Ministry of Defence: One Day Salary to PM-CARES Fund; Rs 500 crore contribution

On March 29, 2020, Ministry of Defence approved the proposal to contribute one day salary of the employees to the PM-CARES fund. This will amount to Rs 500 crores.

Highlights

The salary will collectively include funds from Army, Air Force, Navy and other Defence PSUs. The contribution is voluntary and employees willing to opt out are to be exempted.

Legislation

The Army Act, 1950 allows to make such deductions from the salary of the army personnel. However, only authorized deductions are allowed. This is ruled under Section 25 of Army Act, 1950.

Currently, the defence Personnel are paid under the 7th Central Pay Commission.

Pay Commission

The Pay Commission is set up by the GoI. It recommends changes to the salary structure of Government Employees including Defence personnel. So far, 7 pay commissions have been set up in the Indian history since independence.

First Pay commission

The first pay commission was set up in 1947 under the leadership of Srinivasa Varadachariar. It was called the Post war pay committee. In 1947-48, the Indo-Pakistani war or the first Kashmir war was fought. The committee did not mention about pension benefits of the defence personnel. The pension of the defence forces were fixed by a separate committee called the “Armed Forces Pension Revision Committee” set up in 1949-50.

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