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Tuesday, January 6, 2009

Updated - URGENT & IMPORTANT for offrs promoted after 01 Jan 2006 : Last few days to exercise option of date of switching over to new 6th CPC scales

SAI 2/S/08 was issued on 11 Oct 2008.

All officers were supposed to exercise options vis-à-vis the new scales within a period of 3 months from date of issuance of the ibid SAI. If an option is not exercised, then by default the switch over to the new scales would be initiated by the CDA(O) with effect from 01 Jan 06.

But switching over to the new scale w.e.f 01-01-2006 can be highly detrimental to officers who were promoted after 01-01-2006.

For example, if a person was a Capt on 01-01-2006, his/her pay by default would be fixed by multiplying his/her basic pay (as on 01-01-2006) X 1.86 and the figure thus obtained would be his new basic pay in the new 6th CPC Pay Band-3. Irrespective of his/her next promotion, his/her pay would then continue to move forward w.e.f 01-01-2006 from the basic pay thus fixed by the multiplication factor of 1.86.

However, if the above officer is promoted to the rank of Major on say 01-04-2006, then it would be more beneficial for him/her to opt for moving over to 6th CPC scale w.e.f 02-04-2006 since by doing so, his new basic in PB-3 would be calculated by multiplying by 1.86 his new higher basic pay for the rank of Major (as opposed to Capt’s pay on 01-01-2006) which would make a substantial difference.

The above situations are fully explained in Paragraphs 5 and 6 of SAI/2/S/08.

Illustrations and examples are also available on CDA(O) wesite http://www.cdaopune.org/ and courtesy CDA(O) the same are also being placed here on this blog for the convenience of readers.

Examples from the CDA (O) illustration :

Example 1 : An officer who is a Capt as on 01-01-2006 and is promoted to Major on 10-06-2006.

If this officer opts for the new scale (which would happen by default) on 01-01-2006, then his total arrears would be Rs 66580

But if this officer opts for the new scale (through Appendix-A of SAI 2/S/08) with effect from his promotion as Major on 10-06-2006, then his total arrears would be Rs 177112

Example 2 : An officer of the AMC who is a Capt as on 01-01-2006 and is promoted to Major on 02-04-2006.

If this officer opts for the new scale on 01-01-2006 then his total arrears would be Rs 53968

If this officer opts for the new scale from his promotion on 02-04-2006 then his total arrears would be Rs 202772

What can be immediately done since 10 Jan 09 is the last date for exercising your option :

Firstly if you were promoted after 01-01-06, by carefully perusing this illustration table and Paras 5 & 6 of the SAI, please analyse if you would gain by opting for the new scale from the date of promotion. If you stand to gain, then promptly do the following :

(a) Send a signed copy of Appendix-A (Option form) of SAI 2/S/08 immediately to CDA(O), Golibar Maidan, Pune – 411 001 through speed post.

(b) Send a signed copy through your unit also by speed post which in fact is the correct procedure.

(c) Just to have a back-up, do send CDA (O) an email exercising your option with an e-copy of Appendix-A (the option form).

Kindly also visit the CDA(O) website to clarify any further doubts on the issue.

Please be extra careful while exercising your option and undertake detailed calculation before doing so. Please excuse me from individual queries on the subject but the same may be placed as comments to this post so that a cross-section of visitors can enlighten us all in case of any ambiguity.

Readers are also requested to immediately (by tele) inform friends/batchmates/affected officers who may not be having access to such information and who may be serving in not so hospitable areas. With a further request to extend full help and support to such officers on this issue. Please note that this option as per Appendix-A read with Paras 5 & 6 of the SAI is separate than the situation mentioned in Para 12 wherein an option has to be expressed as to the date of application of increment on promotion. CDA (O) would select the more beneficial option as per Para 12 if not opted for by the officer himself/herself but CDA (O) would not do so as far as the date of switching over to new scales is concerned. Officers tend to confuse the two optional situations, that is, the first mentioned in Paras 5&6 and the second mentioned in Para 12. The option as per Para 12 is not so pertinent to the overall scheme of things as is the option as per Paras 5 & 6. It is recommended that with the help of the SAI and the illustrations, two detailed charts may be made - One as per switch over on 01 Jan 2006 and the other as per a switch over on date of promotion, and then a decision may be taken by analysing the arrears. The CDA (O) will not select the more benefical option for the officers in case of the date of switch over from the date of promotion after 01-01-2006 (Paras 5 & 6 of the SAI), it would only select the more beneficial option concerning the date of increment on promotion within the new scale as per Para 12.


Anonymous said...

Kindly explain what would be the appropriate choice to exercise for a col promoted on 01 Feb 2006.By accepting pay commission w.e.f 02 Feb I loose increment in july 06 as i dont complete 6 months by then.Still as on today accepting pay commission w.e.f from 02 Feb 06 is better as the fixation as on 02 Feb 06 will be higher.However this choice of benifit gets reversed when the Lt Cols are placed in PB4 in which case accepting pay commission w.e .f 01 jan is more benificial.Any comments

Anonymous said...

I got promoted as Wg Cdr on 21 Jun 2006. Thereafter, I retired from IAF on 20 Jun 2008 after a 15 year SSC tenure. How would a person like me excercise the option. Will AFCAO ask me for an option even after retirement before fixing up my scale for calculating arrears?

Anonymous said...

Option for drawal of revised pay alongwith fresh option for revision of pay on promotion on or after 01 Jan 06 till 11 Oct 08 should reach CDA(O) before 10 Jan 09 i.e. within three months of the date of publication of SAI 2/S/08 or where an existing scale has been revised by any order made subsequent to that date, within three months of the date of such order.

Anonymous said...

@ Navdeep,

Two queries:

1) Can you please tell me whether the case filed by many retired personnel on the basis of Maj. Dhanapalan's case in the Supreme Court has been decided & whether those affected personnel who have not filed the case will also benefit in case of a favourable judgement?

2) The Supreme Court had ruled that no ECHS fees to be charged from pre-96 pensioners but those who had already paid have not been reimbursed saying that only those who become member now won't have to pay.Is this the correct interpretation of the judgement?

I would really appreciate if You could address these two queries.

Thank You.

Anonymous said...

I got promoted to the rank of Capt(I.N) on 01 jul 06.My basic in the cdr rank as on 1 jan 06 was 16700 plus rank pay.What would be the appropriate choice for me after the cdr get placed in PB 4.I request naval pay office should come up and assit the officers through their web site.Presently nothing of this kind of help is available anywhere.

Anonymous said...

i was promoted to rk of lt col on 02 jun 2004 and became acting col on 24 may 06. i have complede 20 yrs service on 17 dec 08. please advise if i need to exercise option for pay fixation. if yes, then which option?

Anonymous said...

Respected Sir,
I am following your blog from last four months.Thanks for providing usefull information for all the Military personnel. Kindly discuss issues concern with PBOR also. Because their resources and knowledge is very less.

Anonymous said...

Dear All,

kindly see these OM of Fin Ministry issued for CCS rules for knowing when one will be granted increment and accordingly opt for dates. These rules though technically are not MoD Rules but MoD rules can not be different from Min of Finance guidelines.

http://india.gov.in/govt/studies/clarifications.pdf (Rules for Fixation of pay on different dates)

http://india.gov.in/govt/studies/clarifications.pdf (Fitment tables to see where ones Pay will be fixed as on 01.01.06)

All the best and Regards.

Anonymous said...

dear sir,
firstly it is not clear what we are getting.
we have to many confused masters who are not only lazy and slow but ignorant too.
why cant people read gazzette notification and print the same with additional army benefits.

IndianACE said...

Thank you for putting this across so precisely.

Can a stay order be obtained on this last date for exercising the option for fixation of pay, till all possible scenarios are put on paper through the SAI/SAFI and Naval Instructions?

From my experience the last time around, it will be very difficult to rectify your choice after the option is exercised or even if CDA(O) makes the option for you, should you fail to send them the option.

I would also suggest that the AG Br should place an officer with adequate shoulder brass and adequate decision authority (intellect too),to sit permanently in close vicinity of the CDA(O), so that all anomalies and doubts be clarified both to the aggrieved officer and the CDA(O).

I am certain that a large no of us ultimately give up on our dues after being stonewalled a couple of times by the clerks at the CDA(O). And if you approach the AG Br with your grievance- has anyone got a reply, ever! :-).

Anonymous said...

Dear Maj Navdeep

I feel ur explanation at para 4 regarding the benifits of accepting pay commission after the promotion (in case promoted after 1 jan 06) is no longer not true for the cols and eqvilants after Lt col are placed in pay band 4.By accepting pay commission after the promotion office will loose increment in jul if promoted between 2 jan and 1 jul.Secondaly he will stand to loose the arears for the period.In the event of lt cols being pur in pay band 4 , it will be benificial for the officers promoted between 2 jan to 30 jun to accept pay commission by 1 jan 06 and accept promotion with the next increment that is jul so that he gets the maximum benifit

Anonymous said...

Dear sir,
My query regarding flying pay being taxable for pilots remains.
No arrears given because it is an allowance.. but being added to total pay for calculation of income tax. This hypocracy is not understood.Can anybody explain this?

Navdeep / Maj Navdeep Singh said...


I never stated so about Lt Cols and Cols. All I have said is that a considered decision has to be taken since each case would be different depending upon the date of promotion. A few examples amplified by the CDA(O) have been placed on the post. Every officer, more so if promoted in 2006/2007 would have to see as to how his / her arrears can be maximised - by using 1-1-06 as the switch over date or the (later) date of promotion.

Anonymous said...


Also, should not the CDA calculate the most beneficial option for the offr & fix the pay? As per the SAI FAQs this is clearly stated.

Can the calculations be made course wise & let be known to all? Say those passing out in Jun 1994, Dec 1994, Jun 1995, etc.

Anonymous said...

@ flyboy 5:21pm who gave you that allowances are non taxable all allowances are taxable except KMA and transport allowance up to 800/-

Anonymous said...

Dear major,
kindly confirm whether the same logic will stand for offrs promoted to the rk of lt col after 01 jan 2006( lets say Jun 06) as now they would be coming into a different pay band altogether.
Will be grateful for your reply.

Anonymous said...

@narayan in your case with 16700+1600=18300 will be fixed at 43390(as per draft SAI) and as captain 16900+2000=18900 also at 43390 in jul06(in case no inc as cdr till jul or else 44700)in option I you will be at 43390+8000 x 3%= 1550+ 43390=44940 hence option I is more beneficial for you.

@Anony at 9:34 am option I in your case and and option "a" as per appendix E to SAFI

Anonymous said...

Dear Navdeep , i was promoted to rank of Lt Cdr on 01 Jul 06. Should i give option for switching over from 02 july 08 or 01 july 08. Does it makes any difference. I am still confused . Please reply fast as time is running over. i will be faxing my option on 09 Jan 08.

Anonymous said...

little correction in my last message. i meant 01 jul 06 or 02 jul 06.

Navdeep / Maj Navdeep Singh said...


Give your option as 02 July 2006


The situation becomes redundant for Lt Cols since they are now in PB-4

Anonymous said...


what is option I

Anonymous said...

Dear Maj Navdeep

one clarification pl.
SI/2/s issued on 11 oct 08 stated that the officers are to exercise their options within 3 months of the issue of si.However , in the same si at para 2 it was mentioned that separate si will be issued in case of col(TS) and reemployed officers which was subsequently issued in Nov 08 for Col TS).No si has been issued till date for reemployed officers.Therefore , in case of col(TS) and reemployed officers what should be the cut off date for exerciseng option.Thanks

Anonymous said...

All those opting get their pay fixed as per SPC beyond 01 Jan 06 to note that they will be loosing out on Grade Pay till fixation of pay. This amount will be substantial as you delay fixation.

Anonymous said...

@narayan option I is wef 1.1.06

Anonymous said...

what will b the new basic for a lt col with basic 17100+400(stagnation) as on 1 jan 06.is there any fixation table

Anonymous said...

@anony at9:33pm 42120/-

Anonymous said...


Brothers, kindly help,

I was promoted to Col(TS) ON 07 JUN 2006. What option should I opt for? Thanks a ton in adv!

Anonymous said...

I have been promoted to the rank of Cdr on 06 Jan 07. Which option will be benificial for me.

Anonymous said...

Dear Sir
Pls help. Is it wise to choose the second option as i got promoted on 13 Dec 07 as substantive Major, keeping long term benefits in mind.
Anyone pls clarify.

Anonymous said...

Dear Maj Navdeep
But why this whole confusion of option fixation, why not govt pays the way it should be? what is the idea of having an option of fixation? why not pay according to 6PC by the way offr is getting promoted. Any Guesses from your side
Warm Regards

Anonymous said...

@warrior at 9:41 pm

what will be the new basic for a lt col with basic 17100+1600 (rank pay)+ 400(stagnation) as on 1 jan 06.

Anonymous said...

@ anony at 9;33pm 06 jan corection 17100+400+1600 should be 44700

@ anony 6:40 am 7 jan same for you

Anonymous said...

Thanks Major Navdeep. The seperate pay Commission for Armed forces should be built around you.

Anonymous said...

dear warrior,
thanks for the info but i think there is some misinformation. The CI allowance or the Siachen allowance( Rs 14000/-) in Army is
non taxable.Similarly the flying pay , which is in effect a risk allowance also falls in this category.

Harry said...


All "Compensatory Allcs" are NON TAXABLE be it CI or Siachen which fall under this category. However flying pay has NOT been classified as Compensatory, thats why it is taxable!

prakash_rvc said...

will the option have significance if the Lt Cols are placed in PB-4

Kots said...

An interesting read

- by TV Subramanian 05 Jan 2009
at http://content.msn.co.in/MSNContribute/Story.aspx?PageID=9e9fa4f5-2c54-4019-9129-3bcdd80ddc4a

Anonymous said...

Good news amidst all the confusion created by the babus is that officers whose release applications are pending with the Govt can now approach the courts.The govt has shifted the goal posts with regard to parity, status and many other things than the time when officers signed that enrollment form and bond. Since slavery has been abolished the Govt cannot force individuals to work against their will when service conditions have been changed by the employer.Especially full Cols who have been brought below DIGs and Brigs who have been brought at par with DIGs.So friends try your luck with the courts.Don't waste your time with the thankless jobs which you are all performing.

Anonymous said...

Dear Maj Navdeep Singh
Could you please clarify: Lt Cols who were promoted in or before Dec 05, What would be the right option for VI cpc and increments. Thank you.

Ashok said...

Exercise of option
The entire thing seems to have been turned upside down with PB4 for Lt Cols. I dont see how we can exercise option till the matter clears. However, to state my case- I became Col in Apr 2007. I went to CDA (O)and visited the Pay Com Cell with my dealing clk. He told me if I took new pay scale from 1/1/06 as lt col I was being fixed as Col at 39000approx (I am in AMC). If I opted to wait till Apr 2007 dt of promotion and take new scale, due to yrs of service I would be fixed at 48000 approx. In the event I failed to give the option it CDA would give the beneficial option (Something they haven't done so far!). Like Agarwal said on 6 Jan above the benefits now get reversed for me and I would now have to enter PB4 on 1/1/06 as Lt Col. This same thing would be critical for those who became LT COL from Maj after 1/1/06. They must check the fitment table and enter the new scale from date of promotion. Loss of arrears would be about 50k but the lifetime benefit of getting a higher scale would be there (or at least till 7CPC)! It appears there is a significant benefit for those changing the Pay Band on promotion.
Further comments and corrections welcome....

Anonymous said...

Dear Sirs
I think with lt cols being placed in pay band 4 now, all those who were propmoted after 01 jan 06 have no issue of deciding an option since the new pay will be effective in higher pay band for lt col and revised pay scales in pb3 for major will automatically commence wef 01 jan 06. Also, since the issue still awaits AI, another three months for the to lt col promotees for deciding the option will come in (I presume). If their are any differences, please do let me know as well.

Anonymous said...

Please clarify if being on a UN mission also amounts to being on deputation in non combat role? (for applicability of pb4 for lt cols)

Anonymous said...

There seems to be a lot of commotion being created by the CDA themselves..these guys are not at all clear as to how to handle the options thing for the officers who have got promoted after 01 Jan 2006. I spoke to them in the morning...rather than clarifying the genuine doubt abt the benefits which i am going to accrue if opt for the option of getting my pay fixed wef date of promotion...They have confused me thoroughly . SOS....Can any tell me which option should i opt....i became Col in Sept 2007.

Ashok said...

As per the CDAs current sit- u shd take the new pay scale after promotion.

Like wise the benefit may or may not get reversed after PB4 for lt cols.

One will have 2 wait and watch.
Currently give the latter option.


Dear Well wisher Navdeep. A Salute to your efforts and contributions.
Kindly educate( for pre-1996 retirees) effectedofficers/PBOR drawing disability pension along with service pension ( pre 1996 pensioners)
(a) New scales disability pension.
(b) Consolidation of pension has been done considering both service as well as disability pension.
(c) Whether new scale of disability pension is to be added over and above cosolidated pension as in sub-para(b) above.
(d)The authority to further ammend pension of Lt Col(TS) as per Pay Band 4, so that the Bankers could be informed for the needful.
Thanking you
Sincerely Yours

dr_janusx2 said...

A corrigendum on the SAI dated 06 Jan 2009 states that some changes have been made to the SAI including, most importantly, Appx F & G - in which a statement made by the offr concerning the date of grant of pay on promotion/ increment as per Para 12. I wanted to know that, citing this, can we resend the details as per Para 5 also?

Anonymous said...

dear navdeep
I was promoted to rank of colonel on09 june 06 can you guide me as to what option i should exercise .

Ashok said...

If promoted on 09 June 06 the option must be to take pay from date of promotion.

Anonymous said...

Army is fighting force of country and established to defend country. They must be paid well for doing this job as it involve alot of sacrifices which in fact can not be monetarally compensated.
The PBOR can not be ignored. The ARMY OFFICERS are actually already enjoying. Go and see the lavish bunglows of senior service officers.You will be surprised to see the inside furnishings all at GOVT costs. Some PBOR in uniform standing at the gate as guard in hard summer when SAab is relaxing in airconditioned bed room. Many PBORs working as batsmen in houses just like personal sevants. Is it not excess committed by Clout of Army officers over poor PBORs
Govt should seriously take on this issue
Cut down The luxuries enjoyed by officers and enhance the financial status of PBORs
Army should be checked from getting engaged in non combat activities. MES, BRO, Suvey of India should not be treated as domain of ARMY officers to relax and pass time. At least ARMY officers in active servise should not be allowed. Yes the ex-sevice offices may seek re employment and join MES,BRO -- if they fulfill the technical QR of the posts

Once the organisations are separated the problem of equivalency automatically get resolved ------THAKUR R N

dr_janusx2 said...

Confusion - whats this now?

gp capt sekhon said...

NAVDEEP, jaihind, still doing a yeoman's job,god bless. I became Group Captain (TS) on 14mar 2005, do let me know whether i have also to opt for new rates of pay or is it going to be fixed by authorities, i retired on 30 sept 2007,also, no arrears of pay nor pension have yet been released. if you could throw some light,it would be of tremendous help. Thanks...... sekhon

kumarasingha said...

Dear brother I was due for my next increment w.e.f. 06-02-2006 also I was promoted to the rank of Wg Cdr w.e.f. the same date i.e 06-02-06. please advise me about excising option to new pay scale.