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Supreme Court Weighs in on Military Veterans' Pay Hike Demand

The Supreme Court is set to rule on a long-pending case seeking automatic salary increases for military personnel tied to their years of service, mirroring a benefit already granted to civilian government officials.

The case, which has been pending since 2017, was scheduled to be heard on April 23 but was postponed. At the heart of the issue is the Non-Functional Upgradation (NFU) policy, which ensures officers receive higher pay scales even if they aren't promoted to a higher rank.

NFU Policy: A Financial and Status Benefit

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Introduced by the 6th pay commission in 2006, the NFU policy initially applied to IAS and IFS officers. The benefit was later extended to IPS officers and other Group A services officers in 2010. However, armed forces personnel have been excluded from the policy, citing a unique rank-based structure and other benefits like Military Service Pay (MSP).

Veterans Seek Equal Treatment

Military veterans, led by Colonel Mukul Dev (retd), are seeking equal treatment with civilian government officials. They argue that the denial of NFU to defense personnel has been "unfair, evasive, and without valid justification." Colonel Dev notes that most armed forces personnel retire at the age of 54, while civil servants retire at 60, resulting in a significant pay gap.

Government Report Recommends Against NFU Extension

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A report submitted to the Supreme Court by a four-member High-Level Committee on Grant of NFU to Armed Forces Personnel recommends against extending NFU to the Armed Forces. The report argues that the service conditions of Defence Forces are different from those of Civilian employees and that additional benefits like One Rank One Pension (OROP), MSP, and other allowances already stand extended to the Armed Forces.

ServiceNFU StatusCumulative Fiscal Impact (Rs. crore)
IAS/IFSExtended-
IPSExtended-
Other Group A ServicesExtended-
Central Armed Police Forces (CAPFs)Extended-
Armed ForcesNot Extended22,000 (OROP)

The report estimates that implementing NFU in the Armed Forces would result in an additional liability of over Rs 12,000 crore, besides additional liability on account of re-calibration of OROP.

Promotion Policies Differ Between Armed Forces and Civil Services

The report highlights a fundamental difference in promotion guidelines between the Armed Forces and Civil Services. In the Armed Forces, promotional boards are used for selection to a Select Rank, while in Civil Services, promotions are based on seniority-cum-fitness without restriction on the number of chances for consideration.

Veterans Remain Determined

Despite the government's stance, veterans remain determined to fight for equal status. Colonel Dev notes that granting NFU to the defence forces would compensate for the missed opportunity to an extent. Another defence veteran argues that the argument of MSP is flawed, as it's an amount that was worked out after subsuming many earlier allowances.

The Wait Continues

The Supreme Court's ruling on the case remains pending, leaving military veterans in limbo. As the wait continues, veterans remain hopeful that the court will rule in their favor, bringing an end to the long-standing inequality in pay and status.

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