MSP issue: Departments of defence ministry appear to be at cross-purpose

MSP issue: Departments of defence ministry appear to be at cross-purpose

By Anish SinghnnNEW DELHI: Two departments of the defence ministry appeared to be at cross purposes in ensuring implementation of Military Service Pay (MSP).nnA procedural wrangle between the defence ministry and the finance ministry is keeping at bay the implementation of leave encashment.nnPune-based Principal Controller of Defence Accounts (Officers) (PCDA) has not included MSP as part of pay for calculation of leave encashment for 300 days and 10 days leave encashment allowed each year. The move would lead to a monetary loss of approx 1.40 lakh defence personnel, sources in the defence ministry told UNI.nnIn the 6th Central Pay Commission (CPC), the MSP was granted to defence personnel in place of Rank, Pay and Compensation for edge in pay. It was treated as pay for all purpose except for calculation of annual increment.nnWhile in 7th CPC, the MSP was to be counted as pay for purpose of computation of dearness allowances and pension.nnThe Department of Ex-Servicemen Welfare (DESW) has included MSP as part of its reckonable emoluments in the pension order. For the same case, the PCDA has sought clarification from the Department of Defence (DoD).nnThe DESW and DoD come under the purview of the defence ministry.nnFor more clarity, the DoD has requested the finance ministry for assistance. The guidelines are still awaited.nnAs per the sources, a large number pay and allowances are still pending with the DoD, impacting over 13.5 lakh personnel.nnIt would accrue a loss of Rs 1.55 lakh to each military officers and Rs 60,000 to each Junior Commissioned Officers (JCO) and Other Ranks (OR).

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