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Tuesday, February 18, 2014

Ex-servicemen salary fixation!!

Many Ex-servicemen asking for clarification for thier fitment of salary in Bank.
Here is the latest clarification/circular issued by IBA/Govt.

You may calculate your fitment amount and represent to your bank, if u r eligible for an higher Pay.

Indian Banks’ Association
HR & Industrial Relations
No. HR&IR/CIR/2013-14/589/8764                                                                        January 30, 2014

To Chief Executives of Public Sector Banks
Dear Sir,
Pay Fixation of Ex-Servicemen Re-Employed in Public Sector Banks
We refer to our letter No. HR&IR/CIR/2012-13/76/589/5850 dated 6.9.2012 regarding re-fixation of pay of ex-serviceman re-employed in Banks on or after 1.1.2006.
2.            Keeping in view the fact that all the Public Sector Banks are enjoying autonomy in their HR matters, the Ministry of Finance, vide its letter dated 22nd March, 2013, requested IBA to frame uniform guidelines for fixation of pay of Ex-Servicemen upon their re-employment in PSBs, in consonance with the Government of India’s policy in the matter and the principle of fairness. The letter further stated that the system of re-employment should be reviewed comprehensively to allow Ex-Servicemen to have their pay protected upon re-employment in PSBs. IBA was requested to have these issues considered and examined in consultation with the PSBs and send their considered opinion/comments to the Ministry of Finance, Department of Financial Services for necessary action.
3.            Accordingly, IBA constituted a Working Group, consisting of three senior officers drawn from banks and prepared a report. With the approval of the Managing Committee at its meeting held on 6th June, 2013, the Report of the Working Group was sent to DFS for their consideration and to issue necessary guidelines. The Ministry of Finance, vide letter dated 19th July, 2013, advised IBA to take appropriate decision in the matter of pay fixation of re-employed Ex-Servicemen in PSBs as deemed fit. While doing so, IBA was asked to ensure that such pay fixation is in consonance with DOPT guidelines issued from time to time that all PSBs follow the guidelines uniformly to avoid disparity in pay fixation across PSBs.
4.            As desired by DFS, a “draft” guidelines to be issued to PSBs was sent to the DFS vide our letter dated 27th August, 2013 for their examination and their approval.
5.            Now, the Ministry of Finance, DFS, vide their letter dated 30th December, 2013 (copy enclosed), has advised that the draft guidelines prepared by IBA generally appear in order. However, before issue of these guidelines to all PSBs, it is desirable to ensure that no decision is contradictory to established Government Policy and that none of these are violative of DOPT or Ministry of Defence (MOD)/Ministry of Finance instructions on this subject.
6.            Draft guidelines, approved by the Ministry of Finance, Department of Financial Services with some suggestions were put up to the Management Committee of IBA at its meeting held on 28.1.2014 for approval. The Committee has approved these guidelines as per annexure enclosed for compliance by Banks.
All the Banks are therefore advised to implement these guidelines regarding pay fixation of ex-servicemen on their re-employment on or after 1.1.2006.
Yours faithfully,
         Sd/-(K. Unnikrishnan)
        Deputy Chief Executive
cc to:  Chief Executives of Private Sector Banks – For information.

Guidelines for Pay Fixation of Ex-Servicemen/Ex-ECOs/SSCOs Re-employed in Public Sector Banks on or after 1.1.2006
Fixation of pay of ex-servicemen in Public Sector Banks is governed by the guidelines/instructions issued by the Government of India from time to time. Accordingly, based on the Government Guidelines/instructions in force, issued vide DoPT O.M. No. 3/19/2009-Estt. (Pay II) dated the 5th April, 2010 and clarification given vide O.M. No. 3/19/2009-Estt. (Pay-II) dated the 8th November, 2010, fitment of pay of ex-servicemen / ex-ECOs/SSCOs, who have been appointed in the Bank on or after 1.1.2006 is to be done as under:
2.1          Ex-servicemen joining in workmen cadre
Pay fixation of an ex-serviceman would be through protection of pay plus D.A. drawn by him at the time of released from Armed Forces. As per the instructions issued by the Ministry of Defence vide their letter No. 1/69/2008/D (Pay/Service) dated the 24th July, 2009 and advised by DoPT vide OM No. 3/19/2009-Estt. (Pay II) dated the 8th November, 2010, pre-retirement pay has been defined as under:
(i)            In respect of re-employment taking place on or after 1.1.2006, pre-retirement pay for those who retired after 1.1.2006, means the pay in the pay band plus grade pay but inclusive of non-practicing Allowance (NPA) if any, last drawn before retirement.
(ii)           In case of officers who retired before 1.1.2006 and also those who retired after 1.1.2006 in the pre-revised pay scales without opting for the revised pay scales promulgated on or after 1.1.2006 the pay will be basic pay including stagnation increment and Rank Pay plus Dearness Pay and Dearness Allowance drawn at the time of retirement. As such, the figure of pay plus D.A. admissible in the Bank will be fixed with reference to this protection i.e. pay as mentioned above plus D.A. and relevant stage of the basic pay in the re-employed scale will be determined after deducting DA admissible in the Bank from the figure protected. For the purpose of fixation of pay on re-employment, the pay would mean the basic pay plus the special allowance /special pay as the case may be, attached to the re-employed post (where applicable). As the MSP has not been included in pre-retirement pay as per the definition given by the Ministry of Defence vide letter No. 1/69/2008/D (Pay/Service) dated 24.7.2009, the protection of the component of MSP in re-fixation of pay in Bank has been excluded. Moreover, the ex-servicemen on re-employment in the banks are allowed to draw entire pension i.e. entire pension is ignored and not reduced from the re-fixed pay. As such, they will get the benefit of the component of Military Service Pay (MSP), if any, in their pension from the Government.
(iii)          In addition to the pay so fixed, as aforesaid, pension and other retirement benefits may be allowed to be drawn. This will, however, be subject to limitation that the aggregate of re-employed pay and pension on re-employment of ex-servicemen would not exceed the minimum of the scale of pay of the General Manager in the Bank as per Ministry of Finance letter No. F4/1/98-SCT(B) dated 2.9.1998.
2.2          Ex-Emergency Commissioned Officer/Short Service Commissioned Officer – Joining in Officers Cadre
                Pay of an Ex-ECO/SSCO will be fixed at the minimum of the pay scale. Thereafter, he will be allowed as many increments as the completed years of service he has put in the Armed Forces subject to the condition that the total emoluments in the re-employed post do not exceed the total emoluments excluding HRA and CCA he was drawing at the time of his release from the Armed Forces. In case this total exceeds to total emoluments drawn at the time of release from Armed Forces, the basic pay in the re-employed post will be fixed at such a stage, where the total emoluments would be either equal or just less than the total emoluments he was drawing at the time of his release from the Armed Forces. The benefits of pay fixation as mentioned above will be available to those EX-ECOs/SSCOs who join in Junior Management Grade Scale-I (i.e. the lowest rank in Officers’ cadre). If the officer is inducted in a higher pay scale as compared to the lower scale applicable to officers in the Bank, it may be ensured that he gets at least the benefit in pay which would have accrued to him by giving him the weightage of the number of years of service put in as ECO/SSCO with reference to the minimum of the lowest scale i.e., JMGS-I.
                ECOs/SSCOs during the pre-commissioned training period are neither given the rank of Commissioned Officer nor they are allowed the scale of pay. Therefore, the period spent on pre-commissioned training by ECOs/SSCOs cannot be taken into account for the purpose of pay fixation on their re-employment.
2.3          Ex-Service Officer Joining in Workmen Cadre:-
                In terms of Ministry of Finance letter No. 202/8/7/86-SCT(B) dated the 22nd March, 1988, there is no bar to any Ex-Service Officer joining the workmen’s cadre in the Bank in which case his pay may be fixed as under:
(i)            In case where the entire pension and pensionary benefits are not ignored for pay fixation, the initial pay on re-employment shall be fixed at the same stage as the last pay drawn before retirement. If there is no such stage in the re-employed post, the pay shall be fixed at the stage below that pay. If the maximum of the pay scale in which a pensioner is re-employed is less than the last pay drawn by Ex-Service Officer before retirement, his initial pay shall be fixed at the maximum of the re-employed post.
(ii)           If the minimum of the scale of pay in which a pensioner is re-employed is more than the last pay drawn by him before retirement, his initial pay shall be fixed at the minimum of the scale of pay at the re-employed post. However, in all these cases, the non ignorable part of the pension and pension equivalent of retirement benefits as prescribed from time to time shall be reduced from the pay so fixed. The pay for this purpose will exclude compensatory allowances e.g., HRA, CCA, etc.
(iii)          Those ECOs/SSCOs who are appointed in clerical cadre in the Bank will also be given the benefit of number of years of service put in by them as ECOs/SSCOs with reference to the pay point corresponding to the minimum of the scale applicable to the clerical cadre/posts in the Bank.
(iv)         Ex-Servicemen who are graduates may be given increments for graduation irrespective of the fact whether they have passed graduation before joining the service of the bank or afterwards. However, if the ex-serviceman had been given some benefit for graduation which was reflected in the pay drawn by him while in the armed services, the fitment in the Bank’s scale has to be done after withdrawing such additional benefit and thereafter the two increments for graduation must be given.
(v)          An ex-serviceman whose qualification is treated as equivalent to that of a graduate is not be treated as a graduate to earn the benefit of increments in terms of Awards/Settlements. In other words this benefit will be available to an ex-serviceman only if he has passed civil examination equivalent to graduation.

File No. 4/3/2012-SCT(B)/Welfare
Ministry of Finance
Department of Financial Services
Jeevan Deep Building,
Parliament Street, New Delhi.
Dated 30th December, 2013
                The Chairman,
                Indian Banks, Association,
                World Trade Centre Complex,
                Centre-I, 6th Floor,          
              Cuffe Parade, Mumbai – 5
Subject: Alleged discrimination in the matter of pay fixation of Ex-servicemen re-employed in Public Sector Banks.
            I am directed to refer to your letter No. HR&IR/KSC/GOVT/589/7746, dated 27th August, 2013 sending therewith ‘Draft Guidelines’ regarding pay fixation of ex-servicemen /Ex-ECOs/SSCOs in a uniform way to avoid disparity in pay fixation across Public Sector banks and to say that draft guidelines generally appear in order.
2.            However, before issue of these guidelines to all Public Sector Banks, it is desirable to ensure that no decision is contradictory to established government policy and that none of these are violative of Department of Personnel & Training (DOP&T) or Ministry of Defence (MOD) instructions on this subject. Therefore, adding a supporting clause below each decision clarifying. “These provisions have been drawn in terms of GoI, DOP&T’s OM/MoD/DFS letter No. ……………… dated …………..” would be in the fitness of things. For example, “Definition of ‘Pre-retirement Pay’ is as per MoD’s letter No. 1/69/2008/D (Pay/Service) dated 24th July, 2009”.
3.            Further, the fact whether additional increments to ex-servicemen for acquiring graduation would also be available or not to those who are awarded ‘Certificate equivalent to Graduation’ by their previous employer also needs to be clarified. Proposed revised guideline should also include a para clarifying the concept of ‘not reckoning ‘MSP’ and ‘X-pay’ for the purpose of pay fixation in respect of those Ex-servicemen who have retired from the armed forces and re-employees in PSBs on or after 1.1.2006’.
4.            The date of implementation of these guidelines, prospective or retrospective and the mode of tackling effect of financial implications, if any also needs to be clarified.
5.            Keeping in view above suggestions, kindly issue necessary guidelines at the earliest.
Yours faithfully,
(J.S. Phaugat)
Under Secretary (Wel.)


vinod gupta said...

nice updation waiting for graduation increment since last 4yrs .now it will be settled

vinod gupta

Sudeepta Bose said...

Thanks sir for such great news. Can you please clarify What does NPA(Non Practicing Allowances) means in the topic?

venkat said...

Whether DA and Dearness Pay are to be considered for Pay Fixation for exservicemen re-employed in PSBs during Jan 1981. Banks have considered only Basic Pay and ignored both DA and Dearness Pay for fixation of pay. Kindly confirm whether Banks were correct as per applicable rules during Jan 1981.

Anonymous said...

Dear Mr Venkat,
During fitment if the DA portion is added then there is huge difference in fitment between the same dated joining and same rank with different discharge date. As they consider the DA while discharge and deduct from present DA which makes a lot of difference, i.e. in my bach of joining the SGTs of 2006 are fitted with BP with 9400/- where as SGTs of 2011 retired fitted with 15100/-. If the DA is not taken into calculation then the fitment for same rank retired ex servicemen will be same.
Debasis Sahoo United Bank of India

Sahidul Islam said...

Dear sir, Just one line can you state that those retired from service after jul 2009 whose MSP is reflecting in pension book, should they will get pay protection including MSP!

Anonymous said...

Dear sir,
please clarify, those Ex-servicemen retired during 2009 & joined in PSBs are illegible for MSP & X GP or not & what are the components of NPA(Non Practicing Allowances) means in the topic. sbi is not giving protection of MSP & X-GP pay

brahma said...


Ramesh Babu said...


Anonymous said...


I agree with you in principle but would you please clarify on dearness relief on pension that includes the msp and x pay would you justify to this effect when banks ask us to surrender entire da on pension .plz issue necessary guidelines ..

Thanking you

This comment has been removed by the author.
Anonymous said...

Sir, i took discharge in 2001,as sgt, and joined in sbi in 2013 feb,at age of 50yrs. Only after joining in sbi, i have realised the pay structure and the differences. It is heartbreaking to see, that i would not get any fitment benefit, including MSP . May be there will be around one thousand employees across all PSBs,of my nature of case in the whole nation, who joined the bank late,and getting half of total salary of fellow Ex servicemen,joined after 2006. Now a Multinational PSB such as SBI,does not have clarity about uniform salary structure.Comment please.

Amitabh Sharma said...

fixation of pay of ex-servicemen retired prior to 01.01.02006 and re-employed after 01.01.2006 is not instructed as per the guidelines given in the Para 3(v) letter no. DOPT O.M. NO. 3/19/2009 – Estt (pay-II) dated 05 Apr 2010 which is as follows- “Fixation of pay of personnel/officers who retired prior to 1.1.2006 and who have been re-employed after 1.1.2006:-- In the case of personnel/officers who had retired prior to 1.1.2006 and who have been re-employed after 1.1.2006, their pay on re-employment will be fixed by notionally arriving at their revised basic pay at the time of retirement as if they had retired under the revised pay structure. This will be done with reference to the fitment table of the Defence Service Rank/Civilian service post (as the case may be) from which they had retired and the stage of basic pay at the time of their retirement.”PLEASE GUIDE US WHAT TO DO.

anubhav said...

i retired with basic pay rs 12210 and grade pay rs 4200 and classifiation pay and gccb rs 540 total salary 16950 plus 72% da total salary (rs 29154 basic pay plus DA)excluding military service pay what would be my basic pay and total salary given by bank which i have joined on 01 apr 14

chand khan said...

khan said...
I retired on mar 2013 with basic pay 11550, grade pay 2800,x pay-1400,msp 2000,Dearness allowance @80% 14200 and classification pay 240 total grass to Rs 32190/-. I joined Andhra Bank on 02 Apr 2013. and my pay fixation done at a basic of 18500/- with two graduation increments and on 02 Apr 14 i got one icrement of 800/- and my basic reached to 19300/ but yesterday ie 26-4-14 i received a letter from head office of andhra bank that my basic has been revised as per IBA letter dated 12 apr 14 to not to consider msp in fixation and they refixed my basic to 16500/- and with one year icrement they fixed to 17200/-.Drawn eariers are to be paid back.Kumar sir can you guide me in this matter?what should i do. I didnt know how they are fixing basic any coresponding scale with grass to bank fitment pleas post. thanks alot.

suresh thalor said...

I would agree with observation of comments by Mr Amitabh Sharma of 14/04/2014 and would like to add here that the new policy issued by IBA on fixation of pay of ex-servicermen still bears anomalies particularly on Para 3(v) of DOPT order dated 5th April 2010 since hike in pay perks of defence personnel was2.86 times during 6th pay commission which is main reason their counterparts even being senior in age and service both who retired prior to 31 december 2005 get their pay fixed at lower stage.

Again there is no mention of counting of defence service for granting increments for total service rendererd by EC and SSC whereas this is there for clerks and skts in DOPT order of 1986 (Para 15 refers).

Welfare department in their letter while clearing latest policy to IBA have also mentioned that their should be no deviation of DOPT, Ministry of Defence and DFS orders in the policy. which still persists and needs rectification


Anonymous said...

Pay protection of ex servicemen on reemployment

March 21, 2013 by admin 4 Comments



ANSWERED ON-20.03.2013

Pay protection of ex servicemen on reemployment


(a) whether Government of India protects the last pay drawn by ex-servicemen on re-employment in Civil Services / Public Sector Banks / SBI / RBI / LIC and other autonomous bodies under Central / State Government;

(b) if so, then what are the elements / constitutes of the pay drawn by ex-servicemen during Armed forces service are being protected / reckoned / counted for their pay fixation on re-employment; and

(c) whether instructions / guidelines in this regard have been issued and being implemented by Public Sector Undertakings / P.S. Banks / SBI / LIC / RBI and other autonomous bodies of Central / State Government?



(a)&(b):As per the instructions issued by Department of Personnel & Training from time to time, no protection of the pay held by the Ex-Servicemen (ESM) prior to retirement is given and he is allowed to draw pay only in the prescribed pay scale / pay structure of the post in which he is re-employed.

(c)Instructions / guidelines in this regard are issued from time to time by the respective nodal administrative ministries and it is the responsibility of the respective organizations to implement the same. Instructions / guidelines regarding pay rules of the State Government and other autonomous bodies under the State Governments are issued by the respective State Governments.



Dominic Lal said...

Sir, I am Dominic Lal who got discharged from Indian Air Force on 31-05-2005 and joined corporation bank on 03-10-2013. On applying for pay fixation I was informed that I am not eligible for that. Is it true ..? Or else please guide me for further action. My e-mail id is As per my information new IBA guidlines are favouring us on this, and some people have already received it.

RAO GV said...

dear dominic lal .....i am GVNS RAO ur entry mate..
i have solution for u r querry...we shall discuss mail id

Anonymous said...

Sir, All above letters describe pay protection for joining workmen cadre,by PBOR or SSCO or Officers but vice versa Is there any benefit of PBOR joining as Officer (JMGS Scale I) like previous service counted for Increments or Seniority????

RAO GV said...

Yes there is policy.. ishall let u know shortly with all relevant doc

member's communication forum said...

mr rao gv pl guide if protection is applicable for retirees pre2006 and joined bank after 2006

Anonymous said...

I am retirrd from air force after 20 years of service and joined as a P O in corporation bank .Pls suggest whether i m eligible for pay fixation

Anonymous said...

I joined a PSB inAug2014 and got my fitment . Am I going to get the benifits of 10th bipartite? Someone plz clarify.

Anonymous said...


Anonymous said...

where is the confusion., The letter clearly says.

In addition to the pay so fixed, as aforesaid, pension and other retirement benefits may be allowed to be drawn. This will, however, be subject to limitation that the aggregate of re-employed pay and pension on re-employment of ex-servicemen would not exceed the minimum of the scale of pay of the General Manager in the Bank as per Ministry of Finance letter No. F4/1/98-SCT(B) dated 2.9.1998.

Anonymous said...

Sir, can anyone comment how Bank DA is fixed during pay fixation