Pay Fixation – Not a Dream but Legitimate Rights of Exservicemen

Pay Fixation at Legitimate Mothodolgy Demanded by Retired JCOs/OROR

Demand for Legitimate Pay Fixation in Central Civil Services in various Govt Department & Ministries for Reempoyed 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 . 

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.

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.

In 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. 

The organization named KREWA, Kolkata Reemployed Exservicemen  Welfare was the pioneer to initiate this movement and spreaded awareness among the ex-servicemen in PAN India basis.  With able leadership of Mr Bikash De, Secretary General of KREWA, they have convinced the nodal authorities of DOPT, MoD, DoP&PW & MoF to understand the basic discrimination in modalities of pay fixation of Reemployed Commissioned Officers and Reemployed JCOs/OR in Govt departments.  

In a later stage, All India Reemployed Ex-Serviceman Association was formed and till date they are closely coordinating to reform the discriminative CCS Fixation of Pay of Reemployed Pensioners (RP) Rules 1986 so that the disparity of Pay Fixation modalities between Officers and Other Ranks are removed and pay of reemployed ex-servicemen belong to all ranks should be fixed at the same stage as last pay drawn before retirement.

In the year 2010 Govt of India  issued another set of instructions regarding applicability of pay fixation which caused huge ambiguity in interpretations and some department started giving pay fixation benefit to reemployed JCOs/OR.  Ignorable part of pension increased from Rs 1,500 to Rs 4,000/- for Commissioned Officers. Those who did not get the benefit, raised their voice through RTI applications and PG Portal. Ultimately all central Govt department seized to extend the pay fixation benefit to reemployed JCOs/OR.  Approx 400 Court case raised in different part of the country.

Demand for Pay Fixation at the same stage as last pay drawn by Exservicemen

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.

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.

The draft Revised Pay Fixation Orders 2019  has been circulated to all stake holders and they have offered their views which have been compiled and forwarded by the DOP&T to  the Ministry of Finance for necessary Expenditure Sanction/Administrative Approval so that the final orders will be issued very soon.  Recently it has been informed by the AIREXSA that the case file 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.

DOPT has studied the file in details and necessary rectification on the proposal and additional documents are being supplied alongwith the case file within a reasonable time period.  It is expected that the Revised Pay Fixation orders 2019 will be published by the end of this year.


History of Pay Fixation of Reemployed Ex-servicemen

In 1958, Ministry of Finance, Department of Expenditure issued guidelines regarding modalities of pay fixation of all ranks. At that time pay fixation at higher stage was applicable to the reemployed persons who were in undue hardship.  The parameter of undue hardship was determined with some simple arrays. It was in simple form like that,  If your pay in reemployed civil post plus pension sanctioned less ignorable  part  total amount  is less than pre-retirement pay the condition will be treated as undue hardship.  In such cases, advance increment was granted equal to number of years served in Armed forces.


Meanwhile, in the year 2017, the All India Ex-Servicemen Association formed which was recognized by Ministry of Defence and other stake holders. The Association met Govt authorities in formal meeting to discuss the anomalies in 2016 pay fixation orders.  After repeated requests and reminders and a number of meeting held with Ministry of Defence and DOP&T, finally  DOP&T has drafted the revised order of pay fixation  which is at par with the pay fixation method adopted earlier for Commissioned Officers which were circulated to the stakeholders for necessary review and recommendation at their end.

Illustration of Pay Fixation anomaly


A re-employed commissioned officers who retired before 55 years of age and appointed in any civil post, he will be allowed to draw the pay in civil post at the same stage as the pay drawn before retirement. Deduction will be made after allowing all pay and allowances on the pay so fixed. The deduction amount is equivalent to pension less  non ignorable part of pension (Rs 15,000 at present).

Click here to Know the details

Illustration of Existing Pay Fixation Modalities

For illustration Col XYZ retired with basic pay  Rs 1,60,000/-  + MSP 15,500
Pension = Rs 87,750/- + DR  =  Total Rs 1,06,178/-
Reemployed in Gp A  Central Civil Services  with initial pay Rs 56,100/- + DA (21%) + TA(7200+21%DA) + HRA (24%)  = 90,057/-
(Pay + pension should not exceed  2,25,000 – 87,500 = Rs 1,37,250 In this case the pay to be fixed &  restricted to Rs 1,37,250/-) (as per DOPT OM dt 01.05.2017 effected from 01.01.2016)
His pay will be fixed at Rs 1,37,250/- + DA (21%)+ TA(7200+21%DA) + HRA (24%) = Gross pay Rs 2,07,725/- Deduct  Pension  (Less ignorable part)  – Rs 80,000 – 15,000/- = 65,000/-  (MSP element of pension not to be counted ) Net salary drawn – Rs 2,07,725 – 65,000/- = 1,42,725/-

His total income Pay + pension =  Rs. 1,42,725/- + Rs. 87,750/- = Rs 2,30,475/-       

(DR on pension not applicable as ordered by the DOPT)
In case of non applicability of pay fixation benefit his total income would have  (Pay + Pension with DR)Rs 90057/- +  106178/- = 1,96,235/-

So, the Ex Commissioned officer is benefited by Rs 2,30,475 – Rs 1,96,235/- =  Rs 34,240/

Now, the JCOs/OR who retires before 55 years of age :-


Pay to be fixed at minimum of pay applicable to new recruit on the reemployed post.   Hence, they are totally ignored and no pay fixation benefit is applicable to this category.   Question of illustration does not arise here.


From the above facts following three things are extracted:-

1)    Policy makers always think about their own category. Welfare of other categories done not makes any sense to them.

2)    Joining defence forces in other than commissioned rank is a matter of pride, because we have the ability to live without any special provisions of government.

3)    The things which are getting wrong with someone else do not bothered others.

This 1986 DOPT orders was applicable to employees of Central Civil Services only.  Bank and other PSU and some stat government employees were allowed to get the pay protection, the methodology which was different this and ultimately these reemployed JCOs/OR were ultimately benefitted enough. 

DOP&T has denied to accept the recommendations of Raksha Mantri’s Expert Committee on the following grounds as per the discussion below :

(a)        According to DOP&T, MSP is already included in Pension so it may not be feasible while fixation of pay in reemployed post.  This statement has no legal stand as the element of MSP is deducted while ignoring part of pension as per extended Govt rules on the subject published in 05.04.2010.

(b)       DOP&T has shown reference of clarification of MoD on the treatment of MSP while pay fixation. Actually MoD has issued their clarification during 2008 about treatment of MSP while reemployed in Defence services. It is to mention here that this provision was for reemployed officers who are reemployed in Defence only where MSP is a part of pay of reemployed post also by virtue. So MSP will not be counted with preretirement pay. But in case of reemployment in civil department, no MSP is applicable.  So, MoD clarification of 2008 is not applicable for the instant case. DOP&T has misinterpreted this order which need to be rectified.

(c)        DOP&T has expressed their opinion that MSP is applicable to Military personnel to keep and edge over their civil counterpart hence it may not be taken in to account while pay fixation in civil post. This is just an excuse by them and has no basis. Hence need to be reconsider on the grounds of acceptance of legitimate rights of the veterans.

Latest Position of Pay Fixation Case

In this regard it is pertinent to mention here that DoP&T had forwarded the draft CCS (Fixation of Pay of Re-employed Pensioners) Orders, 2019 to Dept of Expenditure way back in the year 2020 for necessary approval. However, after seeking various inputs from various authority and studying DoP&T’s proposal in detail, the file was returned to DoP&T several times and finally approval by the Dept of Expenditure is still delayed due to difficulties in interpretation. It is indeed sad and shocking to learn that the matter, which was already studied in detail on the previous occasion, is still “in dark”.

It is very much clear that the matter of pay fixation of ex-servicemen is not new to Min of Finance and therefore, the members of AIREXSA expressed their deep sense of anguish over the delay in granting approval of  the proposed Orders. The re-employed ex-servicemen serving the Govt of India in various organizations feel deprived of natural justice in the matter of pay fixation.

As the matter is in active consideration by DOP&T, it may be expected that the new Orders of Pay Fixation of Reemployed Pensioners will be released soon after Financial approval of Ministry of Finance, Dept of Expenditure.

Some important orders related to Pay Fixation

Ser NoLetter No & DateSubjectPage Link
1.Ministry of Finance, Dept of Expenditure OM No 8(34) Estt-III/57 dated 25 Nov 1958Pay fixation of Reemployed pensionersClick here to open
2.Ministry of finance OM No F.5(14)-E-III(B)/77 dt 19. Jul 1978To ignore  Rs 125 for pay fixation of ex-sm retired before 55 yrs of ageClick Here
3.Ministry of Finance OM No F.4(3)-E.III/82 dated 13 Dec 1983Entire pension of reemployed ex-servicemen/pensioner retired before 55 yrs of age will be ignored for pay fixationClick here to open
4.CCS (Fixation of Pay of re-employed Pensioners) orders 1986 Pay fixation procedure effected from 1.8.1986Click here to open
5.Dept of P&T OM No 3/1/86-Estt (P-II) dated 31 July 1986Forwarding letter of CCS (Fixation of Pay of re-employed Pensioners) Orders 1986Click here to open
6.DOPT OM No 3/13/2008/Estt/Pay II dated 11 Nov 2008Pay fixation of pre and post 2006 reemployed pensioners.Click here to open
7.Rule 7 of CCS RP Rules 2008Pay fixation of central govt employeesClick here to open
8.DOP&T  O.M. No.3/19/2009-Estt.(Pay.ll) dated 5.4.2010 Amendment in Pay fixation of reemployed Exsm in 6th CPCClick here to open
9.DOP&TOM No 997012/2014-Estt(Pay) dated 26 June 2014 Regarding existence of DOPT OM dt 11.11.2008Click here to open
10.DOPT OM 3/19/2009 dated 08/11/2010 MSP of Exsm to be counted for pay fixationClick here to open
11.Ministry of Defence letter No. 1/69/2008/D (Pay/Service) dated 24th July 2009, Pre-retirement pay has been definedClick here to open
12.DoPT ID Note No. 1101965/2015-Estt.(Pay-II) dated 28th August 2015 Clerification by DOPT on pay fixation of ExsmClick here to open
13.Supreme Court verdict of B. Ravindra Vs DG post dated 08/11/96. Pay fixation of exsmClick here to open
14. PCDA Allahabad circular 166 and 179 dated 07/03/2013 and 12/05/2015Payment of  DAClick here to open Circular 166Click here to open Circular 179
15.Pay Fixation of Ex-servicemen re-employed PSBs/PSlCs/PFlsPay fixation in PSUClick here to open
16.6(8)/E.III/63 dt 04.11.2017Fixation of pay of ex-Combatant Clerks retired/released from service in the Armed Forces on re-employment as LDCs/Junior Clerks in Civil postsDownload (9.63 MB) 

16(21)-E.III/52 dt 12/09/2017 – Treatment of pensions of the personnel of the former Indian State Forces on their re-employment in a civil capacity under the Government of India Download (806.33 KB) 

6(8)/E.III/63 dt 04/11/2017 Fixation of pay of ex-Combatant Clerks retired/released from service in the Armed Forces on re-employment as LDCs/Junior Clerks in Civil postsDownload (9.63 MB) 

4(4)/E.III/83 dt 06/08/1984 Application of Liberalised Pension Formula to pre-31-3-79 pensioners – implementation of the judgement of the Supreme Court – re-fixation arising on account of such enhanced pension in the case of re-employed pensioners question – regarding Download (632.84 KB) 

7(34)E.III/62 dt 01/16/1984 Fixation of pay of re-employed pensioners – General policy thereofDownload (30.73 KB) 

4(3)-E.III/82 12/13/1982 Fixation of pay of Civil pensioners on re-employment – Raising of limit of exemption of pensionDownload (63.87 KB) 

5(14)-E.III(B)/77Fixation of pay of re-employed pensioners – General policy thereofDownload (426.78 KB) 07/19/197867/II/16/74-ICApplicability of CCS (RP) Rules, 1973 to persons re-employed in Government service after retirement and whose pay is debitable to Civil estimatesDownload (499.05 KB) 04/12/19

7867/II/16/74-ICApplicability of CCS (RP) Rules, 1973 to persons re-employed in Government service after retirement and whose pay is debitable to Civil estimatesDownload (890.67 KB) 

02/25/19784(9)-E.III(A)/74Fixation of pay of ex-combatant clerks on their re-employment as LDC/Jr.Clerks on or after 1.1.73 consequent on revision of scale of pay of the postDownload (232.46 KB) 

08/09/197467/II/16/74-ImpApplicability of CCS (RP) Rules, 1973 to persons re-employed in Government service after retirement and whose pay is debitable to Civil estimatesDownload (1.06 MB) 

03/18/19743(2)-EV(A)/71Notification – Amendment to Civil Service RegulationsDownload (667.11 KB) 05/06/1971

5(12)Est.III/B/70Fixation of pay of re-employed pensioners – General policy thereofDownload (1.26 MB) 02/18/19715(16)-E.III(B)/66Notification – Amendment to Civil Service RegulationsDownload (515.7 KB) 10/15/1969

5(27)-E.III(B)/68Fixation of pay of re-employed pensioners – General policy thereofDownload (299.8 KB) 10/25/19685(1)Est.III/B/68Fixation of pay of re-employed pensioners – General policy thereofDownload (368.45 KB) 04/08/1968

4(2)-E.III(A)/68Fixation of pay of ex-Combatant Storemen retired/released from service in the Armed Forces on re-employment as Storemen in Civil postsDownload (57.15 KB) 03/19/1968

6(8)-E.III(A)/63Fixation of pay of ex-Combatant Clerks retired/released from service in the Armed Forces on re-employment as LDCs/Junior Clerks in Civil postsDownload (390.37 KB) 03/16/1966

6(8)-E.III/63Fixation of pay of ex-Combatant Clerks retired/released from service in the Armed Forces on re-employment as LDCs/Junior Clerks in Civil postsDownload (245.08 KB) 01/09/1965

5(21)-Est.III(B)/64Fixation of pay of military pensioners re-employed in civil postsDownload (36.27 KB) 06/15/19647(14)-E.III/63 Fixation of pay of re-employed Government servants on the revised scales. Download (275.94 KB) 03/23/1964

7(45)-Est.III/62Fixation of pay of re-employed Government servants on the revised scalesDownload (338.41 KB) 01/16/1964

7(43)Est.III/62Fixation of pay of ex-Army Medical Officers on re-employed in civil postsDownload (339.26 KB) 08/21/1963

7(45)-Est.III/62Fixation of pay of re-employed Government servants on the revised scales.Download (167.63 KB) 06/06/19637(38)-E.III/62Fixation of pay of re-employed pensioners – General policy thereofDownload (367.8 KB) 03/13/1963

7(47)-E.III/62Fixation of pay of re-employed Government servants on the revised scalesDownload (779.85 KB) 02/04/1963

7(46)-E.III/62Counting of service for pension in the case of re-employed pensioners12/27/19628(34)/Est.III/57Fixation of pay of re-employed pensioners – General policy thereofDownload (3.24 MB) 11/25/1958

20(16)-E.III/55Model Agreement FormsDownload (5.09 MB) 06/04/1955

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