician MV49 EME Fitter AFV, AD,

Armt & FIELD50 RVC Dresser

51 RVC Lab Attendant 52 Common Bandsmen incl piper, Bugler, Drummer & Musician

53 Common Chef 54 Common Draughtsman55 Common Steward (Mess) 56 Sigs Dispatch Rider57 Sigs Lineman 58 CMP Mil Police59 Int Int Personnel 60 APTC PTI

‘Y’ GROUP1 Common Welder 2 Common Machinist3 Common Artisan (Metallurgy) 4 Common Artisan (Woodwork)5 Common SHT 6 Common Painter & Decorator7 Engr Printer &

Compositor 8 Common Tailor Unit

9 Engr Dvr Rlys 10 Engr Plumber11 Armd Sowar Rider/GD 12 Engr Sailor

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13 AMC Amb Asst 14 Engr Artisan (Construction)

15 AOC Saddler & Harness Maker

16 DSC Security Gd

17 RVC Army Dog Trainer 18 EME Limb Maker19 ASC Petroleum Mech 20 RVC Rider21 APS Postal OP 22 RVC Farrier23 ASC Animal & Store

Handler

COMBATANT IN GROUP ‘Z’

1 Common SHGD 2 Common Sp Staff (W)3 Common Sp Staff (S) 4 Common Sp Staff (M)5 Common Sp Staff (B) 6 Common Sp Staff (ER)7 Pnr Pnr GD 8 RVC Kennel man

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Appendix ‘E’(Refer to para 3.7 & 3.9)

RECOMMENDED TRADES AND THEIR PAY GROUPS : NAVY

Ser No

Trade Expanded Form Ser No

Trade Expanded Form

COMBATANTS IN GROUP ‘X’

1. SWA Shipwright Artificer 2. ERA/Mech Engine Room Artificer/Mechanician

3. AA/AM Air Artificer/ Mechanician

4. AA (W) Air Artificer/ Mechanician(Weapons)

5. EAP/MECH (P)

Electrical Artificer/ Mechanician (Power)

6. EAR/MECH (R)

Electrical Artificer/ Mechanician (Radio/Radar)

7. EAA/ MECH (AR)

Electrical Air Artificer/ Mechanician (Air Radio/ Radar)

8. EAA/MECH (AL)

Electrical Air Artificer/ Mechanician (Air Electrical)

COMBATANTS IN GROUP ‘Y’ AND ELIGIBLE FORUPGRADATION TO GROUP ‘X’

1 NAM Naval Air Mechanic 2 NAOM Naval Ordnance Mechanic

3 EMA Air Electrical Mechanic (Power)

4 EMAR Air Electrical Mechanic (Radio Radar)

5 MET Meteorological Observer

6 SE Safety Equipment

7 PH Photographer 8 AH Air Craft Handler9 MARCOS Marine Commandos 10 SEA (RP) Seaman Radar

Plotter11 SEA (UC) Seaman (Under

Water Control)12 SEA (UW) Seaman (Under

Water Weapon)13 SEA (RC) Seaman (Radar

Controller)14 SEA (QA) Seaman (Quarter

Armourer)15 SEA (SR) Seaman Survey

Recorder16 SEA (CD) Seaman Clearance

Diver17 SEA (PT) Seaman Physical

Trainer18 REG Regulating

19 RO (TEL) Radio Operator (Telegraphist)

20 RO (TAC) Radio Operator (Tactical)

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21 RO (Spl) Radio Operator (Special)

22 ME Engineering Mechanic

23 EMP Electrical Mechanic (Power)

24 EMR Electrical Mechanic (Radio/Radar)

25 WTR Writer 26 SA Store Assistant27 MA Medical Assistant 28 ACD Air Crew Diver29 STD Steward 30 CK (O) Cook (Officers)31 CK (S) Cook (Sailor) 32 MUS Musicians (Band

Master & Orchestra/ Leaders/Band Master)

COMBATANTS IN GROUP ‘Z’ AND ELIGIBLE FOR UPGRADATION TO GROUP ‘Y’

01. TOP Topass

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Appendix ‘F’(Refer to para 3.7 & 3.9)

RECOMMENDED TRADES AND THEIR PAY GROUPS : AIR FORCE

Ser No

Trade Expanded Form Ser No

Trade Expanded Form

COMBATANTS IN GROUP ‘X’1. AF Fit Air Frame Fitter 2. Eng Fit Engin Fitter3. Elect Fit Electrical Fitter 4. Inst Fit Electrical Fitter5. Rdo Fit Radio Fitter 6. Rad Fit Radar Fit7. Wpn Fit Weapon Fitter 8. MT Fit Machanical Transport

Fitter9. Msl Fit (M) Missile Fitter

(Mechanical)10. Msl Fit (L) Missile Fitter

(Electronics)11. Msl Fit (E) Missile Fitter

(Electrical)12. WS Fit (B) Workshop Fitter

(Blacksmith)13. WS Fit (M) Workshop Fitter

(Machines)14. PMF (M) Plant Maintenance

Fitter (Mechanical)15. PMF (E) Plant Maintenance

Fitter (Electrical)16. Edn Instr Education Instructor

17. Comp Fitter Computer Operator 18. Flt Engr Flight Engineer19. Flt Gr Flight Gunner 20. Flt Sig Fligh Signaller21. IAF/G Indian Air

Forcye/Garud22. SVO Specialist Vehicle

Operator23. Clk Accts Clerk Accounts 24. Musician

(OL/BM)Musician (Orchestra Leaders/Band Master)

25. Crypto CryptographerCOMBATANTS IN GROUP ‘Y’ AND ELIGIBLE FOR

UPGRADATION TO GROUP ‘X’1. DAFSO Defence and Air Field

Safety Operator2 Met Asst Meteorological

Assistant3. Clk GD Clk General Duty 4. GTI Ground Training

Instructor5. Cat Asst Catering Assistant 6. Comn

OperatorCommunication Operator

7. Eqpt Asst Equipment Assistant 8. Med Asst Medical Assistant

COMBATANTS IN GROUP ‘Y’ 1 Clk EA Clerk Equipment

Accounting2 Clk PA Clerk Pay Accounting

3 IAF/P Indian Air Force/Police 4 IAF/S Indian Air Force/Security

5 A/GD Administration and General Duties

6 Musn Musician

7 GTI(S) Ground Training Instructor (Sports)

8 MTD Mechanical Transport Driver

9 PJI Para Jumping Instructor

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Appendix 'G' (Refer to Para of 3.10)

EXISTING PAY SCALES - W.E.F 10 OCT 1997

ARMY_________________________________________________________________Rank Group ‘X’ Group ‘Y’ Group ‘Z’ _________________________________________________________________Sepoy 3600-70-4650 3250-70-4300 3050-55-3875 Naik 3700-85-4975 3425-85-4700 3150-70-4200Hav 4150-100-5650 3600-100-5100 3250-85-4525Nb Sub 5770-140-8290 5620-140-8140 5200-125-7450Sub 6750-190-9790 6600-170-9320 6170-155-8650Sub Maj 7250-200-10050 6750-200-9550 6600-200-9400- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --------------------------

NAVY_________________________________________________________________Rank Group ‘X’ Rank Group ‘Y’ Group ‘Z’ _________________________________________________________________App 3200-60-3260 Seaman-II3325-60-3445 3050-55-3215Art V 4150-70-4360 Seaman-I 3650-60-4550 3080-60-3980Art IV 4550-100-6350 Ldg 3900-70-4950 3200-70-4250Art III-I 5120-100-7120 PO 4320-85-5595 3775-85-5050Chief Art 6000-125-8250 CPO 5620-140-8140 5200-125-7450MCPO II 6750-190-9790 MCPO-II 6600-170-9320 6170-155-8650MCPO I 7400-200-10200 MCPO-I 6750-200-9550 6600-200-9400- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - ----------- - - - - - ------

AIR FORCE__________________________________________________________________Rank Group ‘X’ Group ‘Y’ Group ‘Z’ _________________________________________________________________AC 3675 3250 3050LAC 4025-60-4925 3650-60-4550 3080-60-3980CPL 4150-70-5200 3900-70-4950 3200-70-4250SGT 5000-100-6500 4320-85-5595 3775-85-5050JWO 5770-140-8290 5620-140-8140 5200-125-7450WO 6750-190-9790 6600-170-9320 6170-155-8650MWO 7400-200-10200 6750-200-9550 6600-200-9400- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --------------------------------------

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GLOSSARY OF TERMS

S. No Abbreviation Full Forms

1. AA/AM Air Artificer/Air Mechanician2. AC Aircraftsman / Air Conditioned3. ACC Army Cadet Corps4. ACP Assured Career Progression 5. ADC Army Dental Corps or Aide-de-Camp6. ADC Army Dental Corps7. AEC Army Education Corps8. AFGIS Air Force Group Insurance Fund/Scheme9. AFI Air Force Instructions10. AFLU Air Force Liaison Unit 11. AFSO Air Field Safety Officer12. AFV Air Frame Vehicle13. AGIF Army Group Insurance Fund14. AI Army Instructions15. AIG Artillery Instruction Gun16. Allce Allowance17. AMC Army Medical Corps18. AME Authorised Married Establishment19. AOC Army Ordinance Corps20. APP Apprentice 21. APS Army Postal service22. APTC Army Physical Training College23. ART Artificer24. ASC Army Service Corps25. AVSC Ajay Vikram Singh Committee Report26. BCA Bhutan Compensatory Allowance27. BQMH Battalion Quartermaster Havildar Major28. BRIG Brigadier29. CAGR Cumulative Aggregate30. CAPT Captain31. CCA City Compensatory Allowance32. CDR Commander33. CEA Child Education Allowance34. CFA Competent Financial Authority35. CGHS Central Government Health Scheme / Services36. CHIEF ART Chief Artificer37. CI Counter Insurgency38. CILQ Compensation In Lieu of Quarters39. CMDE Commodore40. CO Commanding Officer41. COSC Chiefs of Staff Committee

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42. CPC Central Pay Commission43. CPI Consumer Price Index44. CPL Corporal45. CPMA Composite Personal Maintenance Allowance46. CPO Chief Petty Officer47. CQMH Company Quartermaster Havildar Major48. CRSD Circadian Rhythm Sleep Disorders49. CSD Canteen Stores Department50. CV Concession Voucher51. DE Direct Entry 52. DGAFMS Director General Armed Forces Medical Services53. DGMS Director General Medical Services54. DIPR Defence Institute of Psychological Research55. DP Dearness Pay56. DSC Defence Service Corps57. E&M Electric and Mechanism58. EEZ Exclusive Economic Zone59. EME Electric Mechanical Engineer60. EMP Electrical Mechanician Power61. EMR Electrical Mechanician Radio62. Eng Engineers63. ER Equipment Repair64. ERA Engine Room Artificer65. FRW Free Railway Warrant66. GCB Good Conduct Badge67. GEN General68. GHQ General Health Questionnaire69. HAFA Highly Active Field Area70. HAV Havildar71. HON Honorary 72. Hon Lt Honorary Lieutenant73. IB International Boundary74. ICO Indian Commissioned Officer75. IES Impact of Events Scale76. IMTRAT Indian Military Training Team77. Inst Fit Instrument Fitter78. Int Intelligence79. JAG Judge Advocate General80. JCO Junior Commissioned Officer81. JWO Junior Warrant Officer82. KCIO Kings Commissioned Indian Officer83. KMA Kit Maintenance Allowance84. LAC Leading Aircraftsman / Line of Actual Control85. LoC Line of Control86. LDG Leading87. LMC Low Medical Category88. Lt Lieutenant89. MAJ Major

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90. MARCOS Marine Commandos91. MAST Michigan Alcoholism Screening Test92. MCPO Master Chief Petty Officer 93. MECH Mechanician94. MMG Medium Machine Gun95. MSM Meritorious Service Medal96. MSP Military Service Pay97. MT Fit Mechanical Transport Fitter 98. MWO Master Warrant Officer99. NB SUB Naib Subedar

100. NC(E) Non-Combatant Enrolled101. NCO Non-Commissioned Officer102. NCs Non Combatants103. NGIF Naval Group Insurance Fund104. NI Navy Instructions105. NK Naik106. NMER Non Matric Entry Recruitment107. NPA Non-Practicing Allowance108. NPC New Pay Code109. OC Officer Commanding110. OEM Operator Excavation Machinery 111. Oi/C Officer In Charge112. Op Radio Operator Radio113. Ops Operations114. OR Other Ranks115. OTA Officers Training Academy116. OTK Outfit and Kit Allowance117. PBOR Personnel Below Officer Rank118. PJI Para Jump Instructor119. PO Petty Officer120. PSO Principal Staff Officer121. Regt Svy Regiment Surveyor122. RO Radio Operator123. RQMH Regimental Quartermaster Havildar Major124. RR Rashtriya Rifles125. RVC Remounting Veterinary Corps126. SD Staff Duties127. SEA I Seaman I128. Sect Sector129. SEP Sepoy130. SEW Special Electronic Warfare131. SF Special Forces132. SGT Sargent133. SH GD Store Hand and General Duty134. SHT Store Hand Technical135. SIA Special Incentive Allowance136. SIG Signal137. SKT Store Keeper (Technical )

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138. Sqn Squadron139. STNA Specially Trained Nursing Assistants140. SUB Subedar141. SWA Shipwright Artificer142. TA Territorial Army143. Tech Asst Technical Assistant144. TR Travel Regulations145. TS Time Scale146. UAV Unmanned Aerial Vehicle147. WF Weapon Fitter148. WO Warrant Officer149. Ws Fit Workshop Fitter150. WSES Women Special Entry Scheme

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