Unit Run Canteens employees are not government employees

Press Information Bureau 
Government of India
Ministry of Defence 

Unit Run Canteens 

             Demands from various forums have been received for implementation of Sixth Pay Commission recommendations in respect of URC employees, however, these recommendations have not been accepted as URC employees are not government employees.
The sales
turnover and profit generated by CSD is as under:
(Rs. in Crore)
FY 2011-2012
FY 2012-2013


As URC employees are not Government employees. They are given pay and allowances as per the rules regulating the terms and conditions of the services of the civilian employees of the URCs, issued by Army Headquarters. Consequent to Sixth Pay Commission, the basic pay of all categories has been increased by 50% w.e.f. 01.02.2009 and 15% w.e.f. 01.12.2009. Another 15% raise has been given w.e.f. 03.04.2013.
This information was given by Defence Minister Shri AK Antony in a written reply to Shri Hukumdev Narayan Yadavin Lok Sabha today.



  • Manisha 2 years ago

    Employees in URC works alot.make profit.Thet. Work hard, regular but salary is very low. Givb e justice honorable court
    So people. Beleives in justice

  • With regard to the statement made by the Hon’ble Raksha Mantri in Lok Sabha, on 20 Aug 2013 my submissions are as under:-
    1. While disposing off civil appeal No 1039-1040 of 1999 in the matter of UOI Vs Md Aslam, Honb’le Supreme court given the following directions :-
    (a) Status of URC employees “ WE are of the considered opinion that the status of the employees in the Unit Run Canteen must be held to be that of a government employee”
    (b) Funds : “ But in the case in hand if the Canteen stores Department forms a part of the Ministry of Defence and if their funds form a part of the Consolidated fund of India and it is the said Canteen stores Department which provides fund as well as different article through the retail outlets of Unit Run Canteen then the employees who discharge the duties of salesmen in such retail outlets must be held to be employees under the Government”
    (c) Rules : “ Union of India to determine the service conditions of the employees in the Unit Run Canteens at an early date, preferably within six months from the date of this judgment”

    In view of Hon’ble Supreme court directions, Ministry of Defence formulated the rules which were circulated vide letter No 96029/Q/DDGCS dt 28 Apr 2003, as per para 18 (a) of letter says “ Mnimum scales available to employees in CSD(I) will be granted to Unit Run Canteen Employee.”
    The employees of CSD(I) are getting pay and allowances as per the 6th CPC, but the Unit Run Canteen employees have still not implemented the pay scales of 6th CPC and hence the Employees were demanding the implementation of 6th CPC.

    Hon’ble MP shri Hukum Dev Narayan Yadav had raised the right question but the Hon’be Raksha Mantri made its reply incorrect.

    In fact the Hon’ble Supreme court directions in the Civil appeal 1039-1040 of 4th Jan 2001 have not been implemented in later and sprit till date and the employees of Unit Run Canteens are being victimized by not allowing them pay & allowances as per 6th CPC like the employees of CSD(I).
    TS Chauhan, Ex Secretary General, AIDCCEU