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Thursday, 8 September 2016

7th CPC IMPLEMENTATION RESOLUTION



(TO BE PUBLISHED IN PART-I SECTION 3 OF THE GAZETTE OF INDIA EXTRAORDINARY)

GOVERNMENT OF INDIA
MINISTRY OF DEFENCE

New Delhi, the 5th September, 2016

RESOLUTION

No. 02 (E)      
No. 1(6)/2016/D (Pay/Services)

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 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 Matrices for both Defence and Military Nursing Services personnel.

(b)        Fixation of pay of each employee is 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.

(c)        General recommendations on pay recommended by the Commission have been accepted with the following exceptions in the Defence Pay Matrix, namely:

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

ii.         Additional 3 stages in Level 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 would be two dates for grant of increments viz, 1st January and 1st July of every year, instead of existing date of 1st July. However, an employ 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, Post 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 as existing rates in existing pay structure, as if pay had not ben 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 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 for Personnel Below Officer Rank (PBOR) is at Annexure –II. 

Sd/-------------------------
(V Anandarajan)
Joint Secretary to the Government of India

ORDER

Ordered that the Resolution be Published in the Gazette of India Extraordinary.

Ordered also that a copy of the Resolution be communicated to: - 

1.         Army Headquarters.
2.         Naval Headquarters.  
3.         Air Force Headquarters.
4.         Pay Commission Cells of Army, Navy, and Air Force.
5.         Controller General of Defence Accounts and all CDAs.
Sd/-----------------
(V Anandarajan)
Joint Secretary to the Government of India


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 PERTAIN 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 recommended fitment in the pay band in the following manner: -
“The fitment in the new pay matrix is essentially a multiple factor of 2.57. The multiple is the ratio of the new minimum pay arrived at by the Commission and the existing minimum pay. The fitment factor is being applied 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 on 01.01.2016. The actual raise/fitment being recommended by the Commission is 14.29 percent. An identical fitment of 2.57 has also been applied to the existing rates of Military Service Pay (MSP) applicable to Defence forces personnel only.’ (Para 5.2.7)        
Minimum Pay, Fitment Factor, Index of Rationalisation, Pay Matrices 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
Commission recommends an MSP for Defence forces personnel at Rs 5,200 for JCOs/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 will however not be counted for purposes of House Rent  Allowance, 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: The Commission, taking note of the existing framework of Honorary Commission recommends that the Junior Commissioned Officers on their promotion as Honorary Lieutenant or Honorary Captain shall be placed in the pay level 10 and pay level 10B respectively. They will, in addition be paid Military Service Pay of Rs 15, 500 per month on par 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 Security 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 dat of reemployment, in case they do not get a promotion. (Para 6.2.98).  












Accepted.






7
Pay Structure of Non-Combatant (Enrolled): The Commission recommends MSP for Non-Combatants (Enrolled) at the rate of 70 percent of combatants. Accordingly, the Commission recommends an enhancement of MSP for Non-Combatant (Enrolled) in the Air Force from the existing rate of Rs 1,000 per month to Rs 3,600 per month. (Para 6.2.100 & 6.2.101)





Accepted.


Pay Matrix (Defence Forces Personnel – except Military Nursing Service)

[Tables edited for compactness by Aerial View]

Pay Band
5200-20200
9300-34800
15600-39100
Grade Pay
2000
24000
2800
3400
4200
4600
4800
5400
5400
6100
6600
Level
3
4
5
5A
6
7
8
9
10
10B
11
1
21700
25500
29200
33300
35400
44900
47600
53100
56100
61300
69400
2
22400
26300
30100
34300
36500
46200
49000
54700
57800
63100
71500
3
23100
27100
31000
35300
37600
47600
50500
56300
59500
65000
73600
4
23800
27900
31900
36400
38700
49000
52000
58000
61300
67000
75800
5
24500
28700
32900
37500
39900
50500
53600
59700
63100
69000
78100
6
25200
29600
33900
38600
41100
52000
55200
61500
65000
71100
80400
7
26000
30500
34900
39800
42300
53600
56900
63300
67000
73200
82800
8
26800
31400
35900
41000
43600
55200
58600
65200
69000
75400
85300
9
27600
32300
37000
42200
44900
56900
60400
67200
71100
77700
87900
10
28400
33300
38100
43500
46200
58600
62200
69200
73100
80000
90500
11
29300
34300
39200
44800
47600
60400
64100
71300
75400
82400
93200
12
30200
35300
40400
46100
49000
61200
66000
73400
77700
84900
96000
13
31100
36400
41600
47500
50500
64100
68000
75600
80000
87400
98900
14
32000
37500
42800
48900
52000
66000
70000
77900
82400
90000
101900
15
33000
38600
44100
50400
53600
68000
72100
80200
84900
92700
105000
16
34000
39800
45400
51900
55200
70000
74300
82600
87400
95500
108200
17
35000
41000
46800
53500
56900
72100
76500
85100
90000
98400
111400
18
36100
42200
48200
55100
58600
74300
78800
87700
92700
101400
114700
19
37200
43500
49600
56800
60400
76500
81200
90300
95500
104400
118100
20
38300
44800
51100
58500
62200
78800
83600
93000
98400
107500
121600
21
39400
46100
52600
60300
64100
81200
86100
95800
101400
110700
125200
22
40600
47500
54200
62100
66000
83600
88700
98700
104400
114000
129000
23
41800
48900
55800
64000
68000
86100
91400
101700
107500
117400
132900
24
43100
50400
57500
65900
70000
88700
94100
104800
110700
120900
136900

Pay Matrix (Defence Forces Personnel) continued

Pay Band
37400-67000
67000-79000
75500-80000
80000
90000
Grade Pay
8000
8700
8900
10000




Level
12A
13
13A
14
15
16
17
18
1
116700
125700
139600
144200
182200
205400
225000
250000
2
120200
129500
143800
148500
187700
211600


3
123800
133400
148100
153000
193300
217900


4
127500
137400
152500
157600
199100
224100


5
131300
141500
157100
162300
205100



6
135200
145700
161800
167200
211300



7
139300
150100
166700
172200
217600



8
143500
154600
171700
177400
224100



9
147800
159200
176900
182700




10
152200
164000
182200
188200




11
156800
168900
187700
193800




12
161500
174000
193300
199600




13
166300
179200
199150
205600




14
171300
184600
205100
211800




15
176400
190100
211300
218200




16
181700
195800
217600





17
187200
201700






18
192800
207800






19
198600
214000






20
204600







21
210700







22








23








24











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