7th Central Pay Commission (CPC) and Defence Forces

Central Pay Commissions in India are constituted every ten years to review the principles and structure of emoluments of central government employees and recommend changes.The 7th Central Pay Commission (7CPC) which was constituted in February 2014 to review the principles and structure of emoluments of all central government civilian employees including defence forces, submitted its report on 19 November 2015. The Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) government accepted the recommendations of the pay commission including those affecting the armed forces with minor modifications, and notified implementation orders on 25 July 2016, and 5 September 2016.

The government decision to implement the recommendations of 7CPC affecting armed forces pay, rank parities, allowances, without addressing the major anomalies, did not find favour with the armed forces. On 7 September 2016, the head of the armed forces, after conveying their concern on the "unresolved anomalies" to the government including to Narendra Modi, the Prime Minister, and Mohan Parrikar, the Defence Minister, took the unusual step of informing their formation and units that they were "constrained to request the government to hold implementation of 7th CPC award in abeyance in view of the anomalies which need to be resolved". The anomalies identified by the armed forces were on account of use of different principles, policy, and formula by the 7CPC for determining armed forces pay, allowances, level, rank equivalence, pension, and status in comparison with the civil services, including defence civilians, police and intelligence services, which they say is at variance with historical parities. The head of the three armed forces, following assurances at the highest level that anomalies affecting armed forces pay, pension, allowances, rank parity, and status would be addressed, issued instructions on 14 September 2016 to their commands to implement the government decision.

Implementation of 7CPC's recommendations by the government affects the organization and rank structure of the armed forces, and the pay, allowances and pension, of 13,86,171 armed forces personnel.^{page 105, para 6.2.2[3]}

Since the 4th Central Pay Commission (1986), when the concept of rank pay was introduced for the armed forces, pay commission recommendations affecting armed forces pay, and status, relative to civilian government employees, including the police, which wear rank badges similar to the army, implemented by successive government becomes cause of disappointment and disaffection in the armed forces.

...
Wikipedia