Ex-Servicemen Pay Protection Calculator (7th CPC)
This tool estimates protected basic pay for re-employed ex-servicemen using last drawn basic pay, MSP, X-Pay and DA, following simplified 7th CPC/DoPT re-employment methodology. Verify final figures with official orders and your department.
Input Details
Pay protection for ex‑servicemen (ESM) is a set of rules that tries to ensure a re‑employed veteran is not financially worse off compared to what they were drawing in uniform, while still respecting normal civil pay scales and pension rules. Ex-Servicemen Pay Protection Calculator will help veterans calculate their protected pay on re-emplyment.
What “Pay Protection” Means for ESM
Pay protection does not mean simply copying the exact last pay and scale from the Armed Forces into the new civil job. Instead, it means fixing the initial civil pay with reference to the last pay drawn in defence, ignoring (wholly or partly) the pension so that the combined effect of new pay plus pension is reasonable and avoids “undue hardship.”
For example, a Havildar re‑employed as a clerk is normally entitled only to the entry pay of that civil level, but under pay protection they may be granted advance increments so that their new basic comes closer to their old basic+MSP+X‑pay, while still staying within the civil pay matrix.
Legal and Policy Framework
Central rules are mainly in:
CCS (Fixation of Pay of Re‑employed Pensioners) Orders, 1986 and subsequent OMs by DoPT.
CCS (Revised Pay) Rules 2016 for 7th CPC pay matrix and how they apply to re‑employed pensioners.
Ex‑servicemen (Re‑employment in Central Civil Services and Posts) Rules, 1979 (govern reservation and conditions of re‑employment).
Directorate General Resettlement (DGR) collates important policies for re‑employed ESM in different organisations (Central ministries, PSUs, banks, etc.).
These rules distinguish broadly between commissioned officers and PBOR (JCO/OR), and between cases where pension is fully ignored and partly ignored, which directly affects pay protection.
How Pay Fixation Works in Practice
1. Identify Last Defence Pay
Under 7th CPC, the defence pay elements relevant for protection typically include:
Last basic pay in the pay level (e.g., Level 6, ₹47,600).
Military Service Pay (MSP) – e.g., 5,200 for PBOR, 15,500 for officers.
X‑Pay (for technical / group X trades) – about 6,200 for PBOR in X group.
Many ESM and court cases argue that MSP must be counted when determining “pay last drawn” for protection and pension purposes. So the “defence basic for protection” is often taken as:
Defence basic=Last basic+MSP+X‑Pay
DA is usually shown separately; some bodies (like banks) consider DA at the time of retirement while comparing with civil pay.
2. Decide How Much Pension Is Ignored
DoPT’s re‑employment orders say re‑employed pensioners should draw pay in the scale of the new post, and their pension is either fully or partly ignored for pay fixation.
PBOR (JCO/OR): For most Central Government PBOR re‑employed before 55, their entire pension can be ignored while fixing pay.
Officers: Only part of the pension is ignored; the “non‑ignorable” portion is adjusted against the new pay (different OMs give different ceilings and rules).
If full pension is ignored (common for PBOR), the initial pay can be fixed at a higher stage than the minimum of the new grade, by giving advance increments until it equals or closely matches the last pay drawn.
3. Fix Pay in the New Civil Pay Level
For Central Government posts, DoPT clarified that re‑employed pensioners must draw pay only in the prescribed pay scale or pay level of the new post. However, where pension is fully ignored, they can be allowed a higher stage in that level, not a different scale altogether.
Typical method described in practice notes like GConnect:
Fix at entry pay of the new level (as for a direct recruit).
If this amount is lower than the last pay drawn in defence (or the “protected” figure), grant advance increments so that the basic in the new level reaches that protected figure or the nearest higher stage.
Permit the ESM to continue drawing full pension separately when it is fully ignored for fixation.
GConnect illustrates this with 6th CPC figures: the ESM’s last pay is used to grant increments above the minimum of the new post until that last pay figure is matched. The same logic carries over conceptually under the 7th CPC matrix using levels and stages instead of grade pay.
4. Banks, PSUs, Postal and Other Bodies
While DoPT rules govern Central Government departments, many other bodies have their own detailed instructions that broadly follow the same logic but with some differences:
Public Sector Banks (including SBI): IBA circulars on ex‑servicemen pay fixation usually protect pay with reference to last pay drawn plus DA, and adjust how much pension is ignored when fixing starting basic in the bank’s bipartite pay scales.
LIC, NIC, PSUs, Railways: Their circulars often refer back to DoPT orders, but implementation can differ; some protect pay more generously than ministries, others follow a stricter “no protection of scale, only scale of post” reading.
Postal Department: Re‑employment as postal assistants, postmen etc. uses central rules plus department‑specific clarifications; multiple ex‑servicemen forums discuss specific pay‑fixation patterns in postal jobs.
State Governments: Many states have their own ESM policies. Some (like Haryana in several circulars) have allowed stronger pay protection (e.g., nearly full last pay drawn being considered), while others align more closely with Central norms with entry pay only and no special increments.
Because of these variations, ESM often rely on case law, RTI replies and association guidance to push for MSP inclusion or full pension‑ignore in particular organisations.
Common Issues and Disputes
“No protection of scale” vs “higher stage in same scale”: DoPT orders say re‑employed pensioners draw pay only in the prescribed scale of the new post, and explicitly state “no protection of the scale of pay of the post held prior to retirement.”
Ex‑servicemen argue that while the old scale is not protected, the amount of last pay should be protected by giving increments in the new scale; some departments interpret orders narrowly and fix pay only at the minimum, causing disputes.Inclusion of MSP in pay protection: High Court observations and ESM groups highlight that MSP is an integral part of defence pay and should be counted both for pension and for pay protection, but not all departments have updated their instructions accordingly.
PBOR vs officers treatment: PBOR often get full pension ignored (and thus potentially better protection), whereas officers might see a part of pension deducted from fixed pay, lowering the net advantage despite higher original ranks.
Different treatment across organisations: A PBOR re‑employed in a Central ministry may get only minimum entry pay, while another in a nationalised bank or PSU may get pay nearly matching last pay drawn because of IBA/PSU‑specific circulars.
These inconsistencies lead to litigation and constant representation from ESM associations seeking uniform, MSP‑inclusive protection on re‑employment.
Practical Takeaways for Ex‑Servicemen
Always collect and keep: PPO, last pay certificate (with basic, MSP, X‑pay, DA), discharge book and any promotion/pay‑fixation orders at discharge.
On re‑employment, ask specifically which rules are being applied—CCS (Fixation of Pay of Re‑employed Pensioners) Orders, IBA circular, PSU HR manual, or state ESM policy—and request the relevant circular.
Check whether the organisation is:
Ignoring pension fully (typical PBOR in Central/PSU), or
Ignoring only part (officers, some banks/railways).
Compare:
Your last defence basic + MSP + X‑pay (and DA if their rules say so)
With the entry pay and possible increments in the new level/scale using a calculator like the one you’re building.
If there is a large gap and your pay has not been fixed with reference to your last pay drawn despite rules allowing it, you can:
Submit a representation quoting relevant DoPT OM / IBA circular and ESM examples (GConnect/StaffNews often share them).
Escalate via DGR, ESM associations, or, if necessary, legal remedies referencing previous judgments on pay fixation for re‑employed pensioners