Disability pension and compensation to ex servicemen and cadets

Disability Pension in cases of invalidment is granted to Armed Forces Personnel irrespective of qualifying service rendered which consists of service element and disability element. Armed Forces personnel who are retired / discharged with disability which is attributable to or aggravated by military service are also allowed disability element in addition to their service / retiring pension. With effect from 01.01.2006, the Disability Element is paid based on 30% of last emoluments drawn for 100% disability which is reduced pro-rata for lower percentages of disability.

Benefit of broad banding of percentage of disability was earlier allowed only for those invalided out from service. However, vide Ministry of Defence orders dated 4th and 5th September, 2017 the benefit of broad banding of percentage of disability has been extended to cases of retirement / discharge from service with disability of 20% or more.

Cadets during the entire duration of training in service academies i.e. during training period of Indian Military Academy (IMA) and Officers Training Academy (OTA) are entitled to stipend. The period of training is not treated as Commissioned Service. Cadets are not entitled to Disability Pension.

The scheme for grant of monthly ex-gratia awards in cases of death / disablement of Cadets (Direct) due to causes attributable to or aggravated by Military Training was introduced vide Ministry of Defence letter dated 16.04.1996 which was applicable with effect from 01.01.1986. Rates of Ex-gratia awards have been revised by each Pay Commission. The rates notified vide Ministry of Defence letter dated 04.09.2017, are as follows:-

In case of disablement:-

Monthly Ex-gratia amount: Rs.9,000/-pm.
Monthly Ex-gratia disability award: Rs.16,200/-pm for 100% disability, subject to pro-rata reduction for lower percentages of disability.

Constant Attendance Allowance: Rs.6,750/-pm, if applicable.

In case of death:-

Monthly Ex-gratia amount: Rs.9,000/-pm.
Ex-gratia lump sum compensation: Rs.12.5 lakhs.

7th CPC Travelling Allowance Rules : Finmin clarification for Daily Allowance

F. No. 19030/1/2017-E.IV
Government of India
Department of Expenditure
E.IV Branch

North Block, New Delhi.
Dated 01st February, 2018

OFFICE MEMORANDUM

Sub :- Travelling Allowance Rules — Implementation of the Recommendations of the Seventh Pay Commission.

Consequent upon the issuance of this Department’s O.M. of even number dated 13.07.2017 regarding implementation of recommendations of 7th CPC on Travelling Allowance (TA), various references are being received in this Department seeking clarification regarding admissibility of Daily Allowance (DA) in case Govt. employee avails free boarding and lodging.

2. The 6th CPC had changed the old concept of Daily Allowance by introducing reimbursement of Hotel Accommodation, Food Bill and Taxi Charges on production of vouchers for the same. Since this was a new concept, therefore, option was given to the employees to choose either the old 5th CPC single rate of DA or the new system of DA based on reimbursement of expenses as per 6’n CPC. The 7th CPC has recommended to continue the concept of reimbursement of Hotel Accommodation, Food Bill and Taxi Charges with the exception that vouchers are not required to be produced for Food Bills.

3. The matter regarding admissibility of DA in case of free boarding and lodging, has been considered in this Department. Daily Allowance is given to the Govt. employees as a reimbursement of the expenditure incurred by him on tour for his stay, food and travel at that station. In case of free boarding and lodging, the Govt. employee, if incurring any expenditure on local travel, can claim the same as per Para 2 E (i) and (iii) of the Annexure to O.M. of even No. dated 13.07.2017. The earlier system of giving 25% of DA is being discontinued. Also, after implementation of 7th CPC recommendations, the facility of DA at 5th CPC rates is done away with.

4. This is issued with the approval of Secretary (Expenditure).

Hindi version is attached.

(Nirmala Dev)
Deputy Secretary to the Government of India