The 7th Central Pay Commission (7CPC), constituted in February 2014 to review the principles and structure of emoluments of all central government civilian employees including defence forces, submitted its report on 19 November 2015.:p 95,para 6.1.2–3 7CPC’s recommendations affects the organization, rank structure, pay, allowances and pension, of 13,86,171 armed forces personnel.page 105, para 6.2.2
Following the submission of the 7CPC report, the Chiefs of Staff of the Armed Forces, in their submission to the Government contended that the recommendations of 7th CPC are anomalous, discriminatory, and at variance with historical parities. The anomalies identified by the armed forces are about use of different principles, policy, and formula by the 7CPC for determining armed forces pay, allowances, level, rank equivalence, pension, and status in comparison with the civil services, including defence civilians, police and intelligence services. These anomalies they have argued affect morale, command and control, and cohesion.
On 5 September 2016 the Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) government implemented the recommendations of the 7CPC including those affecting the armed forces with minor modifications. I On 7 September 2016, the Chiefs of the Army, Navy, and Air Force, wrote to Narendra Modi, the Prime Minister, and Mohan Parrikar, the Defence Minister, conveying their concern about the “unresolved anomalies”. They also write and inform their respective commands that they have been “constrained to request the government to hold implementation of 7th CPC award in abeyance in view of the anomalies which need to be resolved”. On 14 September 2016 the headquarters of the three services, following assurances at the highest level that anomalies affecting armed forces pay, pension, allowances, rank parity, and status would be addressed, issued instructions to their commands to implement the government decision.