Report of the Sixth Pay Commission for the Armed Forces

IS IT A SOLUTION OR A PART OF THE

PROBLEM?
Maj Gen (Retd) Surjit Singh

A VOICE OF THE CHILDREN OF A LESSER GOD

Preamble

Freedom of speech is a fundamental right of all Indians. However, our

twelve lakh soldiers have voluntarily surrendered their birthright to
defend the integrity of the nation. These men in uniform are also
forbidden to form unions or associations, and were denied
representation in the recently concluded sixth pay commission.
Since their lips are sealed, they look dumb. But they have feelings and
have been expressing their anguish through e-mails, phone calls and
visits. This paper is based on what I have gathered from hundreds of
nameless and unknown soldiers. It is a voice of the voiceless.

The Job of Pay Commission Cells Has Just Begun!

The Sixth Central Pay Commission has finished its work and its
honorable members have moved on in life. But for the Pay Cells of the
three Services, their main task has just begun! I should know, because
I have gone through this tortuous process not once, but twice. Reams
of paper will be written and countless hours will be spent in needless
meetings to evolve ‘consensus’ on contentious issues. Much of this
unproductive effort could have been saved if the Service Chiefs’
suggestion to include a member on the Commission had been
accepted. They were told that ‘since inclusion of a military
member would lead to similar demands from other services, it
was not possible to accede to their request’ It is understood that
in the same communication, the Chiefs were assured that the concerns
of the military would be suitably addressed by the Commission. We
can, however, see nothing in the report to suggest that any of our
major problems is likely to be solved by the dispensation contained in
this venerable tome. Mercifully, the Government is empowered to
modify or alter the recommendations of the report, if it deems it fit to
do so. Some radical changes were made by the governments,
during the implementation of the awards of the Fourth and
Fifth Pay Commissions.

The Acid Test of a Compensation Package

Long before these six Pay Commissions, Lord Islington had postulated,
in his report submitted to the Crown in 1912 that “The only safe
criterion is that the government should pay so much and so
much only as is necessary to obtain recruits of the right stamp
and to maintain them in such degree of comfort and dignity as
will shield them from temptation and keep them efficient for
their term of engagement.” This dictum has three elements:
attraction, retention and motivation. Our current salary structure fails
on all three counts, and we looked up to the Pay Commission to
remedy the situation . What has been given to us is likely to create
more problems than any which it might solve. In their present form,
the recommendations are so warped that I have publicly dared
the government to implement the report without correcting the
imbalance . I fear the worst, if the government fails to see
reason.

The ‘Mouse-trap’ Analogy

Just as the report was being finalized, news came in from the NDA and
the IMA that the January 2008 courses at both these institutions were
heavily under subscribed. The commission came under heavy pressure
to make the service attractive, and they chose to focus their attention
at the entry point. And so, an all out effort was made to improve the
pay package of greenhorn entrants into the Armed Forces. For reasons
that we shall see later, they could not extend the same benefit to the
middle level officers, who want to quit service for greener pastures
soon after they complete twenty years service. The pressure to seek
pre-mature retirements is therefore likely to mount, and since
it will not be able to release all of them, the military will
become a virtual ‘mouse-trap’. It needs to be noted that there is
nothing more damaging for the image of an organization than its
failure to relieve an officer who does not wish to serve. It amounts to
‘reverse’ conscription and that is poisonous for service. A disgruntled
officer de-motivates others, specially his juniors. Ours is a voluntary
force, and it must remain so, in letter and spirit. If an officer
puts in his papers, he must be released as soon as possible,
unless he is serving the mandatory period specified for
specialized training.
Core Issues

A comprehensive list of anomalies in this report can fill a book, but

there are a few issues which are so central to the process that they
need to be addressed at the highest level. I have received scores of e-
mails, telephone calls and messages and with the help of a few
friends, I have identified five core issues which the government must
resolve before adopting the ‘Resolution’ These are enumerated in the
succeeding paragraphs. The recommendations are for all the three
services. However, to save effort and print space, I have used the
Army ranks. No disrespect is meant to the Navy and the Air Force.

MILITARY SERVICE PAY (MSP)

A Recognition Long Overdue

Through the grant of the MSP, the Pay Panel has acknowledged the
intensity of the rigors of service and the deprivations suffered by
soldiers. This element of pay is granted in some countries as the ‘X’
factor. We welcome this reform. However, there are a few aspects of
the report on this count, which are totally unacceptable, and these
are:

o MSP has been defined as a part of ‘pay’ for all purposes,

but it has been treated like an allowance for its date of
applicability. Now, since all those services who do not have
this element will receive their arrears from 1.1.2006, the
soldiers will be unfairly deprived of this benefit. This, in my
view, is grossly unfair. MSP has to be admitted
retrospectively, wef 1.1.2006
o The rates of the proposed MSP seem iniquitous. Officers
from Lt to Brig will get Rs 6000 pm, members of the
Military Nursing Service (who are NOT military officers)
have been granted Rs 4200 pm, while the uniform rate
fixed for the JCOs and OR is Rs 1000 pm While we are fully
conscious of the financial effect of this dispensation, the
disparity appears to be somewhat skewed. The rates for
the PBOR merit a re-consideration, since this issue may
arouse strong passions.
o All elements of the ‘X’ factor are just as applicable to
general officers as they are to their other younger
comrades. It may also be recalled that all other allowances
like the NPA, Technical pay and the Field Service
 Concessions are granted to general officers. Flying
allowance is also admitted, though at a slightly lower rate.
There is, therefore, no justification in denying this
dispensation to the four hundred odd generals,
admirals and air marshals .
o

PAY SCALES OF OFFICERS

The Cardinal Points

There are some traditional points of linkage of the officers’ pay scale
with civil servants. At start point, the military begins with a slight edge
over the civil servants, and at the apex level, the general officers are
equated with the bureaucrats in exact accordance with the ceremonial
table of precedence. The corner stone of this is the linkage between
the Joint Secretary and Maj Gen. This paradigm worked satisfactorily
when the ratio disparities were large, but became difficult when the
gap was narrowed. As an example, after the Third Pay Commission,
the starting pay of a 2/Lt was Rs 750 and the Maj Gen got Rs 2500-
125-2750. The Fourth Pay Commission narrowed this differential. The
entry level was raised to Rs 2300 and the Maj Gen was granted Rs
5900-200-6700. Thus, the ratio came down from 3.33 to 2.56. This
left insufficient room to accommodate the seven ranks from 2/Lt to
Brig. And so an animated debate ensued between the military officers
and the civil servants.

Promotion Prospects.

In the services, much less than half the officers rise to the unit
commander’s rank. The pyramidal structure beyond that point is
extremely narrow. No more than 10 percent of the entrants become
Brigadiers and the probability of promotion to the general ranks is a
miniscule three to four percent. The two star rank comes to the
blessed ones after at least 32 years of service. On the other hand,
nearly all the direct entrant civil servants attain the Joint Secretay’s
level after 15 to 18 years. Despite all the cadre reviews, the military
has not been able to match their progression. Meanwhile, many other
departments also started vying for the coveted senior posts, and now
there is no department in the country, however small, which does not
have at least one officer in this scale. If a census is carried out, it
might reveal that there are at least ten thousand personages
who draw the major general’s pay scale! It is no secret that in
military, the ‘selection boards’ for promotion, are in effect,
‘rejection boards’ because the selection is based on the number
of vacancies. Some very meritorious officers are over-looked. To
resolve this issue, a solution was found, where in officers up to the
rank of Brig were granted ‘rank pays’ and when put together, the start
of the scale of Brig became higher than the Joint Secretary’s scale.
And in this way, this obnoxious imbroglio was resolved. Even though
the civil servants were uncomfortable with this situation, The Fifth Pay
Commission

granted scales, which could accommodate the imperatives of the

military. In the latest edition, all officers are entitled to three
stagnation increments, which also count for determining pensions.
Thus even though the pay scale of the JS and the Maj Gen is
the same, viz, Rs 18400-500-22400, the situation on the
ground is such that no Maj Gen actually draws the minimum of
his scale. Taken together with the stagnation increments, the actual
terminal salary (inclusive of rank pay) of officers, is as follows:

o Lt Col 15100-400-18700 With stagnation

increments, this becomes 19900
o Col 17100-450-19350 With stagnation increments
he reaches 20700
o Brig 19100-450-20450 With stagnation increments,
he can reach 21800
o Maj Gens usually start at the top of the scale and
earn one or two increments

Since pensions are derived from the pay last drawn, nearly all officers
go home with a pension which falls within the Joint Secretary’s scale,
their status equations, notwithstanding. The pay relativities after the
Fourth Pay Commission (1986) were also similar. The scale of the JS
was 5900-200-6700. The Brigs got 6150-6300 and were entitled to
two stagnation increments. Cols and below were on an integrated pay
scale, while the. Maj Gens usually started at the top of the scale.

The Proposed Scale

The Sixth Pay Commission has come out with a radical change in the
entire process of progression and ‘scales’. The increments are now
linked with performance and will be 2.5% while twenty percent high
performers will be able to earn 3.5% of their pay as the annual
increment. The scales have been constructed as per the
template of the civil service career progression. Common pay
scales have been evolved for discreet levels and, as before, fixed
scales have been specified for the two apex posts, viz, army
commander and the service chiefs. And these scales have been
transposed for military officers as per ‘functional relativities’. The
fixation formula is such that none other than the maj gens will ever be
granted the upper scale. Simultaneously, the generals’ scale (PB-4) is
so long that no general officer will ever reach any where near the top
of his scale, while all or most of the civil servants will retire at a point
close to the pay of the Secretary to the Government. Very
appropriately, some one has observed that, that these scales are of
the IAS, for the IAS and (drafted) by the IAS. The transition puts
the service officers to such a great disadvantage that I see a grim
battle brewing. And this time, its resolution may not be as simple as
it was during the last two times. The services are likely to seek
transition parity as per which the minimum benefit at the start
point of the different ranks will be at least in the ratio of three
times, and that is a very fair aspiration, considering the
dispensation granted at the top and bottom of the new officers’
pay scale.

Civilian Control of the Military

The civil servants argue that it is imperative for the pay scales to
reflect the functional parities with the men in uniform. They love to
hate Brigs, since they do not have a direct equivalent in the
civilian hierarchy. A Joint Secretary, dislikes discussing a case with a
Col, no matter how well informed he may be. And these hierarchical
levels are of enormous significance to them. While I foresee a head on
collision and a deadlock on this very vexed issue, I seek answers to a
few questions:

• The Brigadiers have now been drawing more pay than Joint
Secretaries for about 22 years. Cols and even Lt Cols have been
breaking in to this ‘forbidden territory’ Has this, in any way,
diluted the civilian control over the military?
• The attractiveness of the military has plummeted to an all time
low. We are short of more than 11,500 officers and selected
candidates have declined to join the academies. The new
scales will make things worse. Is that acceptable to the
Nation?
 • Pensions derive from the pay last drawn. So the depression
will perpetuate, until the ‘problem’ dies a natural death
(pun intended). Will that be fair?

Performance Related Increments

The commission has suggested that twenty percent of the ‘high

performers’ be given an increased increment at the rate of 3.5%. This
administrative reform will create more problems than any which it
might solve. We already have enough measures to promote efficiency
and performance by way of rewards and punishments. It is also very
difficult to quantify performance. Therefore, if this proposal is
implemented for civilians, we suggest that this benefit be
spread over the entire body of military officers, and their
annual increments be admitted at 2.7% of pay to all officers.
This figure is derived by the simple mathematical calculation.(20 x 3.5
+ 80 x 2.5) / 100 = 2.7.

THE ONE-RANK-ONE PENSION IMBROGLIO

The Genesis of the Issue

When salaries are revised, the benefit accrues to all soldiers,

irrespective of when they joined the service. However, the revision of
pensions is an exception. By 1985, when I first studied the case,
there were fourteen categories of pensioners, depending on the
date of their retirement and whether or not they had opted for merger
of some elements of their pay. A high level committee was appointed
under the chairmanship of Shri KP Singh Deo, to examine the
possibility of simplifying this complex problem. But it was found that
the financial effect of this administrative reform was beyond the ability
of the government to bear. There after this issue became the ‘battle
cry’ of the ex-servicemen. In principle, all governments have agreed
that this is a desirable step. There are two reasons why this has not
been done. One, because it costs a lot of money and the other,
because a similar demand might be made by civilian pensioners.
However, we moved closer to this goal through periodic revisions. And
by the end of the Fifth Pay Commission, we were left with only two
kinds of pensioners; pre-1996 retirees and those who retired after that
date. The cases of the past pensioners are rarely taken up seriously by
the serving top brass. Old fogies have zero nuisance value, and
have neither the strength nor the energy to ‘fight’ for justice.
This Commission has rejected this case summarily, but paid some lip
service to the very old pensioners.

A Gift for the Great Grand Fathers

To gain the blessings of the octogenarians and nonagenarians the

Commission has recommended that the over-80 pensioners be granted
an additive element, depending upon age. While it remains to be seen
whether the government accepts this suggestion, it seems to me that
this benefit will accrue more to our civilian colleagues than the
soldiers, since the longevity of the combatants is lower. Unconfirmed
studies suggest that within the military, the officers outlive JCOs who,
in turn have a longer life expectancy than Sepoys. It would be
interesting to find out as to what proportion of civil and military
pensioners will qualify for this largesse.

The Road Ahead

The Congress president, Ms Sonia Gandhi had supported the one-rank-

one-pension demand and during the election rallies in for the current
Lok Sabha, and this was a part of the Congress manifesto. However,
the Commission has not conceded this demand, and it remains to be
seen whether the government will re-open the issue, in this election
year. As for now, the Commission has prepared a table for revising
pensions based on a formula which they have devised for the purpose.
The benefit which accrues to the past pensioners is unlikely to
bring a smile on the wrinkled faces.

PERSONNEL BELOW OFFICER RANKS (PBOR)

Pay Grouping

The soldiers were divided into eight pay groups when we joined
service. Later, these were re-grouped into five bands, and after the
Fifth Pay Commission, the government created a three group structure
wef 9 Oct 1997. The Sixth Pay Commission has reduced that to just
two groups, by merging the Y and the Z groups. Thus all trades from
the high end technicians to the combat soldiers and the lowly
masalchies and safai wallas will be in a single pay group. While this
may be good for reducing disparities, it remains to be seen
whether this measure will be well received by the rank and
file.

Terminal Benefits of PBOR

Some radical reforms have been suggested in the determination of the

pensions and calculation of commutation value. Both these measures,
if accepted, will lead to substantial savings to the State. The
Commission has also recommended lateral absorption of soldiers into
the police and the Ministry of Defense. We are of the opinion that the
more difficult part is the implementation of proposals related with
resettlement. They get glossed over, since it involves co-ordination of
several ministries. Unlike the USA, we do not have a systematic
Transition Assistance Program (TAP) for the veterans.

STIPEND FOR OFFICER CADETS

A very well reasoned case was made out by the services for the grant
of stipend to the officer cadets at the service academies. It was argued
that recruits for the enlisted ranks are admitted full pay and
allowances, when they join training centers. Similarly all entrants into
the government jobs are paid while they are under training. It is also
understood that officer cadets at the West Point in the USA are paid
salaries all through their four year course, and even the Pakistan
Military Academy admits salaries. In our case, we have a serious
problem of attraction in the officer cadre, and this seemed to be an
inexpensive and easy method of overcoming the problem. The
Commission has, however, rejected the proposal on the ground
that since the cadets are educated at the government expense
and they receive degrees at the end of the course, they need
not be granted the proposed stipend. The argument does not
seem to be cogent. If this logic is extended to other areas, then pilots
who learn to fly on service aircraft and the technicians who are put
through diploma courses must also not be paid salaries while under
training. This proposal needs a re-examination in the light of the
fact that in many countries, where military service is as
unpopular as it has become in India, lump sum payments are
made in the form of ‘enlistment bonuses’ We could consider
the stipend to fall under that category.

THE SUMMING UP

The report generated some cheer on the first day, when it was
presented to the Finance Minister. The press made it out to be a forty
percent bonanza, with two years of arrears as part of the package.
But as the details trickled in our ‘great expectations’ began to
melt, until they were ‘gone with the wind’. Corporate salaries
have shot through the roof, and living standards have risen. This time,
there is one more problem. For the middle level officers, who form the
bulk of the force, the gain is very meager. and if the MSP is admitted
only prospectively, their arrears will drop to a pittance. At the upper
end, general officers have been fitted into such long scales, that they
will never reach its top. To make matters worse, a yawning gap has
been created between the pay of the handful of Army Commanders
and the other Lt Gens. The absence of a service member can be
perceived in every page of the report as it pertains to the defence. All
in all, if I were to compare the report of this Pay Commission with the
previous two with which I was associated, I would say that this one
has been the most insensitive towards the soldier. There is a
visible tilt in favor of the civil servant.

Now we also know why a service member was not acceptable

to the government. It was not the political bosses, but the
bureaucrats who torpedoed the suggestion.

A Tail Piece

It is customary for the service chiefs and their senior colleagues to

visit military stations and address officers on the nuances of the pay
package granted by the government after every pay commission. This
time, the logic of the report of the commission appears to be so
complex and convoluted that it is beyond the comprehension of the
best amongst us. It is, therefore, suggested that the honorable
members of the Pay Panel be requested to go to a few selected
field units and let the soldiers receive the benefit of their
wisdom and sagacity, first hand.

The author was a member of the Pay Cell of the army for the Fourth
Pay Commission during 1983-88 and the Chairman of the cell in 1996-
97. He has written a book on salary systems titled, “Wage Down
the Ages” Published by Lancer International in 1989. e-mail :
surjiteme@gmail.com