Since 1986, re-employed Ex-Servicemen belonging to the PBOR (Personnel Below Officer Rank) category, who are engaged in Central Civil Services, have been systematically deprived of pay fixation benefits based on their past military service. This long-standing disparity has been repeatedly highlighted and represented by various Service Headquarters and Ex-Servicemen Associations over the years.
After sustained pressure, the Department of Personnel & Training (DoP&T) finally acknowledged that the existing pay fixation policy is discriminatory and needs to be revised. Accordingly, in 2019, DoP&T prepared a draft proposal to introduce a uniform pay fixation methodology for all re-employed pensioners, including PBORs, and forwarded the same to the Department of Expenditure (DoE), Ministry of Finance, for financial approval.
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However, the file has faced multiple rounds of objections and returns from the Department of Expenditure. Most recently, the proposal was resubmitted in December 2024. Unfortunately, the latest remarks and objections raised by DoE, as per their note dated 26 June 2025, have once again dashed the hopes of thousands of re-employed ex-servicemen.
In this article, we will explore the key points raised by the Department of Expenditure, the reasons for withholding approval, and the implications for the affected ESM community.
Date: 26 June 2025
Source: Ministry of Finance, Department of Expenditure, E.III.A Branch
Topic: Pay Fixation of Re-employed Pensioners (Ex-Servicemen)
In a significant development impacting thousands of re-employed ex-servicemen working in various central government departments, the Ministry of Finance (Department of Expenditure) has once again returned the file concerning the Revision/Consolidation of CCS (Fixation of Pay of Re-employed Pensioners) Orders, 1986, citing a range of ambiguities and financial concerns in the proposal submitted by the Department of Personnel and Training (DoP&T).
The proposal, based on persistent demands from the All India Re-employed Ex-Servicemen Association (AIREX), aims to rationalize and equalize the pay fixation benefits between commissioned officers and Personnel Below Officer Rank (PBORs), as well as Group B and C civilian employees. However, the Finance Ministry has flagged multiple issues in DoP&T’s proposal, highlighting the need for further clarity, financial assessment, and policy justification.
🔍 Background of the Case
DoP&T, through its internal note dated 17.12.2024, sought to address long-pending disparities in the pay fixation rules for re-employed pensioners. The proposal intended to align the fixation policies uniformly across ranks and services, especially between officers and PBORs/Group B & C employees, in line with historical principles set in MoD’s 1983 orders.
But the Finance Ministry’s detailed examination has now cast doubt on the feasibility and preparedness of the proposal.
⚠️ Key Objections Raised by Ministry of Finance
1. Lack of Clarity on Pension Threshold
The Finance Ministry pointed out that DoP&T has not specified whether a threshold limit of pension would be applied for PBORs and Group B & C employees, as is done for officers. Earlier, in 2019, DoP&T had proposed to ignore 70% of pension or ₹15,000 (whichever is lower) while fixing pay. The current note does not mention whether this policy continues or has changed.
📌 Implication: Without a threshold, the entire pension may be ignored, resulting in non-uniformity and inequity in pay fixation.
2. Potential Financial Burden
In case no threshold is applied and the entire pension is ignored for PBORs and Group B & C employees, it would imply full pay protection in re-employment. This could lead to huge financial implications for the government. The Finance Ministry has asked DoP&T to quantify this impact and provide a detailed estimate before any decision is taken.
3. Retrospective Implementation – A Red Flag
DoP&T has proposed to make the changes retrospective from 01.01.2016, aligning with the implementation of the 7th Central Pay Commission (CPC). However, the Ministry of Finance firmly stated that:
- This was not a recommendation of the 7th CPC.
- There is no precedent or justification for retrospective application.
- Such action could lead to massive arrears and complicated adjustments, straining government finances.
📌 Observation: Retrospective revisions are rare and discouraged, especially when not recommended by a Pay Commission.
4. Age Enhancement from 55 to 57 Years
Currently, the rule of ignoring a portion of pension applies to those who retire before the age of 55. The 2019 draft proposed by DoP&T intends to raise this age limit to 57 years, which would further increase the number of eligible beneficiaries and thereby raise the financial liability. The Ministry has demanded that DoP&T clarify their current position and quantify the impact.
5. Unclear Provisions for Special Categories
The draft also refers to special categories of personnel, such as:
- Ex-combatant clerks
- Military reservists
- Short Service Commissioned Officers
- Retrenched staff
However, the DoP&T proposal does not clearly define how the revised rules would apply to these categories. The Ministry of Finance has asked for explicit clarification and policy intent for each such group.
📑 Ministry’s Advice to DoP&T
In light of the above observations, the Department of Expenditure has returned the file and advised DoP&T to:
- Reconsider the entire proposal.
- Provide a clear, updated draft with defined rules.
- Include an estimate of financial implications.
- Consider referring the matter to the upcoming 8th Central Pay Commission.
The communication carries the approval of the Secretary (Expenditure) and was signed by Vijay Kumar Sharma, Under Secretary, on 26.06.2025.
🗣️ What This Means for Re-employed Ex-Servicemen
This development highlights the continued bureaucratic roadblocks in ensuring pay parity and fair treatment of re-employed ex-servicemen, particularly PBORs. While the intent to address anomalies exists, the lack of policy clarity and financial estimates is delaying concrete decisions.
Until the DoP&T re-submits a revised and robust proposal addressing these concerns, the long-standing demand for uniform pay fixation rules remains in limbo.
🔄 Next Steps Expected
- DoP&T to clarify pension threshold policies.
- Financial impact analysis to be submitted.
- Proposal may be evaluated by the upcoming 8th CPC.
- Revised policy may include clearer guidelines for all categories of ex-servicemen and re-employed staff.
📌 Conclusion
The repeated return of the file underscores the complexities involved in reforming pay rules for re-employed pensioners. While the recognition of disparities is a step forward, the government must act swiftly to resolve policy gaps, ensure financial feasibility, and deliver justice to the large community of ex-servicemen who continue to serve the nation post-retirement.
So, what lies ahead?
As the matter is currently being pursued by the All India Re-employed Ex-Servicemen Association (AIREXSA), it is important that we place our trust in their efforts and wait for their next course of action. AIREXSA has been consistently advocating for the rights of re-employed ex-servicemen, and we hope that their continued engagement with the authorities will lead to a just and favorable resolution.
Detailed copy of the remarks of DoE is available – Click here
This article has been authored by Bikash De.
