7th Central Pay Commission and Defence Forces

The 7CPC was constituted against the background of the protracted public protest by ex-servicemen, including by senior officers, that started following the 6th CPC in 2008. These protest highlighted the perceived neglect of the armed forces on matters affecting their pay, pension status, levels, especially in comparison with police officers, and defence civilians, who were granted time bound promotions to the highest ranks, Non Functional Upgrade (NFU), and One Rank, One Pension (OROP) by the UPA Government. To address the dissatisfaction in the armed forces over pay and allowances, the government added an additional term of reference(TOR), not included 5th and 6th Pay Commission, that enjoined the 7th CPC, "to review the principles and structure of emoluments of defence service personnel having regard to the historical and traditional parities". == Pay scale(s) ==

Defence Pay Matrix Sources: Additional Allowance(s) Additional Indian Navy specific allowances Civilian Pay Matrix == Composition of 7CPC ==

The commission consisted of three members, and one member secretary. The 1st CPC (1947) had no member secretary. Since then all pay commissions have had a member secretary, usually from the IAS. Secretariat 7CPC had a secretariat of 18 government officials on deputation from their respective departments to the commission. In addition, the commission hired 16 consultants to advice it on its work. The consultants are not named in the report, and their contribution are not documented. and Rajiv Mishra, 'Advisor' and 'economist'. The first committee was called "The Post War Pay Committee for the Armed Forces". The pensionary benefits were examined by separate committee called " Armed Forces Pension Revision Committee (1949–50)". A similar procedure was followed after the second pay commission by the Raghuramiah Committee(1960), which too had service representatives. AFPRB is composed of experts including always a senior retired armed forces officer, who serves in the body for number of years. The US had a far more evolved system Military Compensation system. Military compensations, by law, is required to be reviewed every four years. According to the basic congressional mandate contained in 37 U.S.C. §1008(b) each Quadrennial Review is required to do "a complete review of the principles and concepts of the compensation system for members of the uniformed services ... in relation to national security objectives" and "in an era typified by rapid technological developments and changing battlefield tactics". == Terms of reference ==

The terms of reference of the commission was: To examine, "the principles that should govern the emoluments structure including pay, allowances and other facilities/benefits, in cash or kind," of civilian employees of the central government (33.02 lakh); and of the Defence forces (13,86,171) The term historical and traditional parities is neither examined or defined by the commission in the report. It is however frequently referred to by the commission, including in justifying its recommendations affecting the armed forces. See for instance, the commissions justifications in paragraphs 5.2.11, 6.2.14, and 7.2.31 of 7CPC report. == Definitions ==

Anomaly According to Ministry of Personnel, Public Grievances and pensions, an anomaly (a deviation from the common rule, type, arrangement, or form; an incongruity or inconsistency)for the purposes of examining the 7CPC, includes the following two cases: "(a) where the Official Side and the Staff Side are of the opinion that any recommendation is in contravention of the principle or the policy enunciated by the Seventh Central Pay Commission itself without the Commission assigning any reason; and (b) where the maximum of the Level in the Pay Matrix corresponding to the applicable Grade Pay in the Pay Band under the pre-revised structure, as notified vide CCS (RP) Rules 2016, is less than the amount an employee is entitled to be fixed at, as per the formula for fixation of pay contained in the said Rules". Grade, level, and rank Grade pay, level, and rank are used interchangeably by 7CPC and government in its various implementation orders The 20 distinct pay grades or ranks in the government hierarchy, intended to 'determine the status', and the Seniority of a post. and make "Pay scales ..irrelevant for purposes of computing seniority". proposed by the 6CPC, and accepted by the Congress I government, in 2008, have been replaced by 18 "New functional levels" l which the BJP government has accepted on 25 July 2016. The 'levels' which correlate to ranks, in civil and military hierarchy, were "arrived at by merging the grade pay with the pay in the pay band". The "Level" is, according to the 7CPC, the new "status determiner". All levels, and ranks, civilian and military are covered in the level 1 to 18 spectrum. Chiefs of the armed forces, and the cabinet secretary, are at level 18. == Recommendation and Anomalies ==

Armed forces have identified 37 anomalies in the 7CPC recommendations that affect the armed forces. Some of issues are as follows: (a) Principles, and formulas, used by the commission used to determine time scale pay and levels, of the armed forces, and specially the civilian security apparatus, which consists of defence civilians, and police led para military forces, now called Central Armed Police Force, police bureaucracy, and secret police intelligence services. The armed forces have alleged their salaries have been "artificially suppressed", which have affected armed forces time scale ranks of captain, majors, and lt colonels, and selection grade ranks of colonel, and brigadiers. The basis for determining armed forces pay, level, status, pension, recommended by 7CPC is similar to 6CPC, except for terminological changes. The 7CPC recommended replacing 'grade pay and pay bands' of 6CPC, with two "Pay Matrices": one for the civil services, police, defence civilians, and another for the armed forces. The comparative time scale 'levels' between police and defence civilians and the armed forces are tabulated below. Anomalies in levels and ranks Among the 37 anomalies highlighted by the armed forces headquarters to the ministry of defence (MOD) critical ones relates to asymmetries in armed and civil and police pay, rank, and allowances. The inclusion of historical and traditional relativity' in the 'term of reference' in 7CPC notification, it was hoped, would address this issue, especially against the background of public protest from 2008 to 2015, under the One Rank One Pension banner, in which a significant number of senior most retired personnel of the armed forces participated, and highlighted the growing gap between the pay, and status of armed forces and defence civilians, police, and other civilian officers. Siachen Allowance Siachen Allowance is an allowance given to officers and men of the armed forces posted in Siachen, a high altitude area, with extreme weather conditions. The 7CPC in its recommendation noted that "keeping in view the extremely difficult conditions in the area" and recognizing that the hardship and risk in Siachen is "maximum that any Government servant faces", created an extra 'cell' called Risk hardship Maximum (RH-Max) outside its "Risk and Hardship Matrix" of nine cells each representing low, medium and high levels of hardship and risk . Saichen allowance, 7CPC explained, is the ceiling for Risk and hardship allowance (RHA) because "no government employee faces more Risk/Hardship in his work than our Defence officers and jawans posted in Siachen Glacier. Hence, no RHA can have a value higher than this allowance" :para 8.10.67Saichen allowance is the highest in the hierarchy of allowances.:para 8.10.66 The 7CPC recommended that the existing allowance of Rs 21000 pm for officers be increased to Rs 31,500, and for JCOs, NCOs and other ranks increased from ₹ 14, 000 pm to 21,000:para 8.10.47 The 7CPC however, anomalously recommended several allowances which have "a higher value" than the Saichen allowance, even though these allowances are lower in the hierarchy of risk and hardship matrix. Among the allowances which is higher in value than Saichen allowance is the Special Duty Allowance (SDA), which is 30 percent of pay unlike the Saichen allowance which is a fixed amount. SDA is paid to defence civilians and police officers among other group A services posted in NE India, and Ladakh, including in Gawahati, Aizawl, Shillong, Kohima and Leh.: para 4.2.14: para 8.17.115The armed forces headquarters have said that "Siachen cannot be equal or lower to Guwahati when deciding on the "hardship" factor". They have recommended a new "hardship matrix" to decide allowances for the armed forces. They have recommended 65 percent of salary as Saichen allowance.Finance and defence minister Arun Jaitley, briefing media after a meeting of the Cabinet, said the hardship allowance for officers would be increased to Rs 42,500 per month. == Response to 7CPC ==

=== Indian National Congress === Shashi Tharoor, former Under-Secretary-General of the United Nations, and INC spokesperson, Ajay Kumar, Member of Parliament, spokesperson of the All India Congress Committee (AICC) and Captain Amarinder Singh, former Chief Minister of Punjab, and current president of Congress Committee in Punjab, have called the 7CPC recommendation for the armed forces discriminatory. == Managing anomalies ==

To address the issue of 'anomalies' in the 7CPC report and recommendations, including those overlooked or not considered by the 'Committee of Empowered Secretaries' the BJP government constituted a committee on anomalies, and committee on anomalies in allowances. The armed forces are excluded from the anomalies committee, which has become cause of litigation. Committee on anomalies The mandate of the Committee on anomalies is to " a comprehensive view" of anomalies other than allowances. To consider the anomalies some 79 Departmental committees, under of respective Additional Secretary/ Joint Secretary, have been constituted. Each committee consists of Chairperson, a "Financial Adviser of the Ministry / Department", and a "Staff Side" member. These committees are expected to complete their work within one year, after which the "Government will approve or disapprove the recommendations of the Anomaly Committee". These committees will be supervised by Department of Personnel and Training. Col Preetpal Singh Grewal, in his pleas to the High court, had submitted that: (a)'Anomalies Committees' constituted by government to look into the 7th CPC recommendations has excluded defence personnel and the defence headquarters from the anomalies redressal process; [b] MOD did not inform the defence services about the work of the committee; [c] defence services learnt about the commencement of hearing from press reports; [d] Supreme Court has already held that defence personnel should not be treated in a "shabby manner" or deprived of rights that are available to other citizens; [e] in view of statutory bar on defence personnel forming associations' there should be suitable alternative participation mechanism that meets at regular intervals where issues related to defence personnel could be discussed and resolved; and [f] Standing Committee on Welfare of Ex-Servicemen, has not yet held a single meeting, despite Defence Minister Manohar Parrikar instructions that it hold meetings every three months. == Time line ==

27 December 2008 Manmohan Singh, Prime Minister, issues instructions that "In future, pay revision of the armed forces should be de-linked from that of civilians and separate board or commission should be set up for pay revision of the armed forces." 13 September 2013 India Today, cites a MOD letter leaked to it by a Joint Secretary in the MOD, titled 'Common VII Central Pay Commission' purportedly written by Air Chief Marshal NAK Browne, the Chairman Chief of Staff Committee (COSC), to AK Antony, Defence Minister. According to the 'letter' the government is in favour of a separate pay commission for the armed forces, but the armed forces would rather be part of the 7CPC instead of having a separate pay commission. Air Chief Marshal NAK Browne, according to the 'letter' opposed a separate pay commission for the armed Forces, because "a separate pay commission may not necessarily benefit the services as anomalies are invariably bound to arise in both cases"; and that the main cause dissatisfaction in the armed Forces is not a separate pay commission but the "non-resolution of anomalies or ex parte resolution of anomalies" 15 December 2015 Prime Minister Narendra Modi, address Combined Commanders' Conference on board INS Vikramaditya. Defence Minister Manohar Parrikar says "analysing armed forces demands" 16 December 2015 Manohar Parrikar, Defence Minister, after laying wreath at Amar Jawan Jyoti at India Gate to mark Vijay Diwas (India), with the General Dalbir Singh, Chief of army Staff (COAS) Air Chief Marshal Arup Raha, Chief of Air Staff, and Admiral R.K. Dhowan, Chief of naval Staff, tells reporters "We are analyzing them (7th Pay Commission)" and that "by next week we will be able to see what can be done." 13 January 2016 Prime Minister Narendra Modi approves "Constitution of an Empowered Committee of Secretaries" under chairmanship of cabinet secretary to process the recommendations of the 7th Central Pay Commission with "regard to all relevant factors, in an expeditious detailed and holistic fashion". 27 January 2016 Finance Ministry issues instruction on the composition and work of the 7thCPC Empowered Committee. The 'Empowered Committee of Secretaries', has 13 members including the Cabinet Secretary, the chairperson. It is four times the size of the 7CPC, which had three members. Eight members are from the IAS, one from the Indian Police service, and one each from Department of Science and Technology, Railways, Audit and Account Service. The 'Empowered Committee of Secretaries' is mandated to screen the "recommendations of the Commission", and to take "in to account the views of concerned stake holders viz., Ministries, Departments, Staff Associations, and JCM". Members of the Empowered Committee include: [1] Pradeep Kumar Sinha, Cabinet Secretary, Chairman; [2] Ashok Lavasa, IAS, Finance Secretary (Expenditure); [3] Rajiv Mehrishi, IAS, Ministry of Home (MHA); [4] G. Mohan Kumar, IAS, Defence Secretary, MOD; [5] CK Mishra, IAS (1983, Bihar cadre), Secretary, IAS, Secretary Health and Family Welfare;[6] B P Sharma, IAS (1981, Bihar cadre), Secretary, Personnel & Training; [7] Secretary Department of Pensions; [8] Boyapati Venkat Sudhakar, Indian Postal Service, 1981 batch, Secretary, Department of Posts [9] A.K. Mittal, IRES, Chairman Railway Board [10] Secretary Security, Cabinet Secretariat; [11] Deputy Comptroller and Auditor General, IA&AS; [12] Secretary, Department of Science and Technology; [13] Dr. Hasmukh Adhia, IAS, (1981 batch Gujarat cadre), Secretary, Department of Revenue. 11 March 2016 Service chiefs brief "Empowered Committee of Secretaries"[1] 22 March 2016 Manohar Parrikar, Defence Minister, according to MOD media briefing, agrees that there are flaws in the 7CPC, including flaws identified by three service chiefs. The armed forces identified 37 anomalies in the 7CPC report of which eight are considered critical. Some of the anomalies flagged by the armed forces are: [a] false equation and comparison of mandates, risks, and conditions of service of defence forces with the police paramilitary forces, Central Reserve Police Forces (CRPF), Border Security Force (BSF), Indo-Tibetan Border Police (ITBP), Central Industrial Security Force (CISF) and the Sashastra Seema Bal (SSB); [b] higher allowance (30 percent of salary) for to police officers, IAS officers, and defence civilians, posted in places like Gauhati and other towns than to armed forces officers and soldiers posted in Siachen [ 31500-20,000]. Parrikar, according to media reports, has conveyed to the empowered committee headed by the Cabinet Secretary that armed forces should be kept above all other "fighting" arms of the government . 22 July 2016 In the wake of the criticism of the 7CPC recommendations on allowances, the government announces the constitution of a committee of seven bureaucrats for making "recommendations on allowances, other than Dearness Allowance". The seven members of the allowances committee are the same persons who were members of the "empowered Committee" of 13 secretaries. The committee is to submit its report within four months. 25 July 2016 The government issues resolution notifying acceptance of Commission's recommendations on "Pay Matrices and general recommendations on pay without any material alteration with the following exceptions in Defence Pay Matrix in order to maintain parity in pay with Central Armed Police Forces" : the Index of Rationalization of Level 13A (Brigadier) in Defence Pay Matrix revised upward from 2.57 to 2.67; (ii) additional three stages in Levels 12A (Lieutenant Colonel), three stages in Level 13 (Colonel) and two stages in Level 13A (Brigadier). The resolution states that NonFunctional Upgradation (NFU), admissible to the Indian Police Service/Indian Forest Service and Organised Group 'A' Services, on which there was no consensus in the commission, is to remain. NFU not extended to the armed forces. 17 August 2016 Rajeev Chandrasekhar, Independent Rajya Sabha MP, member of Parliament's Standing Committee on Defence, commenting on the government to implement the flawed recommendations of the 7CPC in an interview said [a] "the issue is not about money but status of 'armed forces vis-à-vis other central government services', ... status in the hierarchy of service and command; [b] 'There is absolutely no doubt that IAS and IPS because of their proximity to the political powers have over successive pay commissions given themselves sweeter and sweeter deals and left the military out in the cold'.[c] This is because "the military has never been represented in these pay commissions"; [d] "If government has an explanation for this they should make it. If IAS or pay commission has a reason for this why are they not putting it out in public domain?"; [e] 46 anomalies from 6th Pay Commission and 36 from 7th Pay Commission remain unresolved and there is no legitimate answer given on why their requests are being turned down". 5 September 2016 Ministry of Defence (MOD) promulgates gazette notification on recommendations of 7CPC affecting armed forces notifies Implementation orders for 7CPC. 7 September 2016 Chiefs of Staff Committee (CoSC) meets and decides to withhold the implementation of 7CPC till 'anomalies' are resolved. The MOD, insists "what all has been decided has to be implemented and legitimate grievances can be addressed later." The MoD on the instructions of Parrikar, had informed the empowered committee headed by the Cabinet Secretary, in March 2016, that armed forces be kept above all other "fighting" arms of the government. It is not clear who other than the armed forces constitute 'fighting arms ' of the government. The news of the action by the Chiefs of Staff, Oberoi says "reflects two important points. Firstly, it shows the government in very bad light indeed, and is actually a slur on the ability of the political leadership not to understand the extent of angst in all ranks of our military. Secondly, it shows the resolve of the Chiefs to fight a highly unjust award, planned, written and implemented by the bureaucracy by taking a nod from the political leadership". He cautions the armed forces not to fall prey to government "blandishments of all types, like more committees; ministerial interventions and even subtle threats, not to mention the usual 'how much the nation needs you' kind of words! They must desist and not fall for such ploys." On 7CPC recommendation to pay soldiers and officers serving in Saichen a far lesser allowance than civil servants posted in Assam, he said, "I have been seriously suggesting to the defence minister that the bureaucrats, who have habitually been creating hurdles and hindrances in providing better pay to the defence personnel, should be made to serve in Siachen for at least a day. " "Nobody among the bureaucrats knows about the hostile conditions in which our soldiers are made to work and that is the reason there is such a bias against the defence forces," he said. He urged the Defence Minister 'to stand by the soldiers and get the anomalies sorted'. 13 September 2016 The Tribune in an editorial calls the action by the armed forces, seeking delay in implementation of the Seventh Central Pay Commission (CPC) till the anomalies are addressed, an "unusual step", which does not "auger well for the country". 15 September 2016 A large contingent of veterans led by Lt Gen S S Brar (retd), march to the office of Punjab Governor V P Singh Badnore and submit a memorandum, addressed to the President of India. The memorandum says "The community of veterans across the country fully endorses the stand taken by the Chiefs of Army, Navy and Air Force with regard to the recommendations of the seventh Central Pay Commission" 12 October 2016 Defence Minister Manohar Parrikar said, "Yes, there are some anomalies in the 7th pay commission", and "I can assure the people of the country and our armed forces that I have personally taken up the matter with the Prime Minister". The disability pension, he said, " is just a draft now", he said. "No final order has been issued as yet, only a draft resolution has been put up on the website. We will examine and try to address all that can be addressed, and forward the same to the anomalies committee for their opinion." The resolution on the MOD website that the minister referred to, however, does not say it is a draft. 13 October 2016 The MOD in response to growing public criticism of the government's decision to implement a more favourable disability pension scheme called 'percentage based system', than the one implemented for the armed forces, called slab based system, issued a press release informing that the representation of the Service Headquarters seeking a disability pension scheme at par with the civilians, has been referred to "the Anomaly Committee of 7th CPC for consideration". 18 October 2016 Defence Minister Manohar Parrikar authorizes G.Mohan Kumar, IAS, Defence Secretary to issue of memo (No A/24577/CAO/CP Cell) tabulating rank equivalence between armed forces officers and select officers of the Armed Forces Headquarter Civil Service, a Group B service responsible for house keeping and secretarial functions in armed forces headquarters, and inter-service organizations. The memo is signed by V Anandarajan, Chief administrative Officer (CAO), Ministry Of Defence (MOD), under G.Mohan Kumar, IAS, Defence Secretary. Anandarajan, Joint Secretary, is an officer belonging to the Indian Revenue Service, income tax branch, of 1988 batch, on deputation with MOD. The memo is addressed to Staff Duties (SD) Directorate, Army headquarters, and equivalent directorates in the Air-force and Navy among others. In its last paragraph, the memo says it has the approval of the Raksha Mantri (Defence Minister Mohan Parrikar). In justification of memo cites' administrative orders' issued in 2003, 2005, and 2008. The letter cited by The tabulation affect the status of tens of thousands of armed forces officers, specifically officers holding the ranks from lieutenant to major general. The tabulation which is opposed by armed forces headquarters, was issued 'unilaterally' and without prior consultation with Chiefs of staff, or the armed Forces headquarters.'' "We have been stabbed in the back", a senior officer told the Hindustan Times. Serving officer in the army headquarters, complained that according to equation in the memo (No A/24577/CAO/CP) "a captain is equivalent to a civilian Group B section officer. This isn't mischief, but mischief-plus by bureaucrats.'" They alleged that memo is "an attempt to reverse clearly established protocols established by successive pay panel reports and court rulings"; is against the spirit of recommendations made by a Committee headed by Pranab Mukherjee after the 6th Pay Commission report; and that down gradation of armed forces ranks will widen the "civil-military rift" and affect morale. He would, he said, "scrutinize the orders to detect anomalies that threaten to widen the civil-military divide". In justification the MOD press release says it had issued similar administrative memos in 1991 and 92, during the tenure of NN Vohra(1990–93) as defence secretary, and memos issued by Yogendra Narain in 2000, and Ajai Vikram Singh in 2004, and in 2005, when Anthony from Congress I was the defence minister. Senior serving officer commenting on the issues raided by memo of 18 October 2016, told Quint, on conditions of anonymity, that "There can be no more than one parameter for 'equivalence'. How can there be separate equivalence for 'Functionality', 'Warrant of Precedence'; and based on 'Pay Scales/ Grade Pay' ? Accepting such multiple regimes is a deliberate act of causing confusion and subverting status as per convenience". The officer added that "it was important to scrutinise the mandate of AFHQ cadre" which was "meant to provide only secretarial support and had no executive authority or powers, they said comparing them to armed forces officers who have executive powers, exercise command over men in peace and war, and also have substantial judicial powers, is insane -- like comparing "chalk and cheese". 25 November 2016 Subhash Bhamre, Minister of State for Defence, in a written reply to a question by Sultan Ahmed, prompted by public concern about issue of asymmetries in the pay and rank between the armed forces and civilians, including police, informed the Lok Sabha, that 7th Central Pay Commission (CPC) had adopted the same the "principles and philosophy" it had "adopted in devising the Pay Matrix for civilian employees". And to address the issue of parity, "The Government accepted the Commission's recommendations on Minimum Pay, Fitment Factor, Index of Rationalization, Pay Matrices and general recommendations on pay with certain exceptions in Defence Pay Matrix, namely, (i)revision of Index of Rationalization of Level 13A (Brigadier) from 2.57 to 2.67; and (ii)addition of three stages in Level 12A (Lt Colonel), three stages in Level 13 (Colonel), and two stages in Level 13A (Brigadier)". The minister however, did not address, the related issue of the asymmetries in the ranks and levels, and of historical parities between the armed forces and police and defence civilians, which has not been addressed by the 7CPC or the government. The press release added that "As and when issues regarding anomalies in the pay of defence personnel are brought to notice, the same are examined by the Government, on case to case basis". When asked in the Rajya sabha, whether the MOD was considering "correcting the discrepancies that have arisen as a result of this disturbance of rank equations", replied the question "does not arise". He did not comment on the fact that service headquarters are not in agreement with the imposed equivalence or that service chiefs have highlighted their dismay over the rank and level comparisons between armed forces officers and group A civil services. == See also ==