DPE clarifies pay fixation for Defence officers in CPSEs

Emoluments to follow Defence notifications; allowances on IDA Basic Pay + DA

The Department of Public Enterprises (DPE), Ministry of Finance, has issued a clarification on pay fixation for officers from the Defence Services who join Central Public Sector Enterprises (CPSEs) on permanent absorption. The Office Memorandum (OM) aligns the interpretation of “emoluments” used in an earlier DPE order dated 14 December 2012 with current pay practices and removes ambiguity created by the now-obsolete Grade Pay regime.

What the order clarifies

The term “emoluments” in the 2012 OM was used specifically in the Defence context—with dissimilar pay scales—only for the purpose of pay protection when such officers move to CPSEs.
For Defence officers joining CPSEs, the definition of “emoluments” will be as per the pay implementation notifications applicable to Defence Services officers (for pay protection in CPSEs).
After initial pay fixation, other allowances in CPSEs will be computed on Basic Pay + DA (IDA scale) only—not on any Grade Pay concept, which is no longer in use.

DPE noted that the 2012 definition—“Basic Pay + Grade Pay + DA”—has become outdated with the abolition of Grade Pay. The present clarification ensures uniform application of pay protection and removes scope for divergent interpretations when Defence personnel transition to public sector roles.

View OM: