Model Pay Fixation of Reemployed Exservicemen in Central Govt Services : 2025 Update

The pay fixation of reemployed Exservicemen since 31 July 1986 has proved to be full of disparity and discrimination. The matter has been brought to the notice of the DOP&T and MoD in the last decade. An uniform pay fixation methodology has also been drafted in the year 2018 but not finalised due to lack of burocratic decision making. Latest position of the issue as released by the AIREXSA is reproduced in this article. Before this, an illustration of pay Fixation of reemployed ESM as per the proposal is described here.

Pay Fixation latest news is available in this website now. According to the provisions contained in Ministry of Defence O.M. No.2(1)/83D(Civ.I) dated 08.02.1983 and Dept of Rxpdr, MoF O.M. No.F.4(3)-E.I(B)/82 dated 13.12.1983 and present proposal of DOP&T, Model Pay Fixation of a reemployed ESM is likely to be as below :-

Illustration of Proposed Pay Fixation Methodology

Model Pay Fixation of Reemployed Exservicemen in Central Govt Services is described here.

Name of the ESM – Hav (Class-I) ABX (Retd)
Service length – 20 Yers
Promoted to Hav – After 10 years of service. So total years served in Level 5 and above is – 10 years
Pre retirement Pay – Basic pay – Rs 44100/-
Class pay – Rs 675/-
MSP – not to be included (as per proposal of DOP&T)
(No other pay is applicable for Gp Y Hav of Army)
Total Pre Retirement Pay – 50,175/-

Mr ABX Reemployed through SSC in the Audit and Accouts Dept in the post of Auditor in 10 March 2017. Initial pay of the Auditor post is in level 5 – Rs 29,200/-

Pay fixation process – Since preretirment pay is higher than initial pay of Reemployed Post, pay to be fixed by allowing one additional increment for each year served in the post not lower than Level 5 in the Army. ( Here increment for the post of Auditor – Level -5 will be allowed for 10 years only as Hav ABX served in the rank of Hav for 10 yeears only)

Pay of Level -5 after 10 Years of service as per 7th CPC pay Matrix arrived at – Rs 38,100/-

So Pay of Hav ABX (Retd) will be fixed in Auditor post as on 10 March 2017 @ Rs 38100/-. In addition he will be entitled to draw DA and all other allowances in his reemployed post. All kind of pension with DR and pensionary benefits also be entitled.

Proposal for Pay Fixation of Reemployed ESM

“A Meeting was held on 10th February 2025 with the Secretary of DOE & the Dy Secy of DOPT. Representatives from AIREXSA, viz Shri Sanjay Tiwari, Shri Sanjay Kumar and Shri Dobriyalji attended the meeting on the invitation by the DOE. This meeting was held to impress upon DOE to speed up the concurrence of the latest DOPT proposal. The contents of the proposal sent by DOPT is as under :

(a) Contents of Paras 4 (b) (i) and 4(b)(ii) of the O.M. dated 31.07.1986 (1986 Orders) may be replaced with, “In cases where it was felt that the fixation of initial pay of re-employed individuals at the minimum of the prescribed pay would cause undue hardship, the pay be fixed at a higher stage by allowing one increment for each year of service which the individual had rendered before retirement in a post not lower than that in which he has been re-employed. In addition, the Government servant is permitted to draw separately any pension sanctioned to him and to retain any other form of retirement benefit for which he is eligible provided that the total amount of initial pay plus the gross pension does not exceed the pay drawn before his retirement or the prescribed limit from time to time.

(b) Additionally, in the case of PBORs, the methodology shall be, “If the initial pay in the re-employed post is lesser than the Pre-Retirement Pay (PRP), then it would constitute undue hardship and, in their case, the pay be fixed at a higher stage by allowing one increment for each year of service which the individual had rendered before retirement in a post not lower than in which he has been re-employed. In addition, the Government Servant is permitted to draw separately any pension sanctioned to him and to retain any other form of retirement benefit for which he is eligible provided that the total amount of initial pay does not exceed the pay drawn before his retirement or the prescribed limit from time to time.” This methodology would conform to the provisions contained in M/o Defence O.M. No.2(1)/83D(Civ.I) dated 08.02.1983 and D/o Expenditure’s O.M. No.F.4(3)-E.I(B)/82 dated 13.12.1983.

(c) The definition of Pre-Retirement Pay (PRP) as defined in Rule 3(2) (ix) of the OM dated 31.7.1986 may be amended to include all the elements of the pre-retirement pay drawn by the ex-servicemen at the time of retirement/discharge from the Armed Forces and that which constitute the pension, excluding the Military Service Pay, and this PRP shall be taken while notionally fixing the pay from his date of joining the re-employed post. Kindly note that the above proposal was initially recommended by DESW, MOD after a meeting of AIREXSA representatives with the concerned Secy. The same proposal was forwarded by AIREXSA to DOPT at the time of framing the new policy in the year 2018, but unfortunately didn’t find favour with DOPT. Now, in the current proposal, DOPT has specifically mentioned the name of AIREXSA and they have recommended the above proposal in their draft proposal. This clearly indicates the acceptance of AIREXSA as a major stakeholder of ex-servicemen. Shri Sanjay Tiwari and his team have had very long discussions with the concerned at DOPT and DOE and have tried to convince them to give financial concurrence. AIREXSA is hopeful of a fruitful outcome this time. All the members are requested to kindly extend their valuable support to AIREXSA. Jai Hind.”

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