Pay Fixation of Reemployed Exservicemen : Status as on date

Anomaly in Pay Fixation

Pay fixaton in Central Govt department for reempoyed exserviceman 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 in that age while those exservicemen are given only the initial pay at their reemployment in Govt jobs.  However pay of reemployed Commissioned Officers are 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 exservicemen (irrespective of rank) so that no financial hardship occured.  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,  read the paragraphs at the bottom

You are well known that most of the Nationalised banks have allowed pay fixation to the reemployed Exservicemen at the same stage as last pay drawn before their retirement from Defence Forces. No deduction from the pension is applicable to such reemployed Exservicemen.

In the other hand, central government departments and ministries including state governments refused to allow pay fixation of reemployed exservicemen 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.  The organizations named KREWA, Kolkata Reemployed Exservicemen  Welfare Association  is the pioneer to initiate this movement and spread awareness among the exservicemen in PAN India basis.  With able leadership of Mr Bikash De, Secretary General of KREWA, they have convinced the nodal authorities 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.

The Struggle for Pay Fixation

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.

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.

Rays of Hope in Revised Pay Fixation Orders 2019

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

Detailed Study of Pay Fixation of Reemployed Exservicemen

Pay fixation of reemployed Exserviceman is a long pending issue and now I want to narrate the entire case history and present status of the case. After putting several years of bona fide military service in Indian Armed forces, soldier, sailors and airmen are left in uncertain civil life at their middle age. A very few of them only get reemployed in Govt department . Burt their pay is fixed at the entry pay which is applicable to a just college pass out new teenager  recruit.   Whereas the retired JCOs/OR at this time heavily shucked with burden maintain his family in terms of education & marriage of children, built a shelter and take care of old age parents.

History of Pay Fixation of Reemployed Exservicemen

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.

In 1983 the system turned more simplified.  Entire pension of JCOs/OR treated as ignored for the purpose of pay fixation.  As a result if your present pay of civil post was less than your pre-retirement pay then you were eligible to be treated under undue hardship.  Advance increment was still applicable.


In 1986 the controlling authority of pay fixation related orders shifted from Ministry of finance to DOPT. After implementation of 4th CPC on 31 July 1986 DOP&T issued guidelines where modality of pay fixation has divided in to two different categories.  The first one is for Retired Commissioned officers or Gp A officers of Civil sides. And another set of orders for reemployed JCOs/OR or equivalent civil post.


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. At present the draft revised CCS Fixation of pay of Reemployed Pensioners is pending with MoF, DoE for financial approval after putting several clarifications.


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)
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. 

Meanwhile RTI Act 2005 enforced.

Salient features of the Proposed  CCS (RP) Fixation of pay of reemployed pensioners rules 2019.


1.    Modalities of pay fixation for JCOs/OR will be at par with other categories.

2.   Ignorable part of pension will be 15000 or 70% of pension whichever is less.

3.    DR on pension will be seized for entire reemployment period.

4.   May be effective from 01.01.2019 and retrospective effect may be applicable to existing reemployed pensioners.

5.    MSP, class pay & x pay will not be counted as part of pre-retirement  pay.

6.  Combatant clerks will be treated at par with other categories.

7.   Age limit for ignoring a part of pension increased from 55 to 57.

Here is an illustration of pay fixation of a reemployed Hav of Indian Army (Level 5 of Pay matrix)  who retired from armed forces in 30.04.2020

ILLUSTRATION (PROPOSED DOPT PAY FIXATION RULES-2019) 

Last pay in Armed force : Rs 46,000/- + 5200(MSP) +6200 (X Pay) + 360 (Class-I pay) = Rs 57760/-

Initial pay of civil post    : Rs 29,200/-

Pension sanctioned         : Rs 28,880/-

Pay to be fixed : Rs 46,000/- + DA + HRA + other allowances = Rs 71,056/-

Deduction         : Rs 23,000 – 70% of 23,000   = Rs 8790/-   (MSP, X Pay, Class pay etc are not to be counted)

Net pay in civil post = 71,056 – 8790 = 62,266/-

Net pension in civil post = 28,880/- (including commuted portion)

No DR applicable.
Total pay + Pension  = 62266 + 28880 = Rs 91146/-


ILLUSTRATION (AT PRESENT AS PER 1986 PAY FIXATION RULES)  :

Last pay in Armed force : Rs 57,760/-  (PAY IN PAY MATRICS ONLY)

Initial pay of civil post    : Rs 29200/- (Auditor/Accountant grade)

Pension sanctioned         : Rs 28880/-

Pay to be fixed : 29200/- TA(3600+21%DA)+ DA(21%) + HRA(24%)       = Rs 46696/-

Deduction                         : Nil

Net Pension                        =  28880/- + DA 21%  Rs. 34945/- (including commuted amount)

Total pay + Pension           =  46696 + 34945 = Rs 81641/


So, net difference        = 91146 – 81641 =   Rs 9505/-


The final Orders is likely to be issued by DOPT very soon.  Case has been taken with DOPT by AIREXSA for inclusion of all elements of pre-retirement pay for the purpose of fixation of pay in civil post and also for no stopping of DR on pension. Dept of Expdr, Min of Finance has raised some queries on the draft policy formulation and the necessary inputs have also been submitted to them by DOP&T recently. As on date ie , the Draft Pay Fixation Order has been kept with Ministry of Finance, DoE for Financial Approval at their end after resubmission of several clarifications.

Know more about pay fixation of reemployed exserviceman and other welfare news in this website.

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.

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