The Unit Run Canteen (URC) employees are getting paid as per the rules regulating the terms and conditions of the services of the civilian employees of the URCs, issued by Army Headquarters in April 2003. These rules were made as per the directions of Hon`ble Supreme Court of India dated 4th January 2001, in the case of Union of India Vs. M. Aslam and others.
It has been held by the Hon`ble Supreme Court, in its order dated 28.4.2009, in the case of R.R. Pillai vs. Commanding Officer HQ SAC (U), that employees of URC are not Government Servants. Hence, the benefits of Sixth Pay Commission are not applicable to them. However, the basic pay of URC employees was enhanced by 50% w.e.f. 1.2.2009 and by another 15% w.e.f. 1.12.2009.
This information was given by Defence Minister Shri AK Antony in a written reply to Shri Veer Singh in Rajya Sabha today.