7th CPC: Revision of Pay and Allowances of retired/released
Armed Forces Officers wef 01.01.2016 on re-employment in Armed Forces -
MoD Order
No.1(14)/2017-D(Pay/Services)
Government of India
Ministry of
Defence
New Delhi, dated the 09-1-2018
To
The Chief of the Army Staff
The Chief of the Naval Staff
The
chief of the Air Staff
Subject:
Pay and allowances of Retired/Released Armed Forces
Officers on re-Employment in the Armed Forces
Sir,
The
pay fixation of re-employed officers on re-employment in Armed forces,
is being done in accordance with this Department's letter
No.1/69/2008/D(Pay/Services) dated 24 July 2009. Officers re-employed in
Defence services after retirement have been excluded from the purview
of the Army/Navy/Air Force Officers Pay Rules/Regulations, 2017 vide
Rule 2 thereof. The question of extension of the benefit of the revised
pay rules to these officers and the procedure to be followed for fixing
their pay in the revised pay structure has been considered by the
Government. The president is pleased to decide that the pay fixation in
respect of the Officers who were in/came into re-employment on or after
1st January,2016 will be done in accordance with the provisions
contained in this order. This order will cover all re-employed officers
on re-employment in Armed Forces.
2. Exercise of Option: Re-employed
officers who become eligible to elect revised pay structure in
accordance with these orders should exercise their option in the manner
laid down in Rule 5 and Rule 6 of the Army/Navy/Air Force Officers Pay
Rules/Regulations, 2017,within one hundred and eighty days from the date
of issue of these orders or in cases where the existing scales of pay
of the posts held by them are revised subsequent to the issue of these
within one hundred and eighty days of the date of such order. This
facility of option is avilable to the re-employed officers who were
re-employed before 1.1.2016 only.
Fixation / drawal of pay of Officers re-employed prior to 01.01.2016
and who were in re-employment as on 01.01.2016:
3.
(a) The initial pay of a re-employed officer who elects or is deemed to
have elected to be governed by the revised structure from the 1st day
of January, 2016 shall be fixed in accordance with the provisions
contained in Rule 7 of the Army/Navy/Air Force Officers Pay Rules/
Regulations, 2017. Revised Pension (excluding the ignorable portion of
pension,if any), as admissible on relevant date of coming over to the
revised pay structure,effective from 1.1.2016 or later, shall be
deducted from his/her pay in accordance with the general policy of the
Government on fixation and subsequent drawal of pay of re-employed
Officers. Revised Military Service Pay and Dearness Allowance thereon
shall be payable from 1.1.2016.
(b) In addition to the pay so
fixed, the re-employed officer would continue to draw the retirement
benefits he / she was permitted to draw in the pre-revised scales, as
modified based on the recommendations of the Seventh Central Pay
Commission, orders in respect of which have been issued separately by
the Department of Ex-Servicemen Welfare.
(c) In the case of
persons who were already on re-employment as on 01.01.2016, the pay may
be fixed on the basis of these orders, with effect from the date of
coming over to the new pay structure, i.e. 01.01.2016 or later, as per
the option exercised by them in terms of para 2 above. In such cases,
their term would be determined afresh as if they have been re-employed
for the first time from such date of coming over to the new Pay
Structure.
4. Officers Re-employed on or after 01-01-2016
Officers who are re-employed on or after 1-1-2016 shall be allowed to draw
pay only in the revised Pay Structure.
(a) Officers who Retired from pre-revised scales of pay and were
re-employed in the Revised Pay Structure.
The
initial pay shall be fixed in the revised pay structure in accordance
with Rule 7 of Army/Navy/Air Force Officers Pay Rules/Regulation 2017
read with para 5 below, with reference to the rank held at the time of
retirement. Military Service Pay and Dearness Allowance thereon shall be
payable from 1-1-2016. However, an amount equivalent to the revised
pension (excluding the ignorable portion of pension) effective from
1-1-2016 or after shall be deducted from his pay so fixed in accordance
with the general policy of the Govt on fixation of pay of re-employed
officers.
(b) Officers who retired and are re-employed in the Revised Scale of
pay.
The
initial pay in the Level (read with Para 5 below) shall be fixed at the
same cell in the Level as the last pay drawn. Military Service Pay and
Dearness Allowance thereon shall be payable from 1-1-2016. Having fixed
the Pay in the manner indicated, an amount equivalent to the revised
pension (excluding the ignorable portion of pension) effective from
1-1-2016 or after shall be deducted from his pay so fixed in accordance
with the general policy of the Govt on fixation of pay of re-employed
officers.
5.
Pay in the Level. In the case of
retired Armed Forces Officers (a) who were re-employed before 01.01.2016
(b) who retired from pre-revised pay scales and were re-employed on or
after 01.01.2016 in the revised pay structure, and (c) who retired and
are re-employed in the revised pay structure, on their re-employment in
the Armed Forces, the pay of the officers will be fixed by granting them
the pay in the Level of the rank held by them at the time of their
retirement or Level of Colonel (Time Scale)'s pay whichever is lower.
Ignorable part of Pension
6.
The President is also pleased to enhance the ignorable part of pension
from Rs. 4000/- to Rs.15,000/- (Rupees Fifteen Thousand only) in the
case of Commissioned Service Officers who retire before attaining the
age of 55 years. The existing limits of military pensions to be ignored
in fixing the pay of re-employed Officers will therefore, cease to be
applicable to cases of such Officers who are re-employed on or after
1-1-2016. As Brigadiers retire at the age of 56 years they will not be
eligible for ignorable portion of pension.
Drawal of increments
7.
Once the initial pay of the re-employed officer has been fixed in the
manner indicated above, he will be allowed to draw normal increments as
per the provisions of Rule 9 and 10 of Army/ / Air Force/ Navy Officers
Pay Rules/ Regulations, 2017.
8. Further, the existing ceiling of
Rs. 80,000/- for drawal of pay plus gross pension on reemployment is
enhanced to Rs.2,25,000/-, i.e. the pay plus MSP @Rs.15,500/- plus gross
pension should not exceed the ceiling of Rs.2,25,000 pm, the maximum
basic pay prescribed for officers in Level 17 under Army/Navy/Air Force
Officers Pay Rules/Regulations, 2017.
9.
Allowances:
The drawal of various allowances and other benefits in the revised
structure based on pay shall be regulated with reference to pay that is
fixed on re-employment. Pay for these allowances will be the pay fixed
before deducting the pension.
10.
Gratuity/Death cum Retirement Gratuity
- The re-employed officers shall not be eligible for any gratuity/Death
cum Retirement Gratuity for the period of re-employment.
11. Some illustrations to cater for pay fixation in various situations
arising are given in Appendix 'A' to this letter.
12. These Orders shall take effect from 1.1.2016. These Orders supersede the
existing orders on the subject.
13.
An undertaking may be obtained from re-employed officers who opt / are
deemed to have opted for the revised pay structure to the effect that,
they understand and agree that the special dispensation provided through
this order is subject to the condition of deduction of pension as
admissible to them from time to time, where ever required as per extant
instructions and also to recovery in case of over-payment made, if any.
14.
This letter issues with the approval of Department of Personnel &
Training vide their ID Note No. 1279783/2017-Estt.(Pay-II) dated
12.12.2017 and concurrence of Ministry of Defence (Finance) vide their
ID Note No.3(16)/08-AG/389-PA, dated 05-01-2018.
Yours faithfully,
(M. Subbarayan)
Joint Secretary to the Government of India
UNDERTAKING
(To
be given by officers who are on re-employment on or after 01.01.2016
and who have chosen / are deemed to have chosen to be governed by the
Army/ Navy/ Air Force Officers Pay Rules/Regulations, 2017, in terms of
MoD/ D(Pay/Services) order No. ______________ dated ____________ )
I,
_______________________, S/o / W/o / D/o ______________________ ,
hereby undertake that I understand and agree that the special
dispensation of pay fixation under the Army/ Navy/Air Force Officers Pay
Rules/ Regulations, 2017 provided to me through the letter No.
___________________ dated ____________ is subject to the specific
condition of deduction of pension as admissible to me from time to time,
wherever required as per extant instructions and also to recovery in
case of overpayment made, if any.
Signature. ___________________
Name ___________________
Designation___________________
Date:
Place:
Appendix 'A'
ILLUSTRATION - 1
1.
Initial pay fixation in revised scales of a re-emp officer who has
retired in pre-revised scales and re-emp in pre-revised scales prior to
01 Jan 2016. Example of a Col retired on 31 Jul 2015 and re-emp on 01
Aug 2015.
(a) Col Retd on 31 Jul 2015
| (i) | Pay in Pay Band | Rs. 55000/- |
| (ii) | Grade Pay | Rs. 8700/- |
| (iii) | MSP | Rs 6000/- |
| (iv) | DA @ 119% | Rs 82943/- |
| Total | Rs 152643/- |
(b) Fixation of Pay on Date of Re-employment as on 01 Aug
2015
(c) Re-fixation of Pay on 01 Jan 2016 in accordance with Pay Rule /
Regulations
| (i) | Level | - Level 13 |
| (ii) | Revised Pay (63700 x 2.57) | - Rs 163709/-
|
| (iii) | Rounded off to next higher Cell in Level 13 | -
Rs 165400/- |
| (iv) | Revised Military Service Pay | - Rs 15500/-
|
| Total | - Rs 180900 |
(d) Revised Pension
| (i) | Rs 34850 x 2.57 | Rs 89565/- |
(e) Fixation of Pay on Re-employment
| (i) | Pay | Rs 165400/- |
| (ii) | Less Pension - Ignorable limit (89565 - 15000)
| Rs 74565/- |
| (iii) | Net Pay admissible | Rs 90835/- |
(f)
As pay has been fixed on 01 Jan 2016, the re-employed officer will be
entitled for annual increment as per the existing provisions of Army/
Navy/ Air Force Officers Pay Rules/ Regulations 2017. DA will be
admissible as per rates announced from time to time. Revised MSP @ Rs.
15500/- and DA thereon will also be admissible w.e.f. 1-1-2016.
ILLUSTRATION - 2
2.
Initial pay fixation in revised scales of a re-employed officer who has
retired post implementation of 7th CPC and was granted re-employment
post 01 Jan 2016. Example of a Colonel retired on 31 Mar 2016 and
re-employed on 01 Apr 2016.
(a) Col Retd on 31 Mar 2016
| (i) | Pay in Defence Pay Matrix | Rs 165400/- |
| (ii) MSP | Rs 15500/- |
| Total | Rs 180900/- |
(b) Revised Pension - 90450
(c) Fixation of Pay on date of Re-employment as on 01 Apr
2016
| (i) | Pay | Rs 165400/- |
| (ii) | Less Pension - Ignorable limit (90450 - 15000)
| Rs 75450/- |
| (iii) | Net Pay admissible | Rs 89950/- |
(d)
As the pay has been fixed based on the revised pay rules/regulations,
the re-employed officer will be entitled for annual increment as per the
existing provisions of Army/Navy/Air Force Officers Pay
Rules/Regulations 2017. DA will be admissible as per rates announced
from time to time. Revised MSP @ Rs.15500/- and DA thereon will also be
admissible w.e.f. 1-1-2016.
