RANK PAY -FAQs
Q. How has the pay been revised on 01/01/86?
Ans. The following example illustrates the method of pay revision as per the judgment of Hon’ble SC.
| Fixation of pay as per SAI 1/S/87& high court verdict | |
|
Rank
|
Capt |
| 1.Basic pay(BP) on 31/12/85 | Rs .1300/- |
| 2.DA/ADA on BP and Int Relief | Rs.1650/- |
| 3.Toatal emoluments(1+2) | Rs.2950/- |
| 4.BPX20% | Rs.260/- |
| 5.TOTAL(3+4) | Rs.3010/- |
| 6.Rank pay (RP) | Rs.200/- |
| 7.Net emoluments(5-6) | Rs.3010/- |
| Pay in integrated scale as per sai | Rs.3100*+200(RP) |
| Pay to be revised (Court Judgment) | Rs.3300#+200(RP) |
| *stage next to 7 above #Stage next to 5 above | |
Q.2 I was Lt. Col. As on 01-01-1986 and retired on 01-08-95. I was promoted to the rank of Col on 05-06-1986 and Brig on 03-06-92. Therefore, I am entitled to get arrears of Rank pay @ Rs. 800/- per month w.e.f. 01-01-86 to 04-06-86,
@ Rs. 1000/- per month w.e.f. 05-06-86 to 02-06-92 and Rs. 1200/- per month w.e.f. 03-06-92 till date of retirement. I have been paid much less than that. How?
Some aspects to be made clear here-
Ans.
A. Your arrears are not directly proportional to either of the following-
a. Rank Pay of the rank held by you on 01/01/86
b. Your service after 01/01/86
c. Your seniority
B. Deduction of Rank Pay (made at the time of fixing pay in 4th CPC) was not necessarily equal to the Rank Pay of the rank held by the officer on 01/01/86. Therefore now after revision, the difference of pay one is going to get needs not be equal to the Rank Pay of the rank held on 01/01/86.
C. Even this difference diminishes and gets less when officer gets subsequent promotions or at the time of fixation in subsequent Pay Commissions. It is because officer’s Basic Pay is upgraded to the minimum of the scale of next rank (on promotion) or new scales (new CPC). Actually it becomes zero on 01/01/96 in most of the cases.
E.g.
Officer is Lt Col as on 01.01.86
|
Effective Date & Casualty
|
Before Revision
Basic Pay + Rank Pay
|
After Revision Basic Pay + Rank Pay
|
| 01-01-86 (4thCPC) | 4050 + 800 | 4650 + 800 |
| 01-06-86 (Incr) | 4200 + 800 | 4800 + 800 |
| 05-06-86 (Prom to Col) | 4500 + 1000 | 4800 + 1000 |
| 01-06-87 (Incr) | 4650 + 1000 | 4950 + 1000 |
| 01-06-88 (Incr) | 4800 + 1000 | 5100 + 1000 |
| 01-06-89 (Incr) | 4950 + 1000 | 5100 + 1000 |
| 01-06-90 (Incr) | 5100 + 1000 | 5100 + 1000 + 150 (Stag) |
| 01-06-91 (Incr) | 5100 + 1000 | 5100 + 1000 + 150 (Stag) |
| 01-06-92 (Incr) | 5100 + 1000 + 150 (Stag) |
5100 + 1000 + 200 (Stag) |
| 03-06-92 (Prom of Brig) | 5100 + 1200 | 5100 + 1200 |
Note 1 Even though Rank Pay corresponding to the rank held by the officer on 01/01/86 is Rs 800/-, the difference officer gets now is only Rs 600/-
Note 2 When the officer gets promotion to Colonel, his pay doesn’t get any hike (after revision now) as he was already drawing more than the minimum admissible to Colonel.
Note3 Pay in the revised scale and pre-revised scale becomes equal on the date of promotion of Brig. i.e. 03-06-92 in this case. Hence, no further arrears are admissible thereafter.
It is evident that with every promotion, the difference in Revised & Pre-revised Pay is reducing.
Q.3 Why no further increments have been admitted to me in ‘Revised Pay’ after my Basic Pay reached the scale of Rs. 5100/- w.e.f. 01-06-89? My Rank at that time was Lt. Col.
Ans During 4th CPC, Rs. 5100/- was the maximum scale admissible for the Ranks from Major to Brig. Maximum scale for Maj. Gen was Rs. 6700/- In case the Basic pay of any officer of the rank of Major, Lt Col or Col reached Rs. 5100/- during 4th CPC, i.e. between 01-01-86 to 31-12-95, the officer was entitled for only two Stagnation Increments which were admissible only after every two years. The rates of Stagnation Increments were Rs. 150/- and Rs. 200/- only. In case of Brigadier, three Stagnation Increments were admissible @ Rs. 200/-, Rs. 300/- and Rs. 400/-.
E.g.
1. In the case of Maj, Lt. Col. & Col.-
In the revised scale, if the officer reached Rs. 5100/- w.e.f. 01-06-89,
1st Stagnation Increment admissible w.e.f. 01-06-91 = Rs. 150/- per month
2nd Stagnation Increment admissible w.e.f. 01-06-93 = Rs. 200/- per month
No further Stagnation Increment will be admissible on 01-06-95 since only two Stagnation Increments are admissible to Major, Lt. Col and Col.
2. In the case of Brigadier-
In the revised scale, if the officer reached Rs. 5100/- w.e.f. 01-06-89,
1st Stagnation Increment admissible w.e.f. 01-06-91 = Rs. 200/- per month
2nd Stagnation Increment admissible w.e.f. 01-06-93 = Rs. 300/- per month
3rd Stagnation Increment admissible w.e.f. 01-06-95 = Rs. 400/- per month
Q.4 I and my batch-mate were both commissioned on the same date i.e. 20-12-70 and both were holding the rank of Major as on 01-01-1986. But I have been paid Rs.62145/- whereas my batch-mate has got Rs.1,96,878/-. How?
The arrears of Rank pay in respect of two Officers with the same Date of Commission and same rank as on 01-01-86 may differ due to
Ans.
1. Different dates of subsequent promotions.
2. How long the difference between ‘Due Pay’ and ‘Drawn Pay’ continues (refer to note 3 below W.2)
In general, officers who got better promotions have been drawing more pay.
Likelihood of the difference getting nullified before retirement in his case is much more than that in case of officer who got less/late promotions.
Since the arrears being paid now are the difference of ‘Drawn’ and ‘Due’, more drawn generally result in fewer amounts of arrears.
Illustration:
(i) Officer ‘X’
DOC – 20/12/70 DOR – 01/07/2000
Rank on 01.01.86 – Major
| Sr. No. | Effective Casualty Date |
Drawn (Old Pay) | Due (New Pay) | ||
| Basic Pay | Rank Pay | Basic Pay | Rank Pay | ||
| 1. | 01.01.86 4CPC | 3400 | 600 | 3900 | 600 |
| 2. | 01.03.86 Incr (Step-up) | 3500 | 600 | 4050 | 600 |
| 3. | 01.03.87 Incr | 3600 | 600 | 4200 | 600 |
| 4. | 01.03.88 Incr | 3700 | 600 | 4350 | 600 |
| 5. | 20.08.88 SUBPROM | 3900 | 800 | 4350 | 800 |
| 6. | 01.03.89 Incr (New scale) | 3900 | 800 | 4500 | 800 |
| 7. | 01.08.89 Incr (Old scale) | 4050 | 800 | 4500 | 800 |
| 8. | 01.03.90 Incr (New scale) | 4050 | 800 | 4650 | 800 |
| 9. | 01.08.90 Incr (Old scale) | 4200 | 800 | 4650 | 800 |
| 11. | 01.03.91 Incr (New scale) | 4200 | 800 | 4800 | 800 |
| 12. | 10.06.91 SUBPROM | 4500 | 1000 | 4800 | 1000 |
| 13. | 01.03.92 Incr (New scale) | 4500 | 1000 | 4950 | 1000 |
| 14. | 01.06.92 Incr (Old scale) | 4650 | 1000 | 4950 | 1000 |
| 15. | 01.03.93 Incr (New scale) | 4650 | 1000 | 5100 | 1000 |
| 16. | 01.06.93 Incr (Old scale) | 4800 | 1000 | 5100 | 1000 |
| 17. | 01.06.94 Incr (Old scale) | 4950 | 1000 | 5100 | 1000 |
| 18. | 01.03.95 Stag Incr (New scale) | 4950 | 1000 | 5100 + 150 | 1000 |
| 19. | 01.06.95 Incr (Old scale) | 5100 | 1000 | 5100 + 150 | 1000 |
| 20. | 01.01.96 5CPC | 15550 | 2000 | 15550 | 2000 |
Total Arrears – Rs 62,145/-
(ii) Officer ‘Y’
DOC – 20/12/70 DOR – 01/02/02
Rank on 01.01.86 – Major
| Sr. No. | Effective Casualty Date |
Drawn (Old Pay) | Due (New Pay) | ||
| Basic Pay | Rank Pay | Basic Pay | Rank Pay | ||
| 1. | 01.01.86 4CPC | 3400 | 600 | 3900 | 600 |
| 2. | 01.03.86 Incr (Step-up) | 3500 | 600 | 4050 | 600 |
| 3. | 01.03.87 Incr | 3600 | 600 | 4200 | 600 |
| 4. | 01.03.88 Incr | 3700 | 600 | 4350 | 600 |
| 5. | 01.03.89 Incr | 3800 | 600 | 4500 | 600 |
| 6. | 01.03.90 Incr | 3900 | 600 | 4650 | 600 |
| 7. | 25.08.90 SUBPROM | 3900 | 800 | 4650 | 800 |
| 8. | 01.03.91 Incr | 4050 | 800 | 4800 | 800 |
| 9. | 01.03.92 Incr | 4200 | 800 | 4950 | 800 |
| 10. | 01.03.93 Incr | 4350 | 800 | 5100 | 800 |
| 11. | 01.03.94 Incr (Old scale) | 4500 | 800 | 5100 | 800 |
| 12. | 01.03.95 Stag Incr (New scale) | 4650 | 800 | 5100+150 | 800 |
| 13. | 01.01.96 5CPC | 13900 | 1600 | 14700 | 1600 |
| 14. | 01.03.96 Incr | 14300 | 1600 | 15100 | 1600 |
| 15. | 01.03.97 Incr | 14700 | 1600 | 15500 | 1600 |
| 16. | 01.03.98 Incr | 15100 | 1600 | 15900 | 1600 |
| 17. | 01.03.99 Incr | 15500 | 1600 | 16300 | 1600 |
| 18. | 01.03.00 Incr | 15900 | 1600 | 16700 | 1600 |
| 19. | 01.03.01 Incr | 16300 | 1600 | 17100 | 1600 |
| 20. | 01.02.02 Retire | 0 | 0 | 0 | 0 |
Total Arrears – Rs 1,96,878/-
NOTE: In the first illustration, the difference in Pre-revised and Revised pay becomes zero on 01-01-96, i.e. the effect terminates w.e.f. 01-01-96; whereas in the second illustration, the difference in Pre-revised and Revised pay continues post 5th CPC till the date of retirement. Consequently, in the 2nd illustration the amount of Encashment of leave will also undergo a change as last Basic Pay before retirement has undergone a change.
Q.5 Why the difference of Pay in my case is decreasing every year post 01-01-86 as per the ‘Due-Drawn’ statement issued to me?
Ans. During 4th CPC, if the officer’s Basic Pay at the time of promotion was less than the minimum of Basic Pay of the next Rank, his Basic Pay was upgraded to the minimum of next Rank. But if his Basic Pay had already crossed the minimum of Basic Pay of the next Rank, his pay would not increase on promotion. In that condition he would get only Rank Pay on next Rank.
Illustration:
1. Minimum Basic Pay admissible to Lt Col = Rs 3900/-
Basic Pay of Major ‘X’ at the time of promotion to Lt Col = Rs 3700
On promotion to Lt Col. Basic Pay admissible = Rs 3900
Basic Pay of Major ‘Y’ at the time of promotion to Lt Col = Rs 4050
On promotion to Lt Col. Basic Pay admissible = Rs 4050 (no change)
1. Minimum Basic Pay admissible to Col = Rs 4500/-
Basic Pay of Lt Col ‘A’ at the time of promotion to Col = Rs 4350
On promotion to Col, Basic Pay admissible = Rs 4500
Basic Pay of Lt Col ‘B’ at the time of promotion to Col = Rs 4800
On promotion to Col, Basic Pay admissible = Rs 4800 (no change)
Since the pay-revision as per the court judgement in many cases, results into the officer crossing the minimum of the pay of the next rank, his pay (in ‘due after revision’) does not get any increase, whereas he might have got (in ‘drawn before revision’) a jump to the minimum of the next rank. Thus the difference between ‘Due now’ and the ‘Drawn earlier’ becomes less.
Q.6 Why Income Tax on my arrears has been calculated @ 20%, whereas other Officers’ arrears have been paid after deducting Income Tax at only 10% rate.
Ans. In case PAN of Officer has been received in the office of PCDA (O), the IT deduction has been calculated @ 10%. Since your PAN has not been received in this office, I.T. has been deducted @ 20% in your case. In all such cases, officers are requested to claim the same from IT Department after filing IT return.
Q.7 When will I receive my Form-16 (Tax deduction at Source Certificate) regarding payment of arrears?
Ans. The generation of Form-16 regarding payment of arrears is under process.
The same will be uploaded on the website in due course.
Q.8 Are the Officers, in receipt of Gallantary Awards/Disability Pension/Tribal Officer residing in North East Region, entitled for exemption in Income Tax on arrears of Rank Pay at source?
Ans. No. The exemption in Income Tax at source cannot be allowed on payment of arrears of ‘Rank Pay’. The refund of Income Tax may be claimed from IT Department after filing IT return.
Q.9 Why have the Gratuity and Encashment of leave on retirement not been revised while calculating the arrears of Rank Pay ?
Ans. The Death-cum-Retirement Gratuity is payable by PCDA (P), Allahabad and hence will be revised by them.
The Encashment of leave has been revised by PCDA (O) in all affected cases. However, the difference in amount of Encashment of leave is admissible only in cases where the differene in ‘Due Pay’ and ‘Drawn Pay’ continues till the date of retirement. In case the ‘Due Pay’ and ‘Drawn Pay’ of an Officer reaches same stage any time before retirement (i.e. on any date of promotion OR on 01-01-96 OR on 01-01-2006), there will be no change in the amount of Leave Encashment already paid.
Q.10 When will my LPC-cum-Data sheet be revised and sent to PCDA (P), Allahabad for revision in PPO?
Ans. The revised LPC-cum-Data sheet will be forwarded to PCDA (P), Allahabad shortly.
However, the same is not applicable in all cases. In case there is no difference in ‘Due pay’ and ‘Drawn Pay’ at the time of retirement, no revision will be required to be carried out in the original LPC-cum-Data sheet.
Accordingly, PPO will also not to be revised in such cases.
Q.11 I have not got arrears for the period of Re-employment?
Ans. No arrears have yet been calculated for the period of re-employment.
Separate action in respect of Re-employed officers will be taken.
Q.12 Has part payment been made by PCDA(O) because the amount admitted to me seems to be very little?
Ans. No. the arrears have been calculated and paid in full to each and every officer.
Q.13 My ‘Drawn statement’ uploaded on the website is incorrect as it differs from the actual drawn pay as per original statements of accounts available with me. How will this be rectified?
Ans. The ‘Drawn statement’ of all the officers are being reviewed and in case there is any discrepancy due to technical reasons, the same are being rectified suo-motto. The Officers are requested to wait for the revised ‘Due-Drawn’ statements which will be uploaded on website in due course.
Q.14 It has been intimated that my IRLA has been destroyed in PCDA (O) Office after expiry of retention period. What action will now be taken regarding payment of my arrears?
Ans. Some data required for calculation of arrears in case of Officers, whose IRLAs have been destroyed, has been received from IHQ of MOD (Army). Since the date is not sufficient for calculation of arrears, a proposal for approach to be adopted in such cases is under consideration of MOD. Orders of MOD are expected soon. Action will be taken on receipt of orders.
Source: https://pcdaopune.gov.in/NewsFlash/FAQ/index.html
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COMMENTS
Cdr(retd)C R Babu
Jul 15,2013
Sir,
I was a confirmed Lt.Cdr.(Major equvlant)as on 01 Jun 1986 and retired as Commander in Dec 1995.Was promoted as confirmed Commander on 01 Jan 1991.I received only Rs 27,400/-as mu arrears as rank pay based on Maj.Dhanapalan case.
Sir, I would like to know that Is an ex-serviceman who retired on 31-10-2008 is entitled to take the benefit of revised pension wef 24-09-2012. This is required for the information of many Ex-servicemen. Thanking you.
Hony Capt KL Saini, Panchkula
I retired on 30th April 1986 as Select grade substantive Wg Cdr. I have no idea how my arrears of Rank Pay being calculated. I have received no communication on this. My pension as on 1.1.96 is 6864.