The 7th Pay Commission on Thursday recommended ‘One Rank One Pension’ (OROP) for all employees, including defence personnel and civilian government employees, retiring before January 1 next year.
“This formulation will bring about parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement,” read an official statement.
“The past pensioners shall first be fixed in the pay matrix being recommended by the Commission on the basis of pay band and grade pay at which they retired, at the minimum of the corresponding level in the pay matrix. This amount shall be raised to arrive at the notional pay of retirees, by adding number of increments he/she had earned in that level while in service at the rate of 3 percent,” it said.
The statement further added: “In the case of defence forces personnel, this amount will include military service pay as admissible.”