PROLOGUE ( By Surjit)

Kapil Aggarwal has sent in a well-researched paper on how the current pay matrix for defence officers was crafted during the implementation of the 7^th Pay Commission. It answers many queries which some of us had. However, before going through the document, it would be useful to recollect the pay matrix as it was about forty years ago. The table is given below, since the figures can speak for themselves.

It will not take you long to notice the following features of this dispensation:

• Majors and Lt Cols who were the backbone of service hit the top of their pay scales after completing 18 and 20 years of service. They stagnated at these humble levels for the rest of their service. The time-scale promotion was granted to Majors after 24 years of service.

• There was no increment admissible to Lt Col (TS)

• The ratio disparity between the pay of the junior officers and the general officers was much higher than the current relativities.

In Nov 1983, I was posted to the Pay Cell created by the Army for the 4^th Central Pay Commission. I have a distinct memory of the charter given to us by our bosses. The objective was to make military service as attractive as the Civilian group A service. We found a stiff resistance to break the glass ceiling of the equivalence at the apex levels. In my view, the manner in which they represented the case is commendable. The paper is given below.

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ASCENDING THE PAY SUMMIT : COLs & BRIGs

By Lt Gen KK Aggarwal, AVSM, SM, VSM (Veteran)

 

All ranks in the Defence Forces, up to the rank of Brigs and equivalents, got a pay and pension boost in the form of Military Service Pay (MSP) granted by the 6^th CPC in the year 2008. The denial of MSP to Gen officers and their equivalents in the three Services created a situation wherein their pay and pension could end up being lower than a senior Brig or a Col.  This glaring anomaly was identified and submitted but never resolved.  The 7^th CPC award of year 2015 dealt another blow, this time to Lt Cols, Cols, Brigs and some senior JCOs/OR whose pay was artificially capped in the new Pay Matrix. Ironically, when the pay issues of these ranks were resolved in 2016 (the pay of Cols & Brigs getting corrected upwards by an amount up to Rs 20,000, virtually ascending a summit), it further exacerbated the pay and pension inequity for Gen officers. A simple solution to this problem within existing Govt rules was submitted but orders were never issued. It is only recently in   the month of September 2024 that happy tidings finally arrived for all Veteran officers of the rank of Maj Gens, Lt Gens, VCOAS / Army Commanders and equivalent ranks in the three Services. Their pension has finally been increased in OROP – 3 tables and goes up to Rs 1,16,550, resolving the problem of Veteran Brigadiers and Colonels getting higher pension than Gen officers.  At this juncture, it will be worthwhile to recount the genesis of this problem and how it has played out, especially the turning point in the year 2016.

Background

In the run- up to the 7th CPC, the three Services had carried out rigorous research on Pay, Allowance and Pension proposals, debated the proposals endlessly and finally submitted a very well rounded, unanimous Joint Services Memorandum (JSM), duly signed by the Chiefs of Staff Committee (CoSC). The Chairman 7th CPC was then given a number of briefings for more than a year, beginning April 2014, as well as taken to various tri – Service establishments from High Altitude Areas to A & N islands to showcase the hardships faced by soldiers and to enable the CPC to interact with all ranks. Although the attitude of Chairman 7th CPC toward Services appeared jarring many times, the Services were optimistic of resolving long standing anomalies, based on their solid, well researched submissions.

The report of the 7th Central Pay Commission was submitted in Nov 2015, well in time, unlike earlier Pay Commissions. The new pay scales were to be implemented from 01 Jan 2016. All Central Govt Departments got busy scanning the report to see what it has for them. The first realization was a rather subpar increment of 14.29% for computing new Basic Pay (after merging previous BP and DA). Earlier Pay Commissions had given a more substantive increment. The award had yet again changed the system from the four Pay Bands of 6th CPC to a new Matrix system. The erstwhile Grade Pays became Levels or Columns of the new Matrix system while stages (rows) of the matrix denoted the number of years of service in a particular rank or Level (Grade Pay). The new pay figures were pre – fitted in this matrix, with each succeeding row (for a particular Level) pencilling in an increase of 3% (same annual increment as earlier), duly rounded off to a higher figure. Prima facie, this appeared a visible improvement as each Central Govt employee could verify the pay fixation by his Pay Office, himself / herself.

For the discerning, the disagreement between the Chairman 7th CPC and its only member (ex IAS), as far as critical features like continuation of NFU granted by 6th CPC, was evident from the text of the report. The largesse towards the IPS officers was also clear; two additional pay increments for promotion to three ranks of IPS (total six additional increments) were granted. The unstated intent, clearly, was to bridge the gap between IPS and IAS with Indian Forest Service also benefitting, being the third All India Service. There were some benefits for other civil services also but surprisingly, the 7th CPC report was silent on the JSM proposals submitted by the Services.

The Defence Services also discovered to their surprise that Civil Pay Matrix (CPM) was not applicable to defence personnel and a separate Defence Pay Matrix (DPM) had been awarded. On preliminary examination, everything in the DPM appeared the same as CPM, the same Index of Rationalisation for different Levels, the same annual increment, the same Levels (with two additional columns, for Capt and Lt Col, ie 10 B, and 12A respectively, who were granted unique Grade Pays by 6th CPC, different to civilians).  But was the requirement of these two additional Levels / Columns sufficient reason for delinking defence pay structure from CPM? After all, these additional columns could have been inserted into CPM itself without causing any confusion.

 The intent became evident when one looked at the number of stages (rows) in the matrix; for the JCOs/OR, the number of rows in the DPM were restricted to 24, ie for the top of scale for a rank, the number of annual increments was restricted to 24. On the other hand, the CPM had 40 rows. ie 40 increments for corresponding Levels. For defence officers also, this anomaly of lower number of rows in DPM vis a vis CPM was repeated, leading to lower top of scale for three ranks vis a vis civilian counterparts. The anomaly is summarized for these three officer ranks in the table below.

TOP OF SCALE (EXCLUDING MSP*) (Rs)

Level             Rank**          CPM             Original DPM                 Loss in DPM

12A (8000)     Lt Col             NA                   1,92,800                            -

13 (8700)       Col               2,14,100            1,95,800                      18300

13A (8900)     Brig              2,16,600            1.97,500                      19100

*MSP : Military Service Pay (applicable to defence personnel only;  first granted by 6th CPC)

** or equivalent ranks

There was no reason specified in the 7th CPC report for abruptly abridging the stages (rows) of the DPM for all ranks. For JCOs /OR and equivalents, with only 24 rows given in DPM vis a vis 40 of civilians, it would cap the salary for those few who serve till the age of 54 / 55 / 57 (Army/Navy/Air Force); their Basic Pay will stagnate in the last few years of their service, stagnation which was done away in earlier Pay Commission.  The 7th CPC had increased the MSP of JCOs/OR to Rs 5200 pm and Officers to Rs 15500, in consonance with the multiplication factor of 2.57 applied to pay and allowances of all Central Govt employees. If one looks at the column “Loss in DPM” in the above table, it emerges that what was given to defence personnel by the 6th CPC, in the form of MSP as compensation for unique military hardships, more than that was sought to be withdrawn by 7th CPC through the mechanism of a separate DPM, although not stated anywhere. There could be no other reason. With this maneouvre, it was ensured that the gross Pay (Basic Pay plus MSP) on top of the scale for all ranks, from the humble Sepoy to a Brig, will always be lower than Basic Pay of his civilian counterpart. The Gen officers (Maj Gens & Lt Gens), as it is got no MSP and their top of scale was always kept equal / a tad lower than their civilian counterparts, ie Joint Secretary/ Additional Secretary/ Secretary to Govt of India.

The Defence Forces realised that the adverse effect of this unfair DPM could be best negated by doing away entirely with the DPM itself and making CPM applicable to defence personnel also, with a few additional columns inserted for Forces specific ranks / Grade Pays / Levels. Nothing difficult, a new proposed CPM matrix, incorporating just two additional columns, was formulated and submitted to MoD for Govt sanction, along with cases taken up for removing other major anomalies. Briefings and presentations were given to the Raksha Mantri and top bureaucrats, including Cabinet Secretary. Nobody had an answer to the question as to what was the need of separate DPM and why the rows of the DPM were abridged vis a vis CPM.  However, the Govt resolution promulgated in July 2016 just reproduced the Pay Matrices recommended in 7th CPC report and no anomalies whatsoever were resolved.

The degradation in pay of defence personnel caused by the DPM and perceived loss of status vis a vis civilian, led to a serious consternation and dissatisfaction amongst the defence personnel. Frantic all-round efforts were made by the hierarchy to get the anomaly rectified but to no avail.  The CoSC then wrote to the Hon’ble Raksha Mantri that the Pay award to defence should be held in abeyance till the major anomalies were   resolved. This was unprecedented and serious. Ultimately, somebody in the Govt took note of the impasse and the CoSC was granted an audience at PMO for across the table confabulation. The CoSC (CAS and COAS) decided to take the Chairman Army Pay Commission Cell (CAPC), a two star General, with them, on the appointed date.

 

The Turning Point

The CoSC (CAS and COAS) was ushered in the office of Principal Secretary (Princ Secy) to PMO and were seated across his large office desk.  They made the CAPC sit in between them, facing the Princ Secy, as he was to pilot the discussion. It was a rather uncomfortable situation for any two star General but he had no choice. He knew he would get very little time to present the case and discuss numerous anomalies; accordingly, he had rehearsed his lines. He started with the major anomaly of the Pay Matrices and the conversation went like this (in brief) –

CAPC  :  Sir, in earlier Pay Commission,  the pay of civilian and defence personnel was governed by a common Pay Band Structure. But this time, separate Pay Matrix has been awarded to defence personnel. Sir, we in the Services, did not ask for a separate Pay Matrix and we would like pay of defence personnel to be also governed by the Civilian Pay Matrix, which should be termed a   Common Pay Matrix.

Princ Secy  :  (cutting the Army Man short) No, No, we cannot grant you the same Pay Matix.

CAPC : Sir, in that case, many anomalies will arise; we are only striving for pay parity with civilians.

Princ Secy : (again interrupting rather angrily) Why do you compare yourselves with civilians? You have so many things which civilians don’t have. Should we give the things that you have to the civilians?

(At this point the CAPC instantly understood that the Princ Secy is referring to the MSP, the CSD facilities, the Cantts etc. He decided, it was time to be bold.)

CAPC  : (without looking at the CoSC)  Yes Sir, we have no objections; you may grant whatever perks we have to the civilians, no problems. This was   earlier conveyed to Chairman 7th CPC also when he posed a similar query to   me. Our only request is to be granted parity in pay via a Common Pay Matrix.

Princ Secy :  No CPM cannot be granted. What’s your problem with DPM?

The CAPC knew that the Princ Secy had been briefed by the Joint Secretary PMO (whom he had met earlier to debunk his wrong theory on OROP) not to cede to our demand for CPM. Although, the Princ Secy had firmly rejected the strategy devised by the three Services, yet the CAPC realised that a new opportunity has now manifested itself.

CAPC : (rolling out the CPM and DPM) Sir, please  look here, the CPM has 40 rows till column 11 while the DPM has only 24 rows. This implies 16 fewer annual increments of pay to defence personnel.

Princ Secy : (looking non – plussed) What is the reason ? (addressing the Joint Secretary,).

Joint Secretary (JS) : But the junior ranks in Services, retire much earlier, don’t serve till 60 years of age, hence lesser number of rows.

CAPC :  Sir,  JCOs in Navy and AF can serve till 55 / 57 years of age, although numbers may be small.  A soldier can be recruited at 17 years of age and if he serves till 57 years of age, he would have also rendered 40 years of service, just like civilians. So there needs to be no disparity in number of rows, ie pay increments between CPM and DPM.

(Princ Secy and JS are quiet)

Chairman CoSC and CAS : Yes that’s right, we cannot have senior soldiers (JCOs/ NCOs) not getting their annual increment of pay,  which is to be given to all.

CAPC : Sir,  please  look  further at the Columns 12 A, 13 and 13 A of the DPM, these columns have been terminated at 18, 16 and 14 rows respectively, much earlier than Columns 13 and 13 A of CPM.

Princ Secy :   Why do  these columns have lesser number of rows ? (addressing the JS).

 (The CAPC is sure that the JS, an IIT Kharagpur alumni, is smart enough to understand the unstated intent of 7th CPC but he cannot admit their unfair approach in front of the CoSC).

CAPC : (seeing the JS fumbling for a reply) Sir, it could be an oversight or a typo. Extending the three columns by 2-3 rows in the DPM, to bring it in conformity with CPM, won’t make a difference.

COAS : In all fairness, this needs to be done.

Princ Secy : Any problems ? (addressing the JS).

JS :  Again mumbles something.

Princ Secy :  OK, any other problem in DPM?

CAPC :  Sir, one smaller issue; the Lt Cols and Cols, Columns 12A and 13  have to be given higher Index of Rationalization (IoR) of 2.67, instead of  existing 2.57, like other Column 13 A, both in CPM and DPM.

Princ Secy :  (peering at the  pay matrices) Then we will have to increase IoR of Column 13 of CPM also.

CAPC : Yes Sir, the CPM can also be given higher IOR.

(The JS nods in approval this time.)

Princ Secy : All right, pl issue instructions to extend the rows of DPM as discussed (addressing the JS).

(CAPC exults silently; the pay stagnation issue of JCOs /OR serving beyond 50 years of age, is resolved. He knows that Lt Cols, Cols and Brigs & equivalent will now have much higher top of pay scale. After adding MSP, it will exceed the pay of Gen officers, even VCOAS and Army Commander. But this is a happy internal anomaly and will have to be resolved by giving compensatory increase to the Gen officers, sooner or later, as a junior cannot get higher pay than a senior.)

Princ Secy :  (addressing the CoSC now) OK,  so your major issue stands resolved.  Other issues can be referred to MoD.

The CoSC then thanks the Princ Secy to PMO and leaves with CAPC in tow.

 

 The Revised Govt Resolution

The meeting in PMO office had gone well, despite the not so favourable vibes. However, until the orders for the amendments got promulgated, nothing could be assumed.  Fortunately, the wait was not long and the revised DPM was received soon after. Even the orders for amendment to earlier Gazette notification for Armed Forces were issued after a few months on 22 June 2017. It encompassed the following :-

The revised DPM, increasing the number of rows, as discussed in PMO office.

• Increase in IoR of Columns 12A and 13 from 2.57 to 2.67. Even the CPM Column 13, benifitted by increasing the IoR to 2.67.

• Pay Matrix of MNS was also revised to reflect higher IoR and remove some errors.

Comparison of top of pay scales of Lt Col, Col and Brigs & equivalents, original DPM and revised DPM is as follows :-

TOP OF SCALE (EXCLUDING MSP*) (Rs)

Level             Rank          Original DPM         Revised DPM           Increase

12A (8000)     Lt Col            1,92,800                2, 12,400                 19,600               -

13 (8700)       Col                1,95,800                2,15,900                   20100

13A (8900)     Brig              1.97,500                 2,17,600                   20100

 

The deliberations in PMO that day ended in benefitting many ranks of defence, including MNS as well as civilians.  It was a most satisfying outcome; an increase of approx Rs 20,000 in the pay of Lt Cols, Cols & Brigs (and consequently pension by half that amount) was definitely a hammer blow in their favour. These officer ranks had really ascended the Pay Summit, there can be nothing beyond this in the 7^th CPC regime.  However, it created a fresh anomaly; the pay plus MSP of Lt Cols, Cols and Brigs & equivalents on top of their respective scales, far exceeded top pay of all Gen officers till VCOAS / Army Commanders & equivalent. The top of pay scale of a Brig could be Rs 2,17,600 + 15,500, ie a total of Rs 2,33,100 which exceeds pay of Apex scale of Rs 2,25,000. This situation of a junior officer getting more pay than senior officer was untenable and violated principles of natural justice. It was reasonable to expect that this anomaly will be rectified sooner rather than later in a nation which is governed on the tenets of fair play and equity.

 Over the years, the Services have repeatedly realised to their chagrin that the cases initiated for resolving their pay and allowance anomalies are either not processed at all or move at a snail’s pace. As a result, while their anomalies only keep piling, the cases of civilians move in the fast lane. Now for the first time, if the   PMO rulings on the DPM are implemented in a just manner, there is a real prospect of the Pay & Pension tortoise of defence personnel decisively overtaking the Pay and Pension hare of the civilians. The Allowances, however, are in a different category; there are still many disparities between civilians and defence personnel working in the same area, with the combatants getting a lower sum.

The Aftermath

The issue of Gen officers getting lower pay and consequently lower pension was discussed in the tri-Services Pay Renumeration Committee (PARC).  Grant of MSP to Gen officers would have straight away resolved this anomaly but this was neither granted by the Govt post 6th CPC nor accepted by 7th CPC despite cogent arguments fielded by the three Services. PARC knew very well that granting MSP to Gen officers will result in them getting higher salary than even Secretary to Govt of India which was anathema to the bureaucracy and the real reason why it had not been accepted by Govt since year 2008. Thus, an alternate solution of grant of Personal Pay (PP) was devised, as per provisions of Govt FR/SR, which are meant to resolve such situations where a junior is getting higher salary than senior. After discussions with MoD (Fin), the proposal of PP for Gen officers was put up to Principal Personnel Officers Committee (PPOC) and approved by them.

The proposal thereafter was moved on file by PARC for concurrence of MoD (Fin) which was accorded. CAPC then personally took the file by hand to MoD, DoP&T and finally MoF, explaining the solution threadbare to all the officers. Since the solution was as per the existing Govt provisions and had paltry financial implications (just about 500 Gen officers and equivalents being the beneficiaries in the three Services), the proposal was endorsed on file by all. MoF then conveyed that the file has been put up for approval of the Hon’ble FM. A couple of months later the Hon’ble FM was seen on TV, replying to a journalist who had raised the issue of Gen officers getting lower pay, wherein the Hon’ble FM emphatically stated that the anomaly cannot be allowed to continue and Govt will soon resolve it. However, the proposal of grant of PP to Gen officers never saw the light of the day, perhaps shelved due to opposition from usual quarters.

Legal Recourse

The anomaly of junior getting more pay and pension than a senior was not getting resolved by the Govt, despite a simple solution, enumerated above, having already been submitted for approval in 2017. Consequently, a case was filed in the Punjab and Haryana High Court which directed the Govt in Feb 2022 to redress the glaring incongruity within a time frame of six months. Since the directions were not implemented, a notice was issued to the Govt as to why contempt proceedings should not be initiated.  Thereafter, in partial resolution to the problem, MoD granted pay protection to Maj Gens drawing pay less than Brigs, in June 2023.  But this came with a rider of cap of Rs 2,25,000 imposed on the Gen officers. Clearly, the MoD was not willing to allow pay of Gen officers to exceed the pay of Secretary to the Govt of India, despite earning the opprobrium of the HC and despite Brigs Pay reaching Rs 2,33,100. 

However, the judgement of Punjab & Haryana High Court now stands implemented in the latest OROP tables issued in Sep 2024 and pension of all Maj Gens, Lt Gens, Cs-in-C and equivalent stands upgraded and protected vis a vis Brigs. The struggle of last several years has come to fruition and the top pension of Gen Officers is Rs 1,16,550 (corresponding to top pay of Rs 2,33,100 of Brig). Having done this, it will be even more difficult for MoD to retain the pay cap of Rs 2,25,000 for Gen officers. Once this pay cap is removed through the legal recourse or otherwise, the only pay and pension issue left will be to get the pay arrears for all Gen officers, starting from 6th CPC regime and pension arrears from the date of retirement in 7th CPC regime.

Conclusion

The Pay and Pension of senior NCOs/JCOs, Lt Cols, Cols and Brigs & equivalents got substantially enhanced, as per their aspirations, after that fateful discussion in PMO in 2016. The pension resolution of Gen officers now achieved is a culmination of concerted all round   efforts and thankfully a case of “Justice delayed but not denied”. However, the Pay resolution of Gen officers is only partial as of now; the irony being that pension which is a derivative of pay has been enhanced without pay being first enhanced to corresponding level, another untenable situation!!   Resolution of the problem just requires a one line order of MoD to annul the pay cap of Rs 2,25,000 imposed on General officers.  Once this order is issued, the Tortoise would have once again decisively overtaken the Hare. The whole saga is also a tribute to the patience of Gen officers and their equivalents who have silently suffered acute injustice but have never allowed pecuniary benefits to overshadow their sense of duty and responsibility. Meanwhile, Cols and Brigs and their equivalents in the three Services can rejoice, having ascended the Pay and Pension Summit.

 

Lt Gen KK Aggarwal, AVSM, SM, VSM (Veteran)

TAILPIECE (By Surjit)

I am tempted to add the table of salaries admissible to our ancestors during the days of the British rule and for a few years after our independence. I was surprised to learn that the officers commissioned from the IMA were paid much less than their comrades trained in the UK. And this continued until 1969, when the last of the KCIOs retired. My study of this subject leads me to the conclusion that it is impossible to create a wage structure which is fair and equitable. And that is the reason why it is necessary to institute periodic review of the salary structure. In some countries, the wage tables are revised every year, Bill Gates may have averred:

Pay and promotions are unfair. Get used to it!