Indian Army had made a case for a pay hike in a certain category and today the reaction of the government was released. A long-standing demand of the armed forces for higher Military Service Pay (MSP) for around one lakh personnel, including Junior Commissioned Officers, has been rejected by the government outrightly, according to military sources, reported PTI.

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The sources cited that the Army has taken note of the decision by the Finance Ministry and will seek its review. Around one lakh service personnel including 87,646 JCOs and 25,434 personnel from the Navy and the Indian Air Force will be affected by the decision.

The MSP was introduced to the services recognising their unique service conditions and hardships. "The proposal for higher MSP for JCOs and equivalent rank of the Navy and IAF has been rejected by the Finance Ministry," said a source.

Earlier this year, the Centre told the Supreme Court that it has taken a "policy decision" on implementation of One Rank-One Pension (OROP) for ex-servicemen and sought dismissal of pleas seeking automatic annual revision of pension, instead of current policy of periodic review once in five years.

A bench comprising Chief Justice Dipak Misra and justices A M Khanwilkar and D Y Chandrachud was told by Additional Solicitor General Maninder Singh, appearing for the Centre, that the government has taken a "policy decision having financial impact" and this will not be reviewed on judicial side.

"We will not revise the OROP formula. The government has already gone out of its way. More than Rs.10,000 crore has been sanctioned after much deliberation. This has huge ramifications on the exchequer and any interference would further burden us," the law officer said and sought dismissal of the petitions.