HANDBOOK ON PAY AND ALLOWANCES (OFFICERS OF THE ARMY) 2009 Publication Committee, Office of the Controller of Defence Accounts (Officers), Golibar Maidan, Pune 411 001. 1 First published by the Publication Committee of CDA(O), Pune in 1972. Eleventh edition – 2009. Copyright: CDA(O) Pune, 2009. The moral right of the author has been asserted. All rights reserved. For sale to the officers of the Indian Army only. The book is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out, or otherwise circulated without the publisher’s prior written consent in any form of binding or cover other than that in which it is published and without a similar condition including this condition being imposed on the subsequent purchaser and without limiting the rights under copyright reserved above, no part of this publication may be reproduced, stored in or introduced into a retrieval system or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without the prior written permission of both the copyright owner and the above-mentioned publisher of the book. Typeset in 10.5/13.5 Garamond Printed and bound at Deepak Printers, Pune Price : Rs.100/-. 2 Dedicated to all our Defence Accounts Department fraternity 3 Preface 1. The necessity for this handbook on Pay and Allowances grew out of a requirement for presenting to the Army officers a simple, abridged and updated compilation of orders which would help in their submission of claims. The effort was initiated to bridge the gap between understanding of our clients & requirement as laid down in official procedures. These were scattered across various books and written in official legalese, which could be subject to differing interpretations. 2. In this edition, we have tried to ensure that all latest orders including orders on implementation of Sixth Pay Commission and clarifications endorsed by the CGDA till 31 Jul 09 have been incorporated. For orders/clarifications received after 31 Jul 09, the website may be visited at www.cdaopune.org. Officers submit their claims upto 2 years in the normal course and thereafter with time bar sanction of CFA. As such, the provisions regarding claims/allowances as per Fifth Pay Commission have also been retained. It has been our sincere effort to make the Hand Book as simple as possible with appropriate examples. 3. An important chapter in this book is the list of Do’s and Don’ts which is required to be followed meticulously. These are broad guidelines, which lay down the etiquette to be maintained for all correspondence. 4. This book is only a compilation of orders for general information and does not replace the books on regulations or other basic Govt orders. It should, therefore, not be quoted as an authority at the time of reference during submission of claims to this office or to any other authority or while making representation on pay and allowances. Rather, the actual authority in the respective books of Regulations should be quoted. Moreover, Govt orders and rules issued after the publication of the book should be taken into consideration. 5. We intend to use the advancement in the field of IT and technological solutions available in the market to ensure timely services for providing information to the officers. A step in this regard has been taken towards resolving the long deliberated issue of ensuring timely receipt of monthly Statement of Account (SoA). We have crossed an important milestone by launching the utility of displaying the SoA of all Army officers on our website. This facility is accessible to all ‘Registered Users’ having internet access. With the advent of SoA on the web, delay / loss in transit is obviated and expeditious information available helps the officers to manage their finances in a planned manner. Officers who have not registered may do so to avail of this useful facility, rather than depending upon the receipt of hard copy of the SoA. In addition to display of SoA of the current month, SoAs for previous six months have also been made available on the website from Jul 09, with PDF version to be provided soon. 6. Keeping in line with e-technology, e-mail facility for grievance / feedback may be used by the officers, whenever required, as it is a sure way of ensuring that the queries are registered & that they can be monitored and replied faster than ‘Snail mail’ or other conventional correspondence. 7. This edition could not have materialised without the meticulous work put in both by my officers and staff as well as valuable comments and suggestions received from Army officers. I wish for this synergy to continue so that our “ Service to the Services” reaches greater heights. (S S Sandhu) Date: 17 Aug 09 Controller of Defence Accounts (Officers) 4 I N D E X Sl No. Subject Page No. 1 Organisation and Functions of CDA(O).…………………………………….. 7 2 General Information on Pay Accounting System……………………………… 10 Correspondence with CDA(O) ..……………………………………………. 11 Do’s and Don’ts for Army officers ………………………………………….. 12 3 Personal and Service Matters : Important orders on various subjects. ………… 15 4 General Rules - Commencement of Pay Newly commissioned officers on grant of first commission ……………………… 18 Pay of Trainees in Service Training Institutions. ……………………………… 19 Pay and Allowances of officers taken Prisoners of War……………………….. 19 5 Increments of Pay……………………………………………………………... 20 Incentive for promoting small family norms…………………………………... 20 Increase in Pay on Promotion…………………………………………………. 23 Special Increments for Excellence in sports …………………………… 23 6 Promotions……………………………………………………………………. 25 Acting Promotion…………………………………………………………….. 25 Officiating Promotion………………………………………………………… 31 Substantive Promotion………………………………………………………... 31 7 Ages of Retirement …………………………………………………………… 35 8 Leave…………………………………………………………………………. 38 Casual Leave………………………………………………………………….. 39 Annual Leave…………………………………………………………………. 41 Furlough Leave………………………………………………………………... 42 Sick Leave…………………………………………………………………….. 43 Sick List Concession…………………………………………………………... 44 Terminal Leave………………………………………………………………... 44 Maternity Leave………………………………………………………………. 45 Study Leave…………………………………………………………………… 45 Regularisation of irregular grant of leave………………………………………. 49 Overstayal of leave……………………………………………………………. 50 Encashment of leave………………………………………………………….. 50 Encashment of leave on LTC………………………………………………….. 51 9 Joining Time………………………………………………………………….. 53 10 Gallantry Awards……………………………………………………………… 56 11 Fee and Honorarium…………………………………………………………... 58 12 Gazette Notifications on Substantive/ Quasi-Substantive Promotion - - AFL Cell………………………………………………………. 59 13 Attachments…………………………………………………………………... 61 Penal Deductions & Payment of Maintenance Allowance……………………... 62 14 Pay and Allowances under Fifth Pay Commission orders – SAI 2/S/98 ……...... 64 15 Pay and Allowances under Sixth Pay Commission orders – SAI 2/S/08…..…… 68 16 Additions to Pay………………………………………………………………. 83 Qualification pay………………………………………………………………. 83 Qualification Grant……………………………………………………………. 83 Technical Allowance…………………………………………………………... 85 Specialist Allowance…………………………………………………………… 89 Post Graduate Allowance.……………………………………………………... 90 Flying Allowance………………………………………………………………. 91 Test Pilot & Flight Test Engineer Allowance …………………………………. 92 Parachute Allowance…………………………………………………………... 93 Para Reserve Allowance……………………………………………………….. 94 Special Force Allowance………………………………………………………. 95 5 Official Hospitality Grant……………………………………………………… 95 Transport Allowance…………………………………………………………. 96 NSG Allowance ……………………………………………………………… 98 17 Allowances…………………………………………………………………….. 99 Dearness Allowance…………………………………………………………… 99 Kit Maintenance Allowance……………………………………………………. 100 Highly Active Field Area Allowance, Compensatory Field Area Allowance & Compensatory Modified Field Area Allowance…………………………….. 101 Special Compensatory (Counter Insurgency) Allowance……………………….. 104 Siachen Allowance……………………………………………………………... 105 High Altitude / Uncongenial Climate Allowance………………………………. 106 Instructional Allowance……………………………………………………….. 109 Deputation (Duty) Allowance…………………………………………………. 111 Language Award & Language Allowance ……………………………………… 112 Special Security Allowance…………………………………………………….. 113 18 Proforma for intimating change of bankers/unit address/ rate of subscription to DSOP Fund………………………………………….. 114 19 Outfit Allowance………………………………………………………………. 117 Compensation for change of Uniform on compulsory transfer ……………….. 121 20 Compensatory Allowances…………………………………………………… 123 Compensatory (City) Allowance……………………………………………….. 124 Composite Hill Compensatory Allowance…………………………………….. 126 Special Compensatory (Remote Locality) Allowance…………………………... 127 Island Special Duty Allowance………………………………………………… 133 Representational Use - Crockery for Military Service officers posted in Indian Mission / Posts Abroad - Lumpsum Grant…………………………………… 134 21 Children Educational Assistance……………………………………………... 136 22 Advance of Pay……………………………………………………………….. 146 23 House Building Advance………………………………………………………. 149 24 Conveyance Advance and Personal Computer Advance………………………… 158 25 DSOP Fund…………………………………………………………………… 164 26 Accommodation, Rent & Allied Charges………………………………………. 176 27 House Rent Allowance………………………………………………………… 189 Provisions of Separated Family Accommodation - Service officers, NCC wholetime officers and Permanent Staff posted to NCC at Hard Non - Military Stations………………………………………………………… 216 List of Reclassification of cities as per SPC orders ………………………………