As reported by The Indian Express, around one lakh army personnel including Junior Commissioned Officers will be affected by a demand rejected by the Finance Ministry to increase Military Service Pay (MSP).

Source: NDTV

This decision will impact around 87,646 Junior Commissioned Officers and 25,4343 personnel from the Navy and the Indian Air Force.

Source: Jagran Josh

Disheartened by the decision, the Army said in an interview with NDTV that it would seek a review of the government's decision. 

The initial demand was to increase the monthly MSP from ₹5,500 to ₹10,000. Had the Government accepted the demand, it would have had to shell out ₹610 crores from the treasury.

Source: Mathrubhumi English

MSP was introduced to compensate for the hardships and disadvantages that the Army goes through, which cannot be evaluated while assessing their pay comparability.

Source: India Today

The Army has been pressing for granting a higher MSP to the Junior Commissioned Officers since 2016. According to The Indian Express, the army believes that they are gazetted officers and that they play a vital role in command and structure of the Army. In 2016, the Army had taken up issues related to salaries including the 'anomalies' in MSP with the 7th Pay Commission.