7th Pay Commission increased Military Service Pay (MSP)
The defence forces personnel, in addition to their pay as per the Matrices above, will be entitled to payment of Military Service Pay for all ranks up to and inclusive of Brigadiers and their equivalents.
The Commission recommends an MSP for the four categories of Defence forces personnel at
- ₹15,500 for the Service Officers,
- ₹10,800 for Nursing Officers,
- ₹5,200 for JCO/ORs, and
- ₹3,600 for Non Combatants (Enrolled) in the Air Force per month.
MSP will continue to be reckoned as Basic Pay for purposes of Dearness Allowance, as also in the computation of pension. Military Service Pay will however not be counted for purposes of House Rent Allowance, Composite Transfer Grant and Annual Increment.