Tribune News Service

New Delhi, May 3

The government tonight notified the 7th Central Pay Commission (CPC) with revised emoluments for the three armed forces, while addressing a few core anomalies and leaving out some for resolution later on.

The pending ones include non-functional upgrade (NFU), a kind of pay increase without promotion as given to civilian employees. Also on the pending list is higher military service pay (MSP) for junior commissioned officers (JCOs).

They rise from the lower ranks (jawans). The 7th CPC has clubbed the MSP of JCOs and jawans at Rs 5,200. The demand is to have it at Rs 10,000 for the JCOs.Announcing the changes, Defence Minister Arun Jaitley said the issue of NFU was sub judice but added three of the demands had been accepted.Jaitley listed these saying the pay matrix had been extended from 24 to 40 stages (allowing the pay scale to grow); the index of rationalisation of pay for Lieutenant Colonels and Colonels will be fixed at a ratio of 2.67 instead of 2.57; and pay protection for Major Generals, who on getting promoted from the rank of Brigadier used to see their pay getting reduced.The Cabinet also approved the retention of percentage-based regime of disability pension implemented post 6th CPC, which the 7th CPC had recommended to be replaced by a slab-based system.A slab-based system would have resulted in reduction in the amount of disability pension for existing pensioners and a reduction in the amount for future retirees. T

he benefit of the proposed modifications will be available with effect from January 1, 2016, that is the date of implementation of the 7th CPC recommendations.The CPC for the forces had been held in abeyance since August when the Chiefs of the three armed services — Army, IAF and Navy — collectively wrote to the PM seeking redress.

Pension revision formulation

The Cabinet has approved changes to the method of revision of pension of pre-2016 pensioners and family pensioners based on suggestions made by the committee chaired by Secretary (Pensions) constituted with the approval of the Cabinet. The modified formulation of pension revision approved by the Cabinet will entail an additional benefit to the pensioners and an additional expenditure of Rs 5,031 crore for 2016-17 over and above the expenditure already incurred in revision of pension as per the second formulation based on fitment factor. 

Key decisions

• Pay matrix extended from 24 to 40 stages
• Pay rationalisation index for Lieut-Colonels, Colonels fixed at ratio of 2.67
• Pay protection for Maj-Generals
• Percentage-based regime of disability pension retained, no to slab-based system