MSP to be Part of Pay Fixed on Reemployment of Exservicemen : High Court Ordered

After a long period of requests and reminders, the draft Revised Pay Fixation Orders of Reemployed Exservicemen 2019 has been circulated to all stake holders and they have offered their views which have been compiled and submitted to Ministry of Finance by the DOP&T for necessary Expenditure Sanction/ Administrative Approval so that the final orders can be issued very soon. Recently it has been informed by the AIREXSA that the case file of Revised Pay Fixation of Reemployed Exservicemen which were forwarded to MoF for financial approval/sanction, has been returned with objection for rectification and provision of additional information as asked by them. The file is being resubmitted by DOP&T as soon as possible.

As communicated by the DOP&T, the methodology of proposed revised pay fixation orders for Reemployed Ex-servicemen will be universal in nature and will be free from discrimination between Commissiond officers and PBOR. But they have not confirmed the elements of pay especially, if MSP will be part of the pay to be fixed on reemployment or otherwise. However, MSP is the integrated part of pay and allowances which forms emoluments for calculation of pension also. So, All ESM associations demanded to fix the pay as per the pay calculated in PPO (including Notional pay for pre 2016 pensioners).

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However, various stake holders have also not confirmed that whether the MSP will be included in the pay to be fixed on reemployment of Ex-Military personnel or not.

Recently, High Court of Chandigarh has ordered in this regard to count the MSP as integrated part of pay for re-fixation of pay after reemployment in civil services under Govt/PSU for all ranks. DOPT is also agreed on the issue regarding counting of MSP as part of pay while fixing the pay on reemployment of Exservicemen. But untill any clear cut order is circulated to the cadre controlling authorities , the benefit of pay fixation will not to be extended by them. Justice Jagmohan Bansal has instructed Ministry of Finbance to resolve the issue as soon as possible and put all litigation on this issue to rest.

You may read the Newspaper cutting reproduced here on the matter:

To know the matter we should go back in the background of the issue. After a several meeting with the DOPT and MOD, they promised to issue suitable instructions to fix the pay of JCOs/OR at par with the Commissioned officers but the CCS (RP) Rules , Fixation of pay of reemployed pensioners 2016 failed to incorporate any such instructions in this regard. Since then, the matter is getting delayed in red tapism.

Before 1986 there was a system to fix the pay of reemployed ex-servicemen (for all ranks i.e JCOs/OR and Commissioned Officers) in such a way so that no financial hardship occurred. To overcome the financial hardship, advance increments equal to number of years served in Defence Forces allowed to such reemployed ex-servicemen. To know the detailed History of Pay Fixation, please the complete articled till bottom.

Demand for Legitimate Pay Fixation in Central Civil Services in various Govt Department & Ministries for Reemployed ex-serviceman (JCOs/OR) is a long pending issue. Every year approximately 55 thousand soldiers are released from the Indian Armed Forces. Defence Forces personnel used to retire at very young age and their average retirement age is 37.

In this stage most of their civilian counterparts earn in a suitable level in conformity with the commitments of that age while those ex-servicemen are given only the initial pay at their reemployment in Govt jobs. However pay of reemployed Commissioned Officers of Indian Armed Forces on their appointment in Civil Organisation is fixed at the same stage as last pay drawn before their retirement even today also .

As it is well known that most of the Nationalised banks have allowed pay fixation to the reemployed Ex-servicemen (irrespective of their rank) at the same stage as last pay drawn before their retirement from Armed Forces. No deduction from the pension/pay is applicable to such reemployed Exservicemen/pensioners.

On the other hand, central government departments and ministries including state governments refused to allow pay fixation of reemployed ex-servicemen (belongs to JCOs/OR category) at the same stage as last pay drawn before retirement. Thousands of RTI application and grievances at PG Portal have been lodged by the victim reemployed exservicemen JCOs/OR.

In the course of time, re-employed ex-servicemen united at their respective department level and regional level. Various reemployed ex-servicemen associations approached the Directorate of Ex-Servicemen Welfare (DESW) under Ministry of Defence and they have ultimately convinced and accepted the injustice and discrimination in the 1986 pay fixation orders and agreed to make necessary rectification.

Now, we can expect the only thing to wait for the decision of the Ministry of Finance.

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