Since 1986, re-employed ex-servicemen from the Commissioned Officer category have been entitled to pay fixation at the same stage as their last drawn pay in the armed forces, with applicable allowances and a partial deduction of pension. In contrast, Personnel Below Officer Rank (PBOR) are denied similar treatment and are instead placed at par with civilian fresh recruits, leading to significant disparity.
This long-standing issue was brought to the attention of the Department of Personnel & Training (DoPT) as early as 2013. After years of sustained advocacy and detailed representations—particularly by the All India Re-employed Ex-Servicemen Association (AIREXSA) since 2015—DoPT has acknowledged the disparity and agreed that the discrimination needs to be corrected.
Accordingly, a draft Office Memorandum (OM) proposing a uniform pay fixation methodology by modifying the CCS (Fixation of Pay of Re-employed Pensioners) Rules, 1986 has been prepared. However, the proposal remains pending approval from the Department of Expenditure (DoE), Ministry of Finance, where it continues to face delays due to bureaucratic resistance and inconsistent policy interpretation.
AIREXSA continues its efforts to ensure equitable treatment for PBORs across all central services, PSUs, and autonomous bodies.
Historical Context of Pay Fixation for Re-employed Ex-Servicemen
Prior to the issuance of DoPT’s Office Memorandum dated 31 July 1986, the policy for pay fixation of re-employed ex-servicemen (ESM) across all ranks was governed by the Ministry of Finance’s 1958 Orders. Under this framework, re-employed ESM were granted advance increments equivalent to the number of years served in the Armed Forces upon joining civil organizations. This practice ensured fair recognition of prior military service and continues to be followed in nationalised banks and insurance companies under the Government of India.
The current demand is centered on restoring the core principles of the 1958 policy, which provided:
- For Commissioned Officers: Partial pension was ignored during pay fixation.
- For PBORs (Personnel Below Officer Rank): Entire pension was ignored, offering a modest compensatory benefit in recognition of:
- Shorter service tenures
- Lower terminal emoluments
- Lower re-employment salaries in civilian roles
These equitable provisions were implemented for decades. However, the Department of Expenditure (DoE) has recently raised objections and moved away from these established norms without adequate justification, leading to a policy reversal that undermines parity and fairness for re-employed ex-servicemen.
Recent Developments: DoPT’s Proactive Proposal (2025)
In an encouraging move, the Department of Personnel & Training (DoPT)—based on inputs from the Department of Ex-Servicemen Welfare (DESW)—submitted a proposal to revise and consolidate the outdated CCS (Fixation of Pay of Re-employed Pensioners) Rules, 1986, aiming for:
- Unified, equitable methodology across departments
- Restoration of fairness in the treatment of re-employed PBORs
- Reinforcement of the 1958 policy spirit of complete pension ignoral for PBORs
However, the Department of Expenditure, via ID Note dated 26.06.2025, rejected the proposal, citing financial implications and other repetitive objections—without addressing the historical, equitable, or legal justifications.
What Should be there to ensure Pay Fixation benefit for Below Officer Ranks
1. Ignoring Historical Precedent
The DoE’s own past policy from 1958–1983 endorsed full pension ignoral for PBORs. Its current objection contradicts its historical stance and creates administrative inconsistency.
2. Inconsistency within Ministry of Finance
The same Ministry (MoF) approved DFS Circular 4/3/2012-Welfare dated 17.02.2014, which allows similar benefits for re-employed PBORs in:
- Public Sector Banks
- RBI
- Public Financial Institutions
- Insurance Companies
- PFRDA
Yet, these norms are not being extended to PBORs in central government posts—showing clear double standards.
3. Dismissal of Stakeholder Representation
Despite AIREXSA’s sustained engagement and detailed explanations, the DoE continues to:
- Repeat old objections
- Refuse meaningful engagement
- Overlook legitimate claims of PBORs
4. Absence of Consultative Approach
No forum or joint stakeholder meeting has been organized to resolve the issue collaboratively, despite the complexity of the matter and its policy implications.
Demand of Reemployed Ex-servicemen
Associations of Reemployed Ex-servicemen has formally urged the DoPT to:
- Convene a Joint Meeting involving DoPT, DoE, and Associations
- Enable open dialogue and resolve misconceptions
- Finalize a just pay fixation methodology that honors service and equity
The Larger Implication
The struggle is not merely about monetary benefits—it is about:
- Justice for lakhs of PBORs who serve the nation in uniform and continue to contribute in civilian roles.
- Upholding administrative integrity, consistency, and respect for the doctrine of equality under Article 14 of the Constitution.
- Restoring faith in government policy that honors veterans’ sacrifices and values their re-employment contribution.
