Pay Fixation Latest News for Reemployed Exservicemen & Role of DOP&T with Ministry of Finance

Pay fixation of Reemployed Exservicemen JCOs/OR is matter which has been approached by many organizations and individuals to the DOPT from 1986 to today.  But still no solution has been found. Yes, this pay fixation for re-employed ex-servicemen belongs to JCO OR category. I am talking about them.

According to CCS fixation of Pay of reemployed pensioners (RP) rules 1986., all re-employed pensioners who are below Commissioned officers rank,  they are eligible for pay fixation as per initial pay of the re-employed post. That is, if you are retiring from any rank in JCOs/OR, suppose you have retired from rank in Subedar and you have joined Railway Group D, your pay will be fixed as per initial basic pay of a Group D, that is Rs. 18,000 today. No matter how much experience you have, it has no value. Whereas, as per CCS pay fixation rule 1986, in case of commissioned officers and Gazetted officers, their last drawn pay in previous service, be it Armed Forces or Civil Establishment, when they join and get re-employed, they will get the same pay here as well, subject to some deduction.

In today’s date, except Rs. 15,000, the remaining basic pay will be deducted from the total pay so fixed alfter allowing all allowances and related pay. For example, if Colonel XYZ, whose last pay was Rs. 1,60,000, if Colonel XYZ joins in Director of Accounts in any department, say Audit and Accounts, his pay fixation will be Rs. 1,60,000 plus HRA, plus DA, plus other allowances like Transportation Allowance, if all these allowances add up, his total will be Rs. 3,00,000.

So how will his pay fixation be? How much pay will be drawn? His deduction will be Rs.80,000-15000 = 65,000/- 

As you can see here, if his basic pay was Rs. 1,60,000, his pension will be Rs. 80,000.

So leave deduction will be less 15,000/- from his pension amount Rs. 80,000 – Rs 65,000/-.

So he will raw pay for Rs 2,35,000/- pm. Now look at this retired officer, Colonel XYZ. If he gets initial pay fixation like a PBOR, then his salary in the director post will be not more than Rs. 1,60,000.

No matter what his pay is. If he is in grade 10, 11 or 12, then his pay will not be more than Rs. 1,60,000 including all allowances. If he was re-employed, then his basic pay including  TA DA, HRA should have to be Rs. 1,60,000/-.

Whereas If he was allowed pay fixation as per last pay drawn, then he will get Rs. 2,55,000.

So, you can see the clear cut disparity between a JCOs/OR and Commissioned officer even after retirement.   The policy made in 1986 is not right.   When approached by the victims and Exservicemen Associations, DOPT felt the need for a uniform pay fixation policy.

DOPT should have a uniform pay fixation policy for all. So that no one gets undue benefit. Like I have shown you the calculation.

  Due to such a discriminatory policy,  no one should be deprived. 

A Sub Maj retired in the last year at the age of 49 with last basic pay 65,000/- . When he joined Railway Group D  his pay fixed at Pay Level 1 Rs 18000/- pm only. You can understand that this is a discriminatory policy.

You can see how much undue benefit he is getting. On the other hand, he is deprived and getting less salary. DOPT understood this and made a draft pay fixation policy.

The policy was sent to the Minister of Finance for approval. It was sent many times. The file was sent to DOPT again and again.  They sought a clarification, then it is sent again. This has been going on for 7 years since 2017.

Finally, the Minister of Finance turned down the file. He said that if the uniform pay fixation policy is given as suggested by DOPT. He gave four points.

First point is that due to such financial implications, there will be a lot of burden on the Government Exchequer.

Point No. 2  he said that if Rs 15,000 is ignored for officers, the same should not be ignored for PBOR. If there is, then PBOR will get undue benefit. Therefore, the proportionate amount of ignorable part of pension should be decided.

DOPT could not decide this. It is not possible to decide like this. Because all officers do not return with the same rank and same age.

From Major to General, their pension amounts are different. So, it is very difficult to decide the average percentage.

Point no.  3, he said that if such a uniform policy is made, PBOR will get benefit in the last withdrawal. Then it will be a lucrative policy. Because of this, the most of the soldiers will leave Indian Armed Forces earlier.

Because they will get a good benefit in the Civil life.

Point no. 4, he said that if such a uniform policy is made in the last withdrawal, it will be an undue benefit for PBOR.

You can see these four points in DOPT’s noting sheet. Because of these four points, the file was turned down.  You can say that this file was sent to DOPT again to resubmit it with clarification. When DOPT contacted Team AIREXSA, they said that they are thinking of making a rational policy again. But the work is still going on.

It has not been completed yet. So friends, this was the update about pay fixation. We will try to provide you with further updates.

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