Important decision for ranks other than Commissioned Officers who retired between 01-01-2006 and 30-08-2008

The Sixth Central Pay Commission had recommended the implementation of the Modified Assured Career Progression Scheme (MACP) providing for the grant of three financial upgradations of pay at the gap of 8, 16 and 24 years of service in case of stagnation.

Unlike other pay related modalities which were implemented with effect from 01 January 2006, the MACP was implemented with effect from 01 September 2008, thereby not including in its scope the personnel who were released from service between the two dates.

The Armed Forces Tribunal (AFT) had however ruled that the pay commission had granted all pay and pension related benefits from January 2006 and the prospective implementation was only effectuated for ‘allowances’ and hence the MACP was also to be implemented from January 2006 since it pertained to upgradation of pay. While ordering so, the AFT had followed the decision of the Punjab & Haryana High Court which had earlier ruled upon the implementation of improved pay-scales of defence personnel from 1996 rather than 1997 in an anomaly emanating out of the Fifth Pay Commission.

The decision of the AFT was challenged by the Government in the Supreme Court but the Apex Court has dismissed the appeal filed by the Union of India thereby upholding the grant of MACP from 01 January 2006 rather than 01 September 2009. This will affect the pay and pensionary benefits of those personnel who retired during 01-01-2006 and 30-08-2008.