MSP INCLUDED IN THE LATER NOTINGS & THEY TRIED TO EXCLUDE BUT COULD NOT SUCCEED

-Page 11/N-

Ministry of Defence

D (Pay/Services)

Reference Defence (Finance) Note at Page-10/N. 

          This is regarding implementation of the recommendations of the 7^th Central Pay Commission (CPC). A copy of Department of Expenditure Note no. 1-2/2016-IC dated 28.6.2016 along with copy of the minutes of meeting of Cabinet held on 29.6.2016 has been received from Ministry of Finance, D/0 Expenditure, Implementation Cell for implementation of recommendations of the 7^th Central Pay Commission (CPC) – issue of Resolution and revised rules – reg. The previous Resolution issued by the Government at the time of 6^th CPC is at Flag/’A.’  The Ministry of Finance has issued the Resolution No. 1-2/2016-IC on 25.7.2016 (Copy at Flag/’B.’)

2.       Some of the important recommendations in respect of the Defence Personnel (PBOR) are mentioned below: -

          (i)      Implementation of the revised pay structure will be w.e.f 01.01.2016;

(ii)      Pay related matter;

(a)      The existing system of Pay Band and Grade Pay has been replaced with separate Pay Matrices for both Defence and Military Nursing Services personnel.

(b)             Fitment of each employee in the new Pay Matrix would be done by multiplying his/her basic pay on the date of implementation by a factor of 2.57.

Note-1        With regard to fixation of pay in the new Pay Matrix as on 01.01.2016, the existing pay (Pay in Pay Band plus Grade Pay) in the pre-revised structure as on 31.12.2015 shall be multiplied by a factor of 2.57. The figure so arrived at is to be located in the Level corresponding to employee’s Grade Pay in the new Pay Matrix. If a Cell identical with the figure so arrived at is available in the appropriate Level, that Cell shall be the revised pay; otherwise the next higher cell in that Level shall be the revised pay of the employee.

Note -2       After fixation of pay in the appropriate Level as specified in Note-1 above, the subsequent increments shall be at the immediate next Cell in that Level.

-Page 12/N-

®       General recommendations on pay recommended by the Commission have been accepted with the following exceptions in Defence Pay Matrix in order to maintain parity in pay with Central Armed Police Forces (CAPFs).

3.                  The index of Rationalisation of Level 13A (Brigadier) in Defence Pay Matrix may be revised upward from 2.57 to 2.67.

3.                  Additional 3 stages in Levels 12A (Lt Col), 3 stages in Level 13 (Colonel) and 2 stages in Level 13A (Brigadier) may be added appropriately in the Defence Pay Matrix.

iii.      Increase in Military Service Pay (MSP) of Personnel Below Officer Rank (PBOR) from Rs 2000/- to Rs 5200/- p.m. MSP would be counted only for Dearness Allowance (DA) and Pension purposes; 

iv.      There will be two dates for grant of increment viz, 1^st January and 1^st July of every year, instead of the existing date of 1^st July. However, an employee will be able to avail annual increment only on one of these two dates depending on the date of appointment, promotion or grant of financial upgradation;    

3.                  Recommendations on Allowances (except Dearness Allowance) would be referred to a Committee comprising Finance Secretary & Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Personnel & Training etc. The Committee would submit its report within a period of 4 months. Till a final decision on Allowances is taken based on the recommendations of this Committee, all Allowances would continue to be paid at existing rates in the existing pay structure, as if the pay had not been revised w.e.f. 1.1.2016 i.e. status quo would be maintained. 

                   vi.      Arrears of Pay would be paid during the current financial year.

vii.     Recommendations not relating to pay and allowances and other administrative issues specific to department/cadres/posts would be examined separately as per the Transaction of Business Rules/Allocation of Business Rules.

3.       It is further stated that after examining the minutes of meeting of Cabinet held on 29.6.2016, a draft Resolution was prepared in anticipation and submitted for approval. The proposal has been approved by AS ® vide Note -2/N. Subsequently, the file was sent to Defence (Finance) for their concurrence and vetting of the Draft Resolution vide Note 3/N. However, Defence (Finance) vide their Note on page 4/N returned the file stating that the Resolution needs to be authenticated before concurrence is given. Vide note on page 9/N the file was again sent to Defence (Finance) after authentication of Resolution for vetting of the draft Resolution in respect of Defence Personnel (PBOR). Now, Defence (Finance) has given its concurrence vide their Note (Note Page 9/N) dated 3.8.2016.

4.       In view of the above, the file is submitted for kind approval of Defence Secretary. Thereafter, the file will be referred to the Ministry of Finance, Department of Expenditure (Implementation Cell) for vetting the Resolution.

Sd/-----------

3/8/16

Section Officer (P/S)

US (P/S)  on leave

DS (AG-II) Def (Finance) have vetted draft resolution. The file is submitted for kind approval of Secretary (Defence) please.                  Sd/------------------ 4/8/16

JS (E)           Sd/---------- 4/8/16

                   (V Anandarajan) JS (Estt)/CAO 

AS (K)         Sd/------------- (Suresh Kumar) AS (K) & CVO 4.8.16

Defence Secretary           Appd           Sd/-------- 8/8/16

JS (E)           Sd/------------ 8/8/16

DS (AG-II) Sd/------------- 8/8/

US (P/S)     Sd/----------9/8/16

SO (P/S)     Sd/---------- 9/8

Ministry of Finance, Deptt of Expenditure (IC Cell)         Sd/-----------9/8/2016