§ The Prime MinisterWith the permission of the House, I would like to make a statement about the future remuneration of British Service Army and Royal Air Force officers and other ranks who are at present on Indian rates of pay. As indicated in Cmd. Papers 6715 and 6750, this question has been under con- 1367 sideration by His Majesty's Government in the United Kingdom and the Government of India. Both Governments have now agreed that with effect from the 1st July, 1946, British Service officers and other ranks serving in India and other areas where the Indian pay code is at present in force shall be paid at the rates provided in the new British pay code, subject to British tax, with a local overseas allowance in respect of. the higher cost of living at their overseas station. Certain special arrangements of an interim character are being adopted to provide for the transition from the present Indian to the British code. Details of these arrangements will be published in the OFFICIAL REPORT.
§ Colonel Gomme-DuncanHas the Prime Minister also given consideration to British officers and other ranks who are pensioners of the Indian Army, and can he say whether the benefits which have been given to pensioned officers in this country will apply also to those of the Indian Army?
§ The Prime MinisterThat is another question. Perhaps the hon. and gallant Member will put it down. It is not covered by my statement today.
§ Following is the statement:
§ Post-war Pay and Allowances of British Service Officers and Other Ranks in India and the Far East.
§ 1. In the White Papers (Cmd. 6715 and 6750) announcing the Post war emoluments of members of the Armed Forces it was stated that the arrangements to be made in regard to British Service Officers and Other Ranks remunerated under the Indian Pay Code were being examined by H.M. Government in the U.K. and the Government of India. This examination has now been completed.
§ Present application of Indian Pay Code.
§ 2. Hitherto Army and R.A.F. Officers and men serving in India have been paid at rates determined by the Government of India under a system which, particularly in the case of officers, differed fundamentally from that applicable to personnel serving elsewhere: they have also been subject to Indian Income tax. In the course of the war the Indian system was also extended to Ceylon and other areas East of India. It was, however, made clear that this extension of the Indian Pay Code area was a temporary measure and that, at a suitable opportunity, the British Code would be reintroduced in the localities where it would normally have applied.
§ Cessation of separate Indian Pay Code.
§ 3. Both the Governments concerned have now reached the conclusion that it is undesirable to maintain a separate code for members 1368 of the British Services serving in India or elsewhere, and they have, therefore, decided that from 1.7.46 the new Code, as announced in the White Papers referred to above, and also the U.K. Income Tax Code, should apply both in India and the Far East. The change will enable members of the United Kingdom Forces to be remunerated on a common basis where-ever they may be serving, and will greatly facilitate the administration of pay and allowances.
§ Local Overseas Allowance.
§ 4. In conformity with the practice under the British Pay Code in certain other localities overseas, a tax free allowance will be introduced to cover extra costs arising from local circumstances. This allowance, hitherto known elsewhere as Colonial Allowance, is in future to be called Local Overseas Allowance, which is a more appropriate title. The rates will vary according to the locality and according to whether the recipient is married or single and accommodated or not accommodated at the public expense.
§ Cessation of special War Emoluments.
§ 5. The statements in the White Papers regarding the termination of war gratuity, post war credits and war service increments apply equally to the British Services in India and the Far East as alsewhere. As regards Japanese Campaign Pay, it was stated that it would continue up to the anniversary of V.J. Day, i.e. 15th August, 1946. It has now been decided that it shall then cease. As a consequence, it will continue to be issuable at current rates and in accordance with present rules under the new code from 1.7.46 to 15.8.46 inclusive, and it will then be terminated and will not be taken into account as part of pay for the purpose of the special arrangements explained in the following paragraphs.
§ Application of new Pay Code.
§ 6. In order to avoid hardship which might be caused by a sudden and serious loss of higher rates and the incidence of heavier taxation, arrangements will be made for the grant of war excesses and transitional allowances broadly on the lines of those provided in the White Papers, with certain modifications designed to meet the special features of the Indian Pay Code.
§ Other Ranks.
§ 7. Pay.
§ Under the Indian Pay Code, British Service Other Ranks receive their normal home rates of pay converted into rupees at a preferential rate of exchange of 1s. 4d. instead of the standard rate of 1s. 6d. This has the effect of increasing the value of their pay by one-eighth, and soldiers and airmen on the Indian pay code outside India are credited with the same increase.
§ Where pay, as thus increased, including war service increments and additional pay,* in issue on 30th June, 1946, exceeds the new rate of pay and additional pay plus the single accom-
§ * Excluding—
§ Indian Army allowance when drawn as a separate item.
§ R.A.F. extra duty pay of the nature of Indian Army allowance.
§ Local Allowances.
1369§ modated rate of local overseas allowance, the difference will be continued as a" war excess "so long as the man remains in what is now the Indian pay code area, subject to absorption as indicated in para. 66 (i) of Cmd. 6750.
§ This rule will apply to both single and married men
§ Marriage Allowance.
§ Other Ranks whose families are in India receive under the Indian pay code special rates of marriage allowance together with free accommodation, fuel and light, etc., or payment in lieu. While separated from their families as a result of service conditions, they receive also a separation allowance. If the families are not in India, the normal British rates and conditions of marriage allowance apply.
§ If the family is in India on 30th June 1946, and remains there, the soldier or airman will be allowed to continue to draw the Indian rate of marriage allowance together with his other present entitlements, but in that event he will receive only the single accommodated rate of local overseas allowance, and he will not receive the allowance referred to in para. 25 of Cmd. 6715 (as amplified by para. 36 of Cmd. 6750). He may elect at any time to be dealt with for marriage allowance purposes under the new British Code if that is more favourable to him, but, once such an election is made, it will be final.
§ If the family is not in India, or arrives in India after 30th June, 1946, the provisions of para. 5r (b) of Cmd. 6715 will apply.
§ Officers.
§ 8. Under the Indian code, the system of remunerating officers differs from that under the present and future British codes in that they receive special inclusive rates of pay, supplemented by lodging allowance (both subject to tax under the Indian tax code) out of which they are required to pay for their accommodation, rations, servant, furniture, fuel and light, and various other services. To assess the comparable British emoluments under the new code for the purpose of calculating a " war excess,"It is necessary, therefore, to take into consideration the value of services which the officer will in future receive either in kind or in the form of allowance.
§ Unmarried Officers.
§ For unmarried officers the comparison will be ma de as follows:
§ Indian Emoluments.
§ Pay.*
§ War Service Increments.
§ Lodging Allowance.
§ New British Emoluments.
§ Pay.*
§ Half composite lodging allowance.
§ Single accommodated rate of local overseas allowance.
§ Ration allowance (local rate).
1370§ For officers of the rank of Brigadier or above (and equivalent R.A.F. ranks) Entertainment Allowance at the standard rates (but not Table Money provided on an individual basis in supplementation thereof).
§ It has, therefore, been decided that, where an unmarried officer is on 30th June, 1946, in receipt of Indian emoluments as described above in excess of the new British emoluments as described above at the rates appropriate to an officer of his rank the difference will be continued, so long as he remains in what is now the Indian pay code area, as a war excess " subject to adjustment on the general lines of para. 66 of Cmd. 6750, with suitable modifications to suit Indian pay code conditions.
§ Married Officers.—For married officers there is a further difference between the Indian code and the present British code in that under the former married allowances have always-been subject to tax. The new rates of marriage allowance will, therefore, be more advantageous to officers who have been in receipt of such allowances under the Indian code than they will be to other officers. If, therefore, a married officer previously in receipt of emoluments under the Indian pay code were permitted, not only to retain his former more favourable rate of pay, but also to receive in addition an increased marriage allowance, he would gain a disproportionate advantage as compared with married officers hitherto paid under the British code.
§ It has, therefore, been decided that for married officers on Indian rates of pay the comparison for the purpose of assessing " war excess " shall be as follows:
§ Married officers with families outside the Indian pay code area.
§ Indian Emoluments.
§ Pay.*
§ War Service Increments.
§ Single lodging allowance.
§ Marriage/Family allowance.
§ New British Emoluments.
§ Pay.*
§ Local overseas allowance at single accommodated rate.
§ Half composite lodging allowance.
§ Ration allowance (local rate).
§ Marriage Allowance.
§ For officers of the rank of Brigadier or above (and equivalent R.A.F. ranks) Entertainment Allowance at the standard rates (out not Table Money provided on an individual basis in supplementation thereof).
§ Married officers with families in the Indian Pay Code Area but separated by the exigencies of the Service
§ Indian Emoluments.
§ Pay.*
§ War Service Increments.
§ Lodging allowance (married rate).
§ Marriage/Family allowance.
§ Separation allowance (if in issue).
§ New British Emoluments.
§ Pay.*
§ Local overseas allowance at married accommodated rate.
1371§ Half composite lodging allowance.
§ Ration allowance (local rate).
§ Marriage Allowance.
§ For officers of the rank of Brigadier or above (and equivalent R.A.F. ranks) Entertainment Allowance at the standard rates (but not Table Money provided on an individual basis in supplementation thereof).
§ Other Married officers with families in the Indian Pay Code Area.
§ Indian Emoluments.
§ Pay*.
§ War service increments.
§ Lodging allowance (married rate).
§ Marriage or family allowance.
§ New British Emoluments.
§ Pay*.
§ Local overseas allowance at married accommodated rate.
§ Ration allowance (local rate).
§ Marriage allowance.
§ For officers of the rank of Brigadier or above (and equivalent R.A.F. ranks) Entertainment Allowance at the standard rates (but not Table Money provided on an individual basis in supplementation thereof).
§ Where a married officer is on 30th June, 1946, in receipt of Indian emoluments as described above in excess of the new British emoluments as described above to which he is or might be entitled under the new code, the difference will be continued, so long as he remains in what is now the Indian pay code area, as a " war excess," subject to adjustment on the general lines of paragraph 66 of Cmd. 6750, with suitable modifications to suit Indian pay code conditions.
§ A single officer in receipt of a " war excess "In respect of Indian emoluments drawn on 30th June, 1946, who subsequently marries while still serving in what is now the Indian pay code area, will have his war excess recalculated from the date of marriage as if he had been married on 30th June, 1946.
§ Indian Transitional Allowance.
§ 9. The effect of the application of United Kingdom instead of Indian income tax will vary not only according to emoluments but also according as the officer or other rank is single or married and, if he is married, according to the size of his family. It is desired to mitigate the effect of this change, but it is clearly impracticable to adjust each case individually. After a very careful review of the effect of the arrangements explained in previous paragraphs in typical cases and of the altered incidence of tax in such cases, it has been decided on a broad basis that those who are in the Indian pay code area on 30th June, 1946, shall, from 1st July, 1946, be given a temporary allowance, to be known as Indian Transitional Allowance, which will be on a diminishing scale and will cease altogether on 31st March, 1950. The allowance is to be given only to those ranks where the net loss of emoluments would otherwise be unduly sudden. The allowance will be given to single and married alike in each rank and will be at the rates shown below. It will be subject to tax.
1372§ Indian Transitional Allowance will be issued also to those who arrive in the Indian pay code area on or after 1st July, 1946, with the object of reducing the divergency between their emoluments and the emoluments of those already serving in the area.
§ In view of the reorganisation of the categories and ranking of aircrew in the R.A.F., referred to in paragraphs 42 and 43 of Cmd. 6715, which will take effect from 1st July, 1946, it will be necessary, in some categories, to make additions to the rates of Indian Transitional Allowance payable in their case.
§ Married officers who are entitled under the new British code (Cmd. 6750, paragraph 66(ii)) to a supplementary marriage allowance with effect from 1st April, 1947, will receive that allowance from that date if not entitled to a more favourable Indian Transitional Allowance, but in no case will both allowances be issuable together.
| Indian Transitional Allowance will be at the following rates: | ||||||
| Rank. | Daily rates. | |||||
| 1.7.46 to 31.3.48. | 1.4.48 to 31.3.49. | 1.4.49 to 31.3.50. | ||||
| s | d. | s. | d. | s. | d. | |
| Army Officers— | ||||||
| General | 27 | 6 | 19 | 3 | 11 | 0 |
| Lt.-General | ||||||
| Major-General | 22 | 6 | 15 | 9 | 9 | 0 |
| Brigadier | ||||||
| Colonel | 20 | 0 | 14 | 0 | 8 | 0 |
| Lt.-Colonel | 17 | 6 | 12 | 3 | 7 | 0 |
| Major | 12 | 6 | 8 | 9 | 5 | 0 |
| Other Ranks— | ||||||
| Warrant Officer, Class I. | 3 | 0 | 2 | 0 | 1 | 0 |
| Warrant Officer, Class II. | 2 | 0 | 1 | 8 | 10 | |
| Staff Sergeant | 2 | 0 | 1 | 4 | 8 | |
| Sergeant | 1 | 0 | 8 | 4 | ||
| Corporal | 6 | 4 | 2 | |||
| R.A.F. Officers— | ||||||
| Air Chief | 27 | 6 | 19 | 3 | 11 | 0 |
| Marshal | ||||||
| Air Marshal | ||||||
| Air Vice | 22 | 6 | 15 | 9 | 9 | 0 |
| Marshal | ||||||
| Air Commodore | ||||||
| Group Captain | 20 | 0 | 14 | 0 | 8 | 0 |
| Wing Commander | 17 | 6 | 12 | 3 | 7 | 0 |
| Squadron Leader. | 12 | 6 | 8 | 9 | 5 | 0 |
| Flight Lieutenant | 5 | 0 | 3 | 6 | 2 | 0 |
| Flying Officer | 2 | 6 | 1 | 9 | 1 | 0 |
| Airmen (except Aircrew)— | ||||||
| Warrant Officer | 3 | 0 | 2 | 0 | 1 | 0 |
| Flight Sergeant | 2 | 0 | 1 | 4 | 8 | |
| Sergeant | 1 | 0 | 8 | 4 | ||
| Corporal | 6 | 4 | 2 |
§ Treatment on leaving Indian pay code area.
§ 10. The above arrangements will apply to officers and other ranks concerned only for so long as they are not posted away from the present Indian pay code area. On leaving the area on posting those who were serving on 30th June, 1946, will have their war excesses recalculated with reference to the emoluments which they would have been drawing under the present British code in the rank and appointment (or nearest comparable appointment) held on the 30th June, 1946. Should an officer or other rank leave the area on reposting and subsequently return to it, he will be treated in the same way as an officer or other rank entering the area for the first time.