27 September 2016
26 September 2016
20 September 2016
7TH CPC ARMED FORCES PAY AND ALLOWANCES
7th Pay Commission Resolution PBOR of Armed Forces
RESOLUTION
New Delhi, the 5th September, 2016
No : 02(E).—1. The Seventh Central Pay Commission (CPC) was set up by the Government of India vide Ministry of Finance (Department of Expenditure) Resolution No. 1/1/2013-E.III(A) dated 28th February, 2014. The Commission submitted its report on 19th November, 2015. The report covered among other things, matters relating to structure of emoluments, allowances and conditions of service of Armed Forces personnel. Government has given careful consideration to the recommendations of the Commission relating to these matters in respect of Personnel Below Officer Rank (PBOR) of the Armed Forces and have decided that the recommendations of the Commission on the aforementioned matters in respect of these categories of Defence personnel shall be accepted as follows. Some of the major points in respect of the Defence Personnel (PBOR) are as 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 Matrix for Defence forces personnel as specified at Annexure-II.
b) Fixation of payof each employee in the new Pay Matrix as on 01.01.2016 would be done by multiplying his/her basic pay 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.
(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 would be two dates for grant of increment viz. 1st January and 1st July of every year, instead of existing date of 1st 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;
(v) 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, Health & Family Welfare, Personnel and Training, Posts and Chairman, Railway Board as Members. 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 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.
2. Other instructions on Pay Fixation and increment not specifically covered in these instructions will be as in the Government of India, Ministry of Finance (Department of Expenditure) Resolution No.1-2/2016-IC dated 25th July, 2016.
3. The decisions taken by the Government accordingly on various recommendations of the Commission in respect of Personnel Below Officer Rank (PBOR) of Armed Forces are indicated in the statement at Annexure-I to this Resolution. New Pay Matrix applicable toPersonnel Below Officer Rank (PBOR) is at Annexure-II.
[No. 1(7)/2016/D (Pay/Services)]
V. ANANDARAJAN, Jt. Secy.
Annexure-I
STATEMENT SHOWING THE RECOMMENDATIONS OF THE VII CENTRAL PAY COMMISSION RELATED TO PERSONNEL BELOW OFFICER RANK (PBOR) OF THE ARMED FORCES AND GOVERNMENT DECISION THEREON (FIGURES REFERRED IN PARENTHESIS PERTAINS TO CHAPTER AND PARAGRAPH OF THE PAY COMMISSION REPORT)
Sl.No
|
Recommendations of the VII CPC
|
Decision of the Government
|
| 1 |
Fitment Factor: The Seventh CPC has recommendedfitment in the pay band in the following manner:
‘The fitment in the new matrix is essentially a multiplefactor of 2.57. This multiple is the ratio of the new minimum pay arrived at by the Commission and theexisting minimum pay. The fitment factor is beingapplied uniformly to all employees. It includes a factor of 2.25 to account for DA neutralisation, assuming that the rate of Dearness Allowance would be 125 percent at the time of implementation of the new pay as on01.01.2016. The actual raise/fitment beingrecommended by the Commission is 14.29 percent. Anidentical fitment of 2.57 has also been applied to theexisting rates of Military Service Pay (MSP), applicable to Defence forces personnel only.’ (Para 5.2.7)
|
Minimum Pay, Fitment Factor, Index of Rationalisation, Pay Matrix and general recommendations on pay recommended by the Commission in as much as it impacts PBORs accepted without any material alteration.
|
| 2 |
Rate of increment: The rate of annual increment is being retained at 3 percent. ( Para 5.1.38)
|
There would be two dates for grant of increment viz.
1st January and 1st July of every year, instead of existing date of 1st 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 |
Military Service Pay for PBORs:
The Defence forces personnel, in addition to their pay as per the Matrices above, will be entitled to payment of Military Service Pay for all ranks up to and inclusive of Brigadiers and their equivalents. The Commissionrecommends an MSP for Defence forces personnel at Rs 5,200 for JCO/ORs.
MSP will continue to be reckoned as Basic Pay for purposes of Dearness Allowance, as also in the computation of pension. Military Service Pay willhowever not be counted for purposes of House RentAllowance, Composite Transfer Grant and Annual Increment. (Para No. 5.2.22)
|
Rate of Military Service Pay (MSP) is accepted. However, MSP will be counted only for Dearness Allowance (DA) and Pension.
|
| 4 |
Group ‘X’ Pay: The Commission recommends:
a) X pay for JCOs/ORs in Group X at Rs 6,200 per month: For all X trades which involve obtaining a qualification which is equivalent of a diploma recognised by AICTE. This amount is the difference in the minimum of the Pay level 6 (corresponding to Grade Pay of Rs 4200 in VI CPC), and Pay level 5 (corresponding to Grade Pay of Rs. 2800 in VI CPC). (Para 6.2.88)
b) X pay for JCOs/ORs in Group X at Rs 3,600 per month: (standard fitment of 2.57 on the existing X pay of Rs 1,400) for those currently in X pay, but not having a technical qualification recognised by AICTE. (Para 6.2.88)
|
Accepted
|
| 5 |
Pay Scales of Honorary Commissioned Officers: TheCommission, taking note of the existing framework ofHonorary Commission recommends that the JuniorCommissioned Officers on their promotion as HonoraryLieutenant or Honorary Captain shall be placed in thepay level 10 and pay level 10 Brespectively. They will, in addition be paid Military Service Pay of Rs.15,500 per month onpar with that payable to all the Commissioned officers. (Para 6.2.92)
|
Accepted
|
| 6 |
Grant of Financial Upgradation under MACP to the DSC Personnel: Since Defence Security Corps personnel are personnel under the Army, they would also be permitted the benefit of MACP. However this benefit should be limited to a total of three upgrades in the entire service career, both during regular employment and in the course of reemployment as defence service corps personnel. As they are defence forces personnel the benefit of MACP would be extended to them after a period of eight years from their date of re-employment, in case they do not get a promotion.(Para 6.2.98)
|
Accepted
|
| 7 |
Pay Structure of Non Combatant (Enrolled): TheCommission recommends MSP for Non Combatants(Enrolled) at the rate of 70 percent of combatants.Accordingly, the Commission recommends anenhancement of MSP for NonCombatant (Enrolled) in the Air Force from the existing rate of Rs 1,000 permonth to Rs. 3,600 per month. (Para 6.2.100 & 6.2.101)
|
Accepted
|
Annexure – II
Pay Matrix (Defence Forces Personnel – except Military Nursing Service)
24 June 2016
LETTER TO DEFENCE SECRETARY FOR PAY FIXATION
KOLKATA
Registered
Under West Bengal Societies Registration Act 1961
***************************************** *********************************************
Ref No : 4001/Pay Fixation/18. Date
: 24 June 2016
To
The Secretary
Ministry of Defence
101-A, South
Block, New Delhi
defsecy@nic.in
Sir,
Subject : PAY FIXATION OF REEMPLOYED EX-SERVICEMEN (PERSONNEL BELOW OFFICER
RANK) IN CENTRAL GOVERNMENT DEPARTMENTS/ MINSTRIES
1. With
profound regards it is submitted that pay fixation of reemployed Central Govt
employees belong to ex-serviceman category who held below commissioned
officer/Gp A Officer rank at the time of their retirement are not carried out
as per Govt Orders issued from time to time due to misinterpretation/wrong
clarification by various administrative authorities. The re-employed
Ex-servicemen are being deprived by their employer/controlling authorities.
Ex-servicemen are being deprived by their employer/controlling authorities.
2. DOP&T
under Ministry of Personnel, Public Grievance and Pension is the nodal
authority in the subject matter. Presently CCS (Fixation of pay reemployed
Pensioners ) Orders 1986 amended from time to time is the basic guidelines
which required to be amended as the pay of reemployed Ex Gp A officers/
Commissioned officers are fixed at a higher stage due to his past service benefit but in case of
reemployed Ex Servicemen who held below officer rank, their pay is fixed at
minimum of pay scale of reemployed post which is denial of natural justice and violation of Article 14
of Constitution of India as discrimination arises out of such partial
provisions.
3. Detailed
statement of case for regularization/streamlining of pay fixation of reemployed
ex-servicemen is enclosed herewith for your kind consideration and issue
necessary guidelines in favour of veteran Warriors of our country who
sacrificed their vital years for India and still engaged themselves in nation
building.
(Bikash
De)
Secretary
KREWA
Enclosures
: As above.
STATEMENT
OF CASE FOR REGULARISATION OF PAY FIXATION OF REEMPLOYED EXSERVICEMEN
(PERSONNEL BELOW
OFFICER RANK) IN CENTRAL GOVERNMENT
DEPARTMENTS/ MINSTRIES
INTRODUCTION
Government of India provides
reemployment opportunity in various Departments/Ministries, Public Sector
Organisation & Autonomous Bodies for Ex-Servicemen Officers/Other Ranks of
Indian Armed Forces as a rehabilitation measure due to their compulsory retirement
at early age. According to CCS (Fixation of
Pay of reemployed Pensioners) Orders 1986 amended from time to time by
DOP&T the Reemployed Officers are allowed to draw a higher stage of initial
pay in consideration with their pre retirement pay on reemployment with Govt
organization. But in case of other ranks/PBOR (Jawans/NCOs/JCOs) most of the
Govt Deptts and Ministries have allowed to draw only minimum/entry pay of
reemployed post as applicable to fresh recruit.
Public Sector organizations i.e Nationalised Banks, LIC, NIC and other
PSUs have allowed to draw the higher stage of initial pay (at the stage of pre
retirement pay) to reemployed ex-servicemen (Jawans/JCOs/NCOs) as mentioned
above.
DETAILED JUSTIFICATION OF
THE CASE
2. Departments under Central Government
Ministries i.e. Department of Post, CBDT
& CBEC, Audit & Accounts Department, Defence Accounts Dept, Indian Railways
and many other Govt Deptts/Ministries are not agreed to allow the higher
initial pay on reemployment in consideration with pre-retirement pay to reemployed
ex-servicemen belong to below officer rank of the Armed Forces. Most of the Ex-servicemen belong to PBOR
category retired (discharged) from service by order on superannuation at the
age of 35 - 40 years. To ensure the minimum survival support earning, govt of
India introduced a higher stage of pay in several manners to the reemployed ex-servicemen
from time to time. According to DOP&T OM No 3/1/86-Estt (P-II) dated 31
July 1986 the orders relating to fixation of pay of reemployed pensioners was
scattered in a number of OM issued by
Ministry of finance from time to time.
DOP&T consolidated all these orders
and issued fresh guidelines in a single order viz CCS (Fixation of pay
of reemployed pensioners) Order 1986. The
pay fixation procedure mentioned in such earlier OMs issued by Ministry of
Finance as under :-
(i)
According to
Ministry of Finance, Dept of Expenditure OM No 8(34) Estt-III/57 dated
25 Nov 1958 pay of the reemployed pensioners will be fixed at the minimum of
pay scale of the reemployed post. In cases where it is felt that fixation of
pay of reemployed officers at the minimum of pay scale will cause undue
hardship the pay may be fixed at a higher stage by allowing one increment for
each year of service the officer has rendered before retirement in a post not
lower than that he reemployed. In other
words, If the amount of pay plus pension is less than the last pay drawn before
retirement from previous service, it will be treated as undue hardship.
(ii)
In
case of reemployed pensioner who retired before attaining the age of 55 years, Rs 125/- was ignored from the pension for the
purpose of pay fixation vide Ministry of finance OM No F.4(3)E-III/82 dated 13
December 1978.
(iii)
According to Ministry of Finance OM No
F.4(3)-E.III/82 dated 13 Dec 1983 the entire pension of the reemployed pensioners
who held below Gp A/Commissioned officer rank and retired before attaining the
age of 55 years ignored for the purpose of pay fixation. In this regard Para 4(d)(i) of CCS (Fixation
of pay or reemployed pensioners) order 1986 ) amended from time to time may be
referred.
3. Hence In the cases where pay plus non
ignorable portion of pension is less than last pay drawn before retirement, it
will be treated as undue hardship. In case of Ex - Personnel Below
Commissioned/Gp A Officer Rank, the non ignorable part of pension is zero. So
it may be described as if the pay of reemployed post is less than last pay
drawn in such cases advance increments will be granted as instructions given in
Ministry of Finance OM dated 25 November 1958.
4. Now the provisions of CCS (Fixation of
pay of reemployed pensioners) Order 1986 and its application is as under :-
(i)
In case of Reemployed officers who held
Gp A/Commissioned Officer Rank before retirement :-
According
to para 4(d)(ii) such rremployed officer who retired before attaining the age
of 55 Years, first Rs 4000/- of his pension only will be ignored for the
purpose of pay fixation.
According
to para 4(b)(ii) Pay of such reemployed officers will be fixed at the same
stage as last pay drawn before retirement as a part of pension is only ignored
for the purpose of pay fixation and remaining part of pension will be deducted
from pay so fixed at the last pay drawn.
As a result, pay of such officer is fixed much higher than the minum pay
of reemployed post. Illustration as
mentioned below :-
Colonel ABC
Retired at the age of 54 Years and reemployed as Section Officer (Gp A Gazetted
in the pay scale ( Rs 15600 (BP) + Rs 5400 (GP)
His
other details are as under :-
Last
pay drawn = Rs 54000 (BP) + Rs 8700 (GP) + Rs 6000 (MSP)
Total
pay last drawn = Rs 65100/-
Pensioned
sanctioned = Rs 32550/- pm
Initial
pay of reemployed post = Rs 15600 + Rs 5400 = Rs 21000
Pay fixation on his reemployment
Step - I Determination
of last pay drawn = Rs 65100
Step –II
Determination of non
ignorable = Rs 32550 – Rs 4000 = Rs 28550
part
of his pension
Step-III
Deduction of non
ignorable = Rs 65100 – Rs 28550 = Rs 36550
Part
of pension from LPD
Step-IV Fixation
of Initial pay = Rs
36550
From above it is notable that the minimum pay
of the reemployed post is Rs 21,000/- and the pay fixed at Rs 36,000/- , hence
the pay has been fixed at the higher stage due to consideration of his
pre-retirement pay. It is justified as the pay of an experienced person never
be equal to a fresher recruit. But the same justification should be considered
for reemployed Ex Non officer cadre persons also.
(ii) In case of Reemployed Ex servicemen who
held below Gp A/Commissioned Officer
Rank before retirement and retired before attaining the age of 55 years :-
According
to para 4(d)(i) such reemployed Ex servicemen who retired before attaining the
age of 55 Years his entire pension will be ignored for the purpose of pay
fixation.
.
According
to para 4(b)(i) Pay of such reemployed ex-servicemen will be fixed at the minimum
of pay scale of reemployed post. Pre retirement pay will not be considered for his pay
fixation. Treatment of Undue hardship
cassed due to fixation of minimum pay is neglected here.
Illustration
as mentioned below :-
Sepoy ABC
Retired at the age of 36 Years and reemployed as Lower Division Clerk in the
pay scale of Rs 5830 (BP) + Rs 1900 (GP)
His
other details are as under :-
Last
pay drawn = Rs 9550 (BP) + Rs 1900 (GP) + Rs 2000 (MSP)+ Rs 300 (Class
pay)
Total
pay last drawn = Rs 13750/-
Pension
sanctioned = Rs 6875/- pm
Initial
pay of reemployed post = Rs 5830 + Rs 1900 = Rs 7730
Pay
fixation on his reemployment
Step - I Determination
of Initial pay of reemployed post = Rs 7730
Step-II Fixation of Initial pay = Rs
7730
From
above it is notable that the reemployed ex servicemen is allowed to draw only
minim pay of reemployed post which is Rs 6020/- less than his last pay drawn
before retirement, hence the undue hardship arises as his pre-retirement pay has been neglected.
From
the illustration (i) and (ii) above it is revealed that the CCS (Fixation of
pay of reemployed pensioners) Order 1986 is not a consolidation of provisions
of OM issued by Ministry of finance rather it is an order issued by Govt of
India which intended to get benefit to Ex officers and deprive the Ex
servicemen (PBOR). This Order was
formulated to serve the interest of burocrats/ Ex Gp A Officers category only
and discriminated created in terms of violation of Article 14 of Constitution
of India.
5. In addition to above, according to para 2 of DOPT OM No
3/13/2008/Estt/Pay II dated 11 Nov 2008 it is clear that the pay of reemployed
ex-servicemen will be fixed according to rule 7 of CCS RP Rules 2008 with
adherence to CCS (Fixation of pay of reemployed pensioners) Rules 1986 amended
from time to time. The term minimum pay
refers here the pay last drawn by the reemployed ex-servicemen before
retirement (substantive pay) and the pay should be fixed in the pay structure
of reemployed post i.e. the grade pay of reemployed post only admissible in
such case. Total pay should be equal to the last pay drawn by the pensioner. .In
this regards your attention is invited to para 3(v) of DOPT OM No 3/19/2009-Estt (Pay 11)
dated 05 April
2010.
6. Pay of Reemployed Officers is fixed at
higher stage due to formula applied as prescribed in the CCS (Fixation of pay
of reemployed pensioners) Order 1986.
Whereas the interest of personnel below officer rank was totally
neglected and their pay is fixed at the minimum of pay scale which is contrary
to natural injustice and violation of Article 14 of Constitution of India as discrimination
arises.
7. Public Sector Banks, LIC, NIC and PSUs are still allowed the
higher stage of initial pay to Ex PBOR
with reference to the govt orders (DOP&T OM dt 05.04.2010). Circular of
Indian Banks Association in this regard may be referred to. Due to problem in
interpretation of Government orders issued on the subject matter, the
Department/Ministries under central govt. are not agreed to re-fix the pay of reemployed
ex-servicemen (PBOR) category as mentioned in para 4 above. The reemployed Ex-serviceman belong to PBOR
category are allowed to get their pay fixed only at the minimum/entry pay of
re-employed post which is illogical and unlawful decision made by the authority.
The victims need to fight for their rights against the system as it shows the
inability to pay the entitled wages to his own employees which is a
constitutional right of every citizen. Being Indian we all are aware of Indian
Armed Forces and service rendered by the soldiers and their supreme sacrifice
for the nation since its inception. Due to some ambiguity in the Office
Memorandum issued by DOP&T related to pay fixation Govt Depts denied to fix
the pay of ex-servicemen in higher stage.
The Jawans (PBOR) are deprived while in service and even after
retirement. As a result a large number
of ex-serviceman are suffering from financial hardship besides moral
depression. No body think about their family, their life. The policy makers never think about the
jawans, rather it was tactfully managed by them that the facility should not be
extended to Jawans who do not have any participation in formulating the policy.
Jawans are always busy to complete the task assigned to them. Discrimination created by the bureaucrats regarding
pay fixation of reemployed Officers and Jawans clarified with illustration above. The situation has been changed. Jawans are no
more just so called soldier. Besides
fighting for the country they have learnt to nurture their own family. So, they are now able to raise their voice
after retirement. In this digital era we can imagine that the information of
such discrimination/disparity easily spreads to the serving soldiers of the
three services. The bureaucratic, dictatorship, dominated ruling is over.
Hundreds of cases regarding pay fixation has been placed in the Central
Administrative Tribunal and higher Judicial systems of the country. It is notable that the pay of officers reached
at so high stage before retirement due to getting several promotions ( 3 Time
Bar (guaranteed) promotion within 13 years of service in Pay Band -IV, and one
time scale promotion within 20 years of service) and retirement age is more
than 55 years, inspite of deduction of a portion of pension, their initial pay
is always fixed at much higher stage, as a result they are always benefited
whereas the PBOR are always deprived &
neglected.
The
Personnel Below Officer Rank (PBOR) of the Indian Armed Forces mostly retired
on superannuation after completion of 17- 20 years of service at an average age
of 40 years in the rank of Havilder or Sepoy/Nk
and equivalent rank of Navy/Air Force.
Scope of resettlement in the Govt sector is too less whereas requirement
is too much. Only 3% veterans get
Govt job against the 5% Ex-serviceman quota reserved for Gp C
& D posts only. The eligible,
qualified and experienced Ex-serviceman recruited mostly in the Group
D/MTS/LDC/equivalent posts in the Central Govt in Pay Band –I (Rs 5200-20200)
with grade pay of Rs 1800/1900. The
initial gross pay/entry pay including DA and other allowances as on date is
appeared to be less than Rs 17000/-pm.
Pension sanctioned including DR at an average is now Rs 10,000/-
pm. The total monthly income after 20
years of service is Rs 27,000/- pm.
Whereas a central govt servant with similar profile and 20 years of
service is drawing his salary not less than Rs 50,000/- pm. Even a newly recruited LDC in any govt office
with only 7 years of service is drawing
Rs 30,000/-pm.
8. Service rendered by an Ex-serviceman
never can be compared with the fresher, as veterans have wide experience of
versatile nature of work, highly motivated, disciplined and trained for prompt
actions with demand of situation and it has been proved in the PSU/Banks that
the productivity/efficiency of the ESM category of manpower is almost 95% more
than the fresher and they have honoured their efficiency/service
experience in the form of allowing the
pay fixation/ protection of last pay drawn. According to the requirement of the
stages of life the minimum supported wages to the reemployed veteran who
sacrificed their youthfulness in the sake of the nation must be considered by
the competent authority. This is not a
mercy to the veteran, they deserve it and it is the right of the veterans who
were separated from family and relatives for a long, posted in the field/CI
Ops/Hazard area and dedicate their lives to serving their country to protecting
the people of India. Soldiers paid the
ultimate sacrifice for their country. Orders of the Commanding officer are the
last word for them. Soldier never thought on the battle field that it is
dangerous, he might get wounded, he might even die | Had they died, it would be because they laid
down their lives for their country. They
chose to obey without regard for the cost.
The living veteran may not have a grave marker as a memorial, but they
nevertheless gave much for our country. The memories linger. The competent authority should consider the
facts and issue necessary instructions to facilitate the benefit of pay
fixation to ex-serviceman (PBOR) on reemployment at the same stage as the last
pay drawn before their retirement.
9. After all it is a matter of shame in the realistic
view. Quoting the same authority /Govt orders
issued by DOP&T the PSU organizations and Banks have facilitate the pay
fixation to the ex-servicemen (PBOR) to fix the pay at the same stage as last
pay drawn before retirement but the department/ministries under central Govt. are
still not agreed to provide the entitlements to the reemployed ex-soldiers due
to ambiguous provisions. The rules and
orders regarding pay fixation has been formulated to give benefit only to the
Elite Class ( Gp A Officers/Commissioned Officers) only whereas the ex servicemen
(PBOR) gets a big zero.
REMEDIAL ACTION REQUIRED TO BE TAKEN
10. In view of the above it is requested
that, your good Ministry should workout the actual disparity arises out of the
incomplete and discriminatory orders issued by the DOP&T vide CCS (Fixation
of pay of reemployed pensioners) Order 1986 (amended from time to time) and
issue necessary amendment in favour of the Ex Servicemen (PBOR) category as
mentioned below :-
For :-
Para 4(b)(i)
where the pension
is fully ignored, the initial pay on re-employed
shall be fixed as per entry pay in the revised pay structure of
the re-employed post applicable in the case of direct recruits appointed
on or after 1.1.2006 as notified vide Section II, Part A of First Schedule
to CCS (RP) Rules, 2008.
Read :-
Para 4(b)(i)
where the pension
is fully ignored, the initial pay on re-employed
shall be fixed as per entry pay in the revised pay structure of
the re-employed post applicable in the case of direct recruits appointed
on or after 1.1.2006 as notified vide Section II, Part A of First Schedule
to CCS (RP) Rules, 2008. In cases where it is felt
that fixation of pay of reemployed ex-servicemen at the minimum of pay scale
will cause undue hardship the pay may be fixed at a higher stage by allowing advance
increments until his pay reached at the same stage as last pay drawn before retirement.
In other words, If the amount of pay in reemployed post is less than the last
pay drawn before retirement from previous service, it will be treated as undue
hardship. Pension of the reemployed Ex-servicemen PBOR/personnel below Gp A
Officer of civil side is fully ignored for the purpose of pay fixation.
CONCLUSION
11. Once again it is requested that the orders
should be issued with free from any ambiguity, clearly mentioning the
feasibility of fixation of pay of the reemployed ex-servicemen belongs to below
officer rank at the same stage as the last pay drawn before retirement with
ignoring entire portion of pension. The
reemployed ex-servicemen (PBOR) should also be entitled to draw pension/PEG
separately. Thousands of reemployed
soldiers suffering from acute financial hardship due to very low earning even
after re-employed with Central Civil Services. They would get relief with the
right approach and a patriotic initiative if taken at your end.
Station :
Kolkata (West Bengal)
Date
: 24 June
2016 (Bikash
De)
Secretary
KREWA
20 June 2016
HAPPY NEWS FOR EX SERVICEMEN : OFK KHAMARIA ISSUED FORDER FOR PAY FIXATION OF REEMPLOYED EXSERVICEMEN
24 March 2016
Clarification on pay fixation
CENTRAL CIVIL SERVICES (FIXATION OF PAY OF RE-EMPLOYED PENSIONERS) ORDERS, 1986.
(1).Para 2. APPLICATION:
Save as others wise provided in these orders these orders shall apply to all persons who are reemployed in Civil Services and posts in connection with the affairs of the Union Government after retirement on pension gratuity and / or Contributory Provident Fund benefits from the service of Union Government including Railways, Defence and posts and telegraphers State Governments and Union Territory Administrations and Public Sectors Undertaking Local Bodies Autonomous Bodies like Universities or Semi Government organizations like Posts and telegraphers.
******The pay fixation is granted to employees of Railways, EPFO, LIC, PSUs, Banks, postal and state departments. How DOPT have two sets of interpretations? It is clear violation of article 14 (Right of Equality) of constitution. *******
(2).Para 3 (2).PRE-RETIREMENT PAY: means the substantive pay last drawn before retirement.
(ix) In the case of retired Defence Services Personnel of the rank of JCO, NCO, or OR in the Army and corresponding ranks in the Navy or Air Force, the items of emoluments mentioned below shall constitute pre-retirement pay.
ARMY (JCO, NCO or OR)
AIR FORCE
Basic Pay, Good Service/Good conduct pay, air proficiency pays badge pay
War service increments, classification pay, deferred pay.
****MSP and Grade pay***** (added vide DOPT OM 3/19/2009 Estt (pay II) dated 08/11/2010. Grade pay concept introduced in 6thCPC.
(3). ANNEXURE I: whereas in accordance with the orders contained in the Ministry of Finance Office Memorandum No. 8(34) Estt.III/57 dated the 25th Nov, 1958. As modified up to date, the initial pay or re-employment plus the gross amount of pension and/or the pension equivalent of other forms of retirement benefits shall not exceed
The pay he draw before his retirement (pre-retirement pay) or
Rs.3500 whichever is less.(*****changed to Rs.80,000/-)
***Pension/PEG and retirement benefits are ignored by 1986 OM issued by DOPT. So Gross pension need not to be added in initial pay fixed to find out hardship*****
***1964 Finance ministry OM clearly states that pre-retirement pay is to be taken into account for initial pay fixation.
****DOPT OM 3/19/2009 dated 08/11/2010 states that MSP to be included in pre-retirement pay of re-employed PBOR for initial pay fixation*****
(4). Para 4 (d) (i) : In the case of persons retiring before attaining the age of 55 years and who are re-employed, pension (including pension equivalent of gratuity and other forms of retirement benefits) shall be ignored for initial pay fixation to the following extent:
In the case of ex-serviceman who held posts below commissioned officer rank in the Defence Forces and in the case of Civilians who held posts below Group ‘A’ posts at the time of their retirement, the entire pension and pension equivalent of retirement benefits shall be ignored.
In the case of service officers belonging to the Defence Forces and Civilian Pensioners who held Group ‘A’ posts at the time of their retirement, the first Rs.500/- of the pension and pension equivalent of retirement benefits shall be ignored.
*****Ignorable amount for officers is changed from Rs.500/- to Rs. 4000/-.
*****Entire amount of Pension/PEG and retirement benefits is ignored for PBOR who retired before 55 years of age. *****
****Initial pay of PBOR is to be fixed as per pre retirement pay Para 3(2)(ix) of 1986 OM of DOPT.
No. 3/19/2009 Estt. Pay II Ministry of Personnel, Public Grievances & Pensions Department of Personnel & Training, New Delhi,
8th November 2010
Office Memorandum
(5). Subject: Fixation of pay of re-employed pensioners -Treatment of Military service Pay
In the instructions issued by the Ministry of Defence vide their letter No. 1/69/2008/D (Pay/Service) dated 24th July 2009, Pre-retirement pay has been defined as under:
In respect of re-employment taking place on/or after 1.1.2006 pre-retirement pay for those who retired after 1.1.2006 means the pay in the pay band plus grade pay but inclusive of Non-Practicing Allowance (NPA) if any, last drawn before retirement.
Post -2006 retirees, the MSP is not reckoned in the pre-retirement pay for the purposes of pay fixation on re-employment. However, for pension purposes the reckonable emoluments are – basic pay + grade pay + MSP + NPA wherever admissible. Therefore, while MSP is not taken into consideration for the purposes of pay fixation on re-employment, the element of MSP in pension is deducted.
Hence, In respect of all those Defence officers/personnel, whose pension contains an element of MSP that need not be deducted from the pay fixed on re-employment?
*****who are those lucky ex-servicemen for whom DOPT is directing, MSP to be included in pre-retirement pay for the purpose of fixation of initial pay on re-employment?***********
No. 3/19/2009 Estt. (Pay II)
Government of India Ministry of Personnel, Public Grievances & Pensions Department of Personnel & Training, New Delhi,
Dated: 05th April, 2010
(6) Para 3 (v): Fixation of pay of personnel/officers who retired prior to 1.1.2006 and who have been re-employed after 1.1.2006:
In the case of personnel/officers who had retired prior to 1.1.2006 and who have been re-employed after 1.1.2006, their pay on re-employment will be fixed by notionally arriving at their revised basic pay at the time of retirement as if they had retired under the revised pay structure. This will be done with reference to the fitment table of the Defence Service Rank/Civilian service post (as the case may be) from which they had retired and the stage of basic pay at the time of their retirement. Their basic pay on re-employment will be fixed at the same stage as the notional last basic pay before retirement so arrived at. However, they shall be granted the grade pay of the re-employed post. The maximum basic pay cannot exceed the grade pay of the re-employed post plus pay in the pay band of Rs.67000 i.e. the maximum of the pay band PB-4. In all these cases, the non-ignorable part of the pension shall be reduced from the pay so fixed.
(7). Para 4(b) (i): In all cases where the pension is fully ignored, the initial pay on re-employment shall be fixed as per entry pay in the revised pay structure of the reemployed post applicable in the case of direct recruits appointed on or after 1.1.2006 as notified vide Section II, Part A of First Schedule to CCS (RP) Rules, 2008.
Clarification 1: Letter issued by MOD (finance),CGDA dated 15/02/93 justifying pay fixation of EXSM under 4(b) (i) as per last pre-retirement pay.
Clarification2: Initial pay on re-employment shall be fixed as per entry pay in the revised pay structure of the re-employed post applicable in the case of direct recruits appointed on or after 1.1.2006 does not imply that on re-employment pay will be fixed at entry pay only. Please read carefully,”Initial pay on re-employment shall be fixed as per entry pay (not on entry pay) i.e. entry pay should be taken into account while fixing the initial pay of PBOR. It should not be at the stage lower than entry pay.
(8).FIXATION OF PAY ACCORDING TO RULE 7 CCS (RP) Rules 2008
The procedure of initial pay fixation has been completely changed after VI CPC has come to force wef 01/1/2006. The DOPT has issued guidelines for initial pay fixation of re-employed pensioners including retired from armed forces of Indian Union vide OM No.3/13/2008-Estt. (Pay II) dated 11th November, 2008. The OM clearly directs without any doubt that the initial pay of all re-employed pensioners should be fixed according to the provisions of Rule 7 of CCS (RP) Rules 2008.
Rule 7 of CCS (RP) Rules 2008 provides that the initial pay of central govt employees should be fixed in respect of their substantive pay. Which means the initial pay of re-employed ex-servicemen should be fixed at the same stage of pay (substantive pay) last drawn by them before retirement from military service.
Here a doubt arises, when we read the para 4 (b) (i) of DOPT OM dtd 05/4/2010 which says, in cases where entire pension is ignored, initial pay should be fixed as per entry pay of the re-employed post as in the case of direct recruits employed wef 01/1/2006. Here the line “pay shall be fixed as per entry pay of the re-employed post” implies the pay scale/structure of the re-employed post to be considered while initial pay fixation and not the minimum pay at which pay is to be fixed.
Taking this para as an excuse, central govt depts fix the initial pay at the minimum of the re-employed post. Which totally wrong since such pay fixation falls under Rule 8 of CCS (RP) Rules 2008. Whereas DOPT OM dtd 11/11/2008 clearly directs to fix the initial pay according to the provisions of Rule 7 of CCS (RP) Rules 2008. Hence correct procedure to be adopted while initial pay fixation of re-employed ex-servicemen is that, the initial pay should be fixed as per entry pay of the re-employed post but Rule 7 of CCS (RP) Rules 2008 should be applied as provded vide Para 2 (i) of the DOPT OM dtd 11/11/2008. Hope all understood the conclusion. i.e. Without any doubt all re-employed ex-servicemen in civil central govt departments are eligible to get their last pay drawn(substantive pay) fixed while initial pay fixation but in the pay scale/structure of re-employed post
(9) Pay fixation on the basis of Hardship/Advance increment. Supreme Court verdict of B. Ravindra Vs DG post ( 1996) and Finance ministry’s OM of 1958.
Supreme Court in its judgment dated 08/11/96 Director General of Post Vs. B.Ravindran and ors has given reference of Finance Ministry’s OM dated 25/11/1958,1964,1978,1983 and 1985. On 25/11/58 the Government of India took a policy decision in the matter of procedure to be adopted in fixing the pay of pensioners re-employed in central Civil Dept. “The initial pay on re-employement should be fixed at the minimum stage of the scale prescribed for the post in which an individual is re-employed. In cases where it is felt that the fixation of initial pay of the re-employed official at the minimum of the prescribed scale will cause undue Hardship, the pay may be fixed at a higher stage by allowing one increment for each year of service which the officer has rendered before retirement.
The intention behind the orders issued by Finance Ministry was to give some more benefits to the re-employed pensioner. The effect of the benefit was to be given at a stage prior to the consideration of hardship. The ignorable part of the pension was to be ignored while totaling up initial pay plus gross pension in order to find out whether retired pensioners thereby was likely to get more or less what he was getting at the time of retirement( pre-retirement pay).
It appears that the effect of making the entire pension ignorable in certain cases was examined by DOPT in consultation with finance ministry. It was decided to issue the following clarification with respect to the mode of fixation of re-employed pensioners:-
When a re-employed pensioners asks for re-fixation of pay under 1983 orders, his pay has to be fixed at the minimum of the scale. The question of granting him advance increment arises only if there is hardship. Hardship is seen from the point( whether pay plus pension plus PEG whether ignorable or not ) is less than the last pay drawn at the time of retirement. If there is no Hardship no advance increment can be granted.
PCDA Allahabad circular 166 and 179 dated 07/03/2013 and 12/05/2015 and defence minister/Finance minister Sh. Arun Jaitley reply in Rajya Sabha dated 12/08/2014” If the pay of re-employed pensioners who held post below the ranks of commissioned officer (PBOR) at the time of their retirement before attaining the age of 55 years, is fixed at a higher stage because of advance increment and no protection of the last pay drawn is being given the pay is treated as fixed at a minimum of the pay scale for the purpose of ignoring the entire pension and allowing Dearness relief on pension.
Prepared by : Ehsan, Kanpur
(1).Para 2. APPLICATION:
Save as others wise provided in these orders these orders shall apply to all persons who are reemployed in Civil Services and posts in connection with the affairs of the Union Government after retirement on pension gratuity and / or Contributory Provident Fund benefits from the service of Union Government including Railways, Defence and posts and telegraphers State Governments and Union Territory Administrations and Public Sectors Undertaking Local Bodies Autonomous Bodies like Universities or Semi Government organizations like Posts and telegraphers.
******The pay fixation is granted to employees of Railways, EPFO, LIC, PSUs, Banks, postal and state departments. How DOPT have two sets of interpretations? It is clear violation of article 14 (Right of Equality) of constitution. *******
(2).Para 3 (2).PRE-RETIREMENT PAY: means the substantive pay last drawn before retirement.
(ix) In the case of retired Defence Services Personnel of the rank of JCO, NCO, or OR in the Army and corresponding ranks in the Navy or Air Force, the items of emoluments mentioned below shall constitute pre-retirement pay.
ARMY (JCO, NCO or OR)
AIR FORCE
Basic Pay, Good Service/Good conduct pay, air proficiency pays badge pay
War service increments, classification pay, deferred pay.
****MSP and Grade pay***** (added vide DOPT OM 3/19/2009 Estt (pay II) dated 08/11/2010. Grade pay concept introduced in 6thCPC.
(3). ANNEXURE I: whereas in accordance with the orders contained in the Ministry of Finance Office Memorandum No. 8(34) Estt.III/57 dated the 25th Nov, 1958. As modified up to date, the initial pay or re-employment plus the gross amount of pension and/or the pension equivalent of other forms of retirement benefits shall not exceed
The pay he draw before his retirement (pre-retirement pay) or
Rs.3500 whichever is less.(*****changed to Rs.80,000/-)
***Pension/PEG and retirement benefits are ignored by 1986 OM issued by DOPT. So Gross pension need not to be added in initial pay fixed to find out hardship*****
***1964 Finance ministry OM clearly states that pre-retirement pay is to be taken into account for initial pay fixation.
****DOPT OM 3/19/2009 dated 08/11/2010 states that MSP to be included in pre-retirement pay of re-employed PBOR for initial pay fixation*****
(4). Para 4 (d) (i) : In the case of persons retiring before attaining the age of 55 years and who are re-employed, pension (including pension equivalent of gratuity and other forms of retirement benefits) shall be ignored for initial pay fixation to the following extent:
In the case of ex-serviceman who held posts below commissioned officer rank in the Defence Forces and in the case of Civilians who held posts below Group ‘A’ posts at the time of their retirement, the entire pension and pension equivalent of retirement benefits shall be ignored.
In the case of service officers belonging to the Defence Forces and Civilian Pensioners who held Group ‘A’ posts at the time of their retirement, the first Rs.500/- of the pension and pension equivalent of retirement benefits shall be ignored.
*****Ignorable amount for officers is changed from Rs.500/- to Rs. 4000/-.
*****Entire amount of Pension/PEG and retirement benefits is ignored for PBOR who retired before 55 years of age. *****
****Initial pay of PBOR is to be fixed as per pre retirement pay Para 3(2)(ix) of 1986 OM of DOPT.
No. 3/19/2009 Estt. Pay II Ministry of Personnel, Public Grievances & Pensions Department of Personnel & Training, New Delhi,
8th November 2010
Office Memorandum
(5). Subject: Fixation of pay of re-employed pensioners -Treatment of Military service Pay
In the instructions issued by the Ministry of Defence vide their letter No. 1/69/2008/D (Pay/Service) dated 24th July 2009, Pre-retirement pay has been defined as under:
In respect of re-employment taking place on/or after 1.1.2006 pre-retirement pay for those who retired after 1.1.2006 means the pay in the pay band plus grade pay but inclusive of Non-Practicing Allowance (NPA) if any, last drawn before retirement.
Post -2006 retirees, the MSP is not reckoned in the pre-retirement pay for the purposes of pay fixation on re-employment. However, for pension purposes the reckonable emoluments are – basic pay + grade pay + MSP + NPA wherever admissible. Therefore, while MSP is not taken into consideration for the purposes of pay fixation on re-employment, the element of MSP in pension is deducted.
Hence, In respect of all those Defence officers/personnel, whose pension contains an element of MSP that need not be deducted from the pay fixed on re-employment?
*****who are those lucky ex-servicemen for whom DOPT is directing, MSP to be included in pre-retirement pay for the purpose of fixation of initial pay on re-employment?***********
No. 3/19/2009 Estt. (Pay II)
Government of India Ministry of Personnel, Public Grievances & Pensions Department of Personnel & Training, New Delhi,
Dated: 05th April, 2010
(6) Para 3 (v): Fixation of pay of personnel/officers who retired prior to 1.1.2006 and who have been re-employed after 1.1.2006:
In the case of personnel/officers who had retired prior to 1.1.2006 and who have been re-employed after 1.1.2006, their pay on re-employment will be fixed by notionally arriving at their revised basic pay at the time of retirement as if they had retired under the revised pay structure. This will be done with reference to the fitment table of the Defence Service Rank/Civilian service post (as the case may be) from which they had retired and the stage of basic pay at the time of their retirement. Their basic pay on re-employment will be fixed at the same stage as the notional last basic pay before retirement so arrived at. However, they shall be granted the grade pay of the re-employed post. The maximum basic pay cannot exceed the grade pay of the re-employed post plus pay in the pay band of Rs.67000 i.e. the maximum of the pay band PB-4. In all these cases, the non-ignorable part of the pension shall be reduced from the pay so fixed.
(7). Para 4(b) (i): In all cases where the pension is fully ignored, the initial pay on re-employment shall be fixed as per entry pay in the revised pay structure of the reemployed post applicable in the case of direct recruits appointed on or after 1.1.2006 as notified vide Section II, Part A of First Schedule to CCS (RP) Rules, 2008.
Clarification 1: Letter issued by MOD (finance),CGDA dated 15/02/93 justifying pay fixation of EXSM under 4(b) (i) as per last pre-retirement pay.
Clarification2: Initial pay on re-employment shall be fixed as per entry pay in the revised pay structure of the re-employed post applicable in the case of direct recruits appointed on or after 1.1.2006 does not imply that on re-employment pay will be fixed at entry pay only. Please read carefully,”Initial pay on re-employment shall be fixed as per entry pay (not on entry pay) i.e. entry pay should be taken into account while fixing the initial pay of PBOR. It should not be at the stage lower than entry pay.
(8).FIXATION OF PAY ACCORDING TO RULE 7 CCS (RP) Rules 2008
The procedure of initial pay fixation has been completely changed after VI CPC has come to force wef 01/1/2006. The DOPT has issued guidelines for initial pay fixation of re-employed pensioners including retired from armed forces of Indian Union vide OM No.3/13/2008-Estt. (Pay II) dated 11th November, 2008. The OM clearly directs without any doubt that the initial pay of all re-employed pensioners should be fixed according to the provisions of Rule 7 of CCS (RP) Rules 2008.
Rule 7 of CCS (RP) Rules 2008 provides that the initial pay of central govt employees should be fixed in respect of their substantive pay. Which means the initial pay of re-employed ex-servicemen should be fixed at the same stage of pay (substantive pay) last drawn by them before retirement from military service.
Here a doubt arises, when we read the para 4 (b) (i) of DOPT OM dtd 05/4/2010 which says, in cases where entire pension is ignored, initial pay should be fixed as per entry pay of the re-employed post as in the case of direct recruits employed wef 01/1/2006. Here the line “pay shall be fixed as per entry pay of the re-employed post” implies the pay scale/structure of the re-employed post to be considered while initial pay fixation and not the minimum pay at which pay is to be fixed.
Taking this para as an excuse, central govt depts fix the initial pay at the minimum of the re-employed post. Which totally wrong since such pay fixation falls under Rule 8 of CCS (RP) Rules 2008. Whereas DOPT OM dtd 11/11/2008 clearly directs to fix the initial pay according to the provisions of Rule 7 of CCS (RP) Rules 2008. Hence correct procedure to be adopted while initial pay fixation of re-employed ex-servicemen is that, the initial pay should be fixed as per entry pay of the re-employed post but Rule 7 of CCS (RP) Rules 2008 should be applied as provded vide Para 2 (i) of the DOPT OM dtd 11/11/2008. Hope all understood the conclusion. i.e. Without any doubt all re-employed ex-servicemen in civil central govt departments are eligible to get their last pay drawn(substantive pay) fixed while initial pay fixation but in the pay scale/structure of re-employed post
(9) Pay fixation on the basis of Hardship/Advance increment. Supreme Court verdict of B. Ravindra Vs DG post ( 1996) and Finance ministry’s OM of 1958.
Supreme Court in its judgment dated 08/11/96 Director General of Post Vs. B.Ravindran and ors has given reference of Finance Ministry’s OM dated 25/11/1958,1964,1978,1983 and 1985. On 25/11/58 the Government of India took a policy decision in the matter of procedure to be adopted in fixing the pay of pensioners re-employed in central Civil Dept. “The initial pay on re-employement should be fixed at the minimum stage of the scale prescribed for the post in which an individual is re-employed. In cases where it is felt that the fixation of initial pay of the re-employed official at the minimum of the prescribed scale will cause undue Hardship, the pay may be fixed at a higher stage by allowing one increment for each year of service which the officer has rendered before retirement.
The intention behind the orders issued by Finance Ministry was to give some more benefits to the re-employed pensioner. The effect of the benefit was to be given at a stage prior to the consideration of hardship. The ignorable part of the pension was to be ignored while totaling up initial pay plus gross pension in order to find out whether retired pensioners thereby was likely to get more or less what he was getting at the time of retirement( pre-retirement pay).
It appears that the effect of making the entire pension ignorable in certain cases was examined by DOPT in consultation with finance ministry. It was decided to issue the following clarification with respect to the mode of fixation of re-employed pensioners:-
When a re-employed pensioners asks for re-fixation of pay under 1983 orders, his pay has to be fixed at the minimum of the scale. The question of granting him advance increment arises only if there is hardship. Hardship is seen from the point( whether pay plus pension plus PEG whether ignorable or not ) is less than the last pay drawn at the time of retirement. If there is no Hardship no advance increment can be granted.
PCDA Allahabad circular 166 and 179 dated 07/03/2013 and 12/05/2015 and defence minister/Finance minister Sh. Arun Jaitley reply in Rajya Sabha dated 12/08/2014” If the pay of re-employed pensioners who held post below the ranks of commissioned officer (PBOR) at the time of their retirement before attaining the age of 55 years, is fixed at a higher stage because of advance increment and no protection of the last pay drawn is being given the pay is treated as fixed at a minimum of the pay scale for the purpose of ignoring the entire pension and allowing Dearness relief on pension.
Prepared by : Ehsan, Kanpur
22 March 2016
CPMG DELHI CIRCLE ALLOWED THEIR REEMPLOYED ESM TO GET THE PAY FIXED AS LAST PAY DRAWN
Several orders/office memorandum are there to regulate the pay of reemployed pensioner/exservicemen but the controlling administrative authority is misleading the employer department as a result we are being deprived. Two employees of O/o The CPMG, national capital city are drawing their pay as last pay drawn before retirement from the armed forces. their pay particulars are mentioned below :
Present post held by both the reemployed Esm : PA 7500/- + GP - 2400 = Rs 9900/-
Employee - I
Present pay in the post of PA = 16480 + GP 2400 = Rs 18880/-
Employee-II
Present pay in the post of PA = 14810 + GP 2400 = Rs 17210/-
The above pay particulars of the December 2015 received from the concerned office. Audit of the pay has already been completed and no objection raised by the AO. So, we may expect for the good. Our approach to the government authority should be positive and still we are in the right way. We should keep win win strategy. On behalf of the Association I assure you that we must win the battle. Thank you.
Present post held by both the reemployed Esm : PA 7500/- + GP - 2400 = Rs 9900/-
Employee - I
Present pay in the post of PA = 16480 + GP 2400 = Rs 18880/-
Employee-II
Present pay in the post of PA = 14810 + GP 2400 = Rs 17210/-
The above pay particulars of the December 2015 received from the concerned office. Audit of the pay has already been completed and no objection raised by the AO. So, we may expect for the good. Our approach to the government authority should be positive and still we are in the right way. We should keep win win strategy. On behalf of the Association I assure you that we must win the battle. Thank you.
14 March 2016
INCOME TAX EXEMPTION OF DISABILITY PENSION : DISABILITY AND SERVICE ELEMENT
F. No. 200/51/00-ITA-1 dt. 02.7.2001 from Ministry of Finance Deptt. Of
Revenue Central Board of Direct Taxes, New Delhi.]
Subject: Exemption from income tax to disability pension, i.e. ”
disability element” and “service element” of disabled officer of the
Indian Armed Forces- Instructions regarding.
Reference have been received in the Board regarding exemption from income
tax to disability pension, i.e. “disability element” and “service element”
of a disabled officer of the Indian Armed Forces.
2. It appears that field formations in certain cases are not uniformly
allowing disability, pension in spite of Board’s Instruction No.136 dated
14th January, 1970 (F.No.34/3/68-IT(A.1)).
3. The matter has been re-examined in the Board and i*t has been decided to
reiterate that the entire disability pension, i.e. ” disability element”
and “service element” of a disabled officer of the Indian Armed Forcescontinues to be exempt from income tax.*
4. This may be bought to the notice of all the officers working under you.
Sd/-
B.L. Sahu
Officer on Special Duty (ITA .1)
*Press Release, dated 20-12-2007*
It has been reported in the press that some banks were deducting tax from
pension of disabled exservicemen in violation of Government instructions.
RBI was requested to have the matter investigated and remedial action
taken. After examination, RBI discovered that in one specific instance, due
to oversight, the pensioner’s disability pension was wrongly taken into
account while calculating income-tax. RBI has issued instructions to all
agency banks to strictly adhere to the provisions of para 88.3 of Defence
Pension Payment Instructions, 2005, regarding exemption of income-tax of
the disability pension of the pensioners of Armed Forces. Banks have been
advised to issue suitable instructions to all their pension disbursing
branches that income-tax should not be deducted from the disability pension
Revenue Central Board of Direct Taxes, New Delhi.]
Subject: Exemption from income tax to disability pension, i.e. ”
disability element” and “service element” of disabled officer of the
Indian Armed Forces- Instructions regarding.
Reference have been received in the Board regarding exemption from income
tax to disability pension, i.e. “disability element” and “service element”
of a disabled officer of the Indian Armed Forces.
2. It appears that field formations in certain cases are not uniformly
allowing disability, pension in spite of Board’s Instruction No.136 dated
14th January, 1970 (F.No.34/3/68-IT(A.1)).
3. The matter has been re-examined in the Board and i*t has been decided to
reiterate that the entire disability pension, i.e. ” disability element”
and “service element” of a disabled officer of the Indian Armed Forcescontinues to be exempt from income tax.*
4. This may be bought to the notice of all the officers working under you.
Sd/-
B.L. Sahu
Officer on Special Duty (ITA .1)
*Press Release, dated 20-12-2007*
It has been reported in the press that some banks were deducting tax from
pension of disabled exservicemen in violation of Government instructions.
RBI was requested to have the matter investigated and remedial action
taken. After examination, RBI discovered that in one specific instance, due
to oversight, the pensioner’s disability pension was wrongly taken into
account while calculating income-tax. RBI has issued instructions to all
agency banks to strictly adhere to the provisions of para 88.3 of Defence
Pension Payment Instructions, 2005, regarding exemption of income-tax of
the disability pension of the pensioners of Armed Forces. Banks have been
advised to issue suitable instructions to all their pension disbursing
branches that income-tax should not be deducted from the disability pension
CLARIFICATION REGARDING PAY FIXATION
CLARIFICATION REGARDING PAY FIXATION
Q-Is the Hon’Supreme court Judgement of 2013, civil appeal no 9873/2013, U.T. Chandigarh Vs Gurucharan Singh applicable to all Re-employed ?
Ans-(i)Ref. to CCS RP Rule 2008, page 01,Sl-2-2(i) , judgment is for employee of U.T Chandigarh who doesnot come under the preview of CCS Rule- and hence can not be applicable to the other re-employed ESM.
(ii) Ref to CS Rule 1986 Para 16,page 9,and Min of Finance (Dept of Expenditure) O.M F-6(8)/E-III/63 dated 11/04/1963 separate provision exists for fixation of pay for ex-Combatent Clerks and Store Keepers.
In view of the above The above Judgment can not be imposed for all Re-employed ESM. And instead the Ref to Hon Supreme Court Judgement of 8 Nov 1996 in the case of DG Post Vs B Ravindran can be refered for those retired before the age of 55.
Q-Can the Amount paid to Re-employed EXSM be recovered by the departments?
Ans-Ref to DOPT OM F.No.18/03/2015-Estt. (Pay-I) dated 2nd March, 2016, para 4, the excess paid if any to GP C,D employees can not be recovered if the employee is facing hardship.
Q- When a Re-employed ESM will be considered for undue hardship.
As per the provision the re-employed ESM will be considered for undue hard ship iff The Present Pay +Non Ignourable Part of Pension(i.e pension and pensionary benefits) is less than the substansive pay(i.e last Pay drawm). As per existing orders the part Non Ignourable Part of Pension(i.e pension and pensionary benefits) is ignored for those retired before the age of 55 .
Hence the re-employed ESM will be considered for undue hard ship iff The Present Pay is less than the substansive pay(i.e last Pay drawm).-Ref to Hon Supreme Court Judgement of 8 Nov 1996 in the case of DG Post Vs B Ravindran.
Courtesy : Kedar Satapathy,
Ex- Indian Naval Petty Officer
Postal Assistant
Berhampur Head Post Office(760001)
Berhampur Head Post Office(760001)
Subscribe to:
Posts (Atom)