Review of Pay and Allowances of Armed Forces by Pay Commission

Minister for Defence replies in Lok Sabha regarding Reviewing pay and allowances of Armed Forces personnel – four critical questions answered

GOVERNMENT OF INDIA

MINISTRY OF DEFENCE

RAJYA SABHA

UNSTARRED QUESTION NO-1169

ANSWERED ON-08.03.2016

Reviewing pay and allowances of Armed Forces personnel

1169 . Shri Mahendra Singh Mahra

(a) when Government had decided to entrust the task of reviewing the pay and allowances of the Armed Forces to a Pay Commission in place of departmental Committee;

(b) what were the constraints for and circumstances before Government for such a decision;

(c) whether the terms of references for the Armed Forces and Civilians were same and why the pensions of Armed Forces Personnel were clubbed with Civilians; and

(d) whether mistake had been committed in 1973 by “Ex-parte Administrative Order” in the matter and why that cannot be corrected to treat Armed Forces Personnel a separate class?

ANSWER
MINISTER OF DEFENCE
SHRI MANOHAR PARRIKAR

(a) The Government entrusted the task to a Pay Commission in 1973, at the time of setting up of 3rd Central Pay Commission.

(b) The Government had set up a Post War Pay Committee in 1947, a departmental pay committee (Raghuramiah Committee) during 1959-60 and another Departmental Committee in 1967 for review of pay and allowances of Defence Forces Personnel. There was general discontentment amongst the Services with respect to the recommendations of these Committees. Thereafter, the Government decided to entrust the examination of structure of emoluments, including benefits in cash and kind and death cum retirement benefits of the Armed Forces to the 3rd Central Pay Commission.

(c) & (d): The terms of reference with respect to the Armed Forces personnel were different to the extent that the 3rd Central Pay Commission was not required to make recommendations on the conditions of service of the Armed Forces personnel. Though, the matters related to pension of Defence Service personnel was referred to 3rd Pay Commission, there has been no clubbing with civilians. The Commission felt that by and large, the principles followed by Armed Forces Pension Revision Committee (AFPRC) continue to be valid. The 3rd Pay Commission had considered the peculiar conditions of service and hierarchical set up of the Services, age of retirement, period of qualifying service pension etc. in respect of Armed Forces personnel. As such there has been no mistake in entrusting the matter to 3rd Central Pay Commission.
Source : Rajyasabha.nic.in