The revenue budget of the defence services is likely to go up 3.2 times in the next Budget if the recommendations of the 6th Pay Commission are accepted.
On an average, the services had recommended a salary hike of up to 4.5 times. They had also sought a five-and-a-half times increase in counter-insurgency allowances. They had expected an increase of 3.8 times. The increase in salaries that has been granted is 3.2 times. Allowances, by and large, have been doubled.
Earlier, a lieutenant at entry point would get Rs 8,650, excluding dearness allowance. This has been more than doubled to Rs 27,000. The salary increases progressively up till the rank of Brigadier, who, when he picks up his rank, will now get Rs 30,000, up from Rs 17,850.
A long-standing demand of the defence services that the way their work is viewed be changed has been accepted but only in part. Successive pay commissions had sought to impose a parity between the civil services and the defence services.
However, the defence services argued that this approach was essentially flawed and that their pay should compensate them for the hardship associated with their jobs.
Therefore, they had sought a military service pay (MSP) by way of compensation for all ranks. An allowance like this is given to virtually all armies in the world, including the British Army, which calls it the 'X' factor, the Army said in its deposition.
The Sixth Pay Commission does provide for an MSP, a fixed sum of Rs 6,000, regardless of rank. This amount will be paid only till the rank of Brigadier. Persons Below Officer Rank (PBOR) will get Rs 1,000 per month as MSP.
"The military service pay will meet the two major demands of the defence forces, that is, a parity with the civilian posts with a distinct edge to compensate them for hardships and grant of military service pay.
This is in recognition of the fact that PBORs retire when they are relatively young and their training can be gainfully utilised elsewhere. This, the commission argued, would reduce the pension burden on the services.
However, the catch is that once they join the paramilitary organisations, their pension is only 40 per cent of the salary last drawn. The services had wanted this figure to be 75 per cent.
The Pay Commission's treatment of officers above the rank the major general and equivalent suggests a little more than doubling of salaries but with a fixed upper limit. At present, major generals and equivalent are entitled to a salary of Rs 18,400-22,400.
This has been increased to Rs 39,200 to Rs 67,000 with a rank pay of Rs 9,000. In the case of lieutenant generals, the pay band is the same but with a rank pay of Rs 11,000.
However, the upper limit for the salary is fixed. With 150 serving lieutenant generals in the Army alone, the fixed upper ceiling would suggest a level of income stagnation, more so as major generals and lieutenant generals are not entitled to military service pay.
"We tried to persuade the government to look at our work as distinct from the civil services and had argued that equivalence in rank should not dictate parity in pay. But previous pay commission overlooked our argument, and so has this one" said Lt Gen Vijay Oberoi, former vice-chief of army.
The service Chiefs will now get a salary of Rs 90,000 (fixed) up three times from Rs 30,000 (fixed) earlier.
