Ex-servicemen re-employed in Central Civil Services, Autonomous Bodies, and Public Sector Undertakings (PSUs) often face inconsistencies in the fixation and protection of their pay. Despite their dedicated service and valuable experience, these personnel encounter procedural ambiguities and policy variations upon rejoining government service or public sector institutions. Recognizing this long-standing grievance, the Department of Personnel and Training (DoPT) and the Department of Financial Services (DFS) under the Ministry of Finance have been working towards a more equitable and unified framework for pay fixation of re-employed ex-servicemen.
DoPT’s Efforts for Policy Consolidation
Systemic Review and Draft Policy
The DoPT has been actively revising and consolidating the CCS (Fixation of Pay of Re-employed Pensioners) Orders, 1986, along with related instructions issued over time. The department aims to introduce a uniform methodology for pay fixation applicable to all categories of re-employed pensioners:
- PBORs (Personnel Below Officer Rank)
- Commissioned Officers (COs)
- Ex-Combatant Clerks
These revisions are in response to:
- Grievances submitted by ex-servicemen associations.
- Observations from the Department of Expenditure (DoE).
- Pay-related instructions issued by Department of Financial Services (DFS) under OM No. 4/3/2012-Welfare dated 17.02.2024, particularly concerning PSU employees.
Current Status
The draft revised policy is undergoing inter-departmental consultation. DoPT is awaiting concurrence from the Department of Expenditure, and no further action can be taken until this is received. Given the ongoing nature of these discussions, the draft instructions have not been made public, as premature sharing may hinder the consultation process.
DFS Guidelines for PSUs and Banks: A Reference Framework
A significant precedent exists in the form of DFS Office Memorandum No. 4/3/2012-Welfare dated 17.02.2014, which addresses pay fixation for ex-servicemen re-employed in Public Sector Banks (PSBs), RBI, Insurance Companies, IRDA, PFRDA, etc. These guidelines were developed by the Indian Banks’ Association (IBA) to standardize pay fixation and eliminate disparities across financial institutions.
Key Provisions of the DFS Guidelines
1. For Ex-Servicemen Joining Workmen Cadre (Clerical/Assistant Level)
- Pay Protection is provided based on last pay + Dearness Allowance (DA) drawn at the time of retirement.
- The definition of pre-retirement pay includes:
- For post-2006 retirees: Pay in pay band + Grade Pay (inclusive of Non-Practicing Allowance if any).
- For pre-2006 retirees: Basic Pay + Rank Pay + DA + Dearness Pay.
- Military Service Pay (MSP) is excluded from protection but is included in the pension, which continues to be drawn in full.
- Pension is not deducted from the re-fixed pay in the bank, allowing full dual benefit.
2. For Ex-ECOs/SSCOs Joining Officer Cadre
- Pay is fixed at the minimum of the officer scale.
- Increments are given for each completed year of military service, provided emoluments do not exceed those last drawn in the Armed Forces.
- The benefit is limited to those joining at the lowest officer rank (JMGS-I); those appointed in higher grades must at least receive pay equivalent to JMGS-I with added weightage for service.
3. Ex-Service Officers Appointed in Workmen Cadre
- If pension and retirement benefits are not ignored, pay is fixed close to or below the last drawn pay.
- If minimum of new pay scale > last pay drawn, then pay is fixed at the minimum of the new scale, with pensionary benefits reduced from it.
- Graduation increments are allowed even if the degree was obtained after joining bank service (subject to conditions).
- Training periods (pre-commission) are not counted for pay fixation benefits.
Expected Impact and Way Forward
The DFS guidelines have already brought some clarity and parity within the banking sector. If the DoPT’s revised unified policy follows a similar pattern, the following outcomes can be expected:
- Standardization of pay fixation for re-employed ex-servicemen across all central government bodies, PSUs, and autonomous institutions.
- Pay protection aligned with last drawn emoluments, excluding MSP but ensuring no deduction from pension.
- Service-based increments and allowances for re-employed commissioned and non-commissioned officers.
- Reduction in litigations and grievances, as discrepancies in pay fixation methods will be eliminated.
The consolidated DoPT guidelines—once finalized and approved—are likely to serve as a universal blueprint applicable across civil services and public organizations, ensuring dignity, equity, and fairness for India’s veteran workforce.
Let’s hope for the best
The journey towards a just and uniform pay fixation framework for re-employed ex-servicemen has seen steady progress. While the DFS guidelines have set a strong precedent within the financial sector, the DoPT’s upcoming consolidated instructions promise to resolve long-standing disparities across all sectors. The final implementation, pending approval from the Department of Expenditure, holds the potential to significantly improve post-retirement career prospects and financial stability for those who have served the nation in uniform.
