About NPO

Naval Pay Office was established as a Centralised Pay Accounting organisation to maintain pay accounts of all Royal Indian Navy personnel, in 1945 and the head of organisation named as Pay Master-in-Chief RIN Pay Office. It was set up in the Sanatorium Building, Versova, Andheri, Bombay, under the stewardship of the first Pay Master-in-Chief. In 1946, the officer‟s wing of the office was shifted to the Chicago Building, MG Road, Bombay. In the later part of 1946, both officers and sailor‟s wings were shifted to Fort Barracks, Bombay, adjacent to the old REX Cinema. On 15 Aug 47, this office was again shifted to Talwar Camp, the site of the present Naval Transport Pool. In 1950, the office was renamed as Indian Naval Pay Office. Finally, in 1952, the entire unit of the Indian Naval Pay Office was shifted to its present premise at Castle Park, adjacent to the Angre Fort. It was christened as Naval Pay Office, Bombay in 1956. The responsibility of maintaining the Provident Fund accounts for both officers and sailors, was transferred to the organisation, in Apr 1976, from JCDA (Funds), Meerut. In 1987, the responsibility of maintaining leave records in respect of officers was also added to the charter of duties of the organisation.

Role and Responsibility

The role and responsibility of NAVPAY are broadly defined in the Centralised Pay Accounting Manual (INBR 15) and the Financial Regulations Part II. The basic responsibility is to ensure correct authorisation and disbursement of various pay and allowances to all service personnel, as prescribed under rules, from the day of joining the service upto the date of retirement / release / demobilisation. NAVPAY is required to commence / cease entitlement as well as effect recoveries from pay accounts, on due dates, after receipt of specified documents. For this purpose, pay accounts in respect of all naval personnel are maintained by NAVPAY under Centralised Pay Accounting system introduced in 1945 and later ratified vide GOI Ministry of Defence No. AC/3985/NHQ/0023/D(N) dated 25 Jun 1954.

The centralised pay accounting system provides a continuous record of pay and allowances of all naval personnel throughout their service career, except for the deputation period to Embassies, certain other Govt departments etc. This system is operationalised through Individual Running Ledger Accounts (IRLA), where all types of transactions relating to pay & allowances are recorded. The accounts are closed every month with a view to arrive at the net entitlement at the end of the month after taking into accounts all credits / debits (i.e. Payments and recoveries / miscellaneous claims etc.). These IRLAs with respect to individual officers and sailors are called Individual Pay Accounts (IPAs) which represent the statement of account depicting all credits / debits pertaining to a month.


The main functions of the Naval Pay Office are as follows :-

  • To maintain the Centralised Pay Accounting System for adjustment and remittance of Pay and Allowances in respect of all the officers and sailors, on active list, of the Indian Navy. This includes compulsory recovery of subscription towards various funds, both Govt as well as non govt. from pay.
  • To maintain Provident Fund accounts of all naval personnel, including those on deputation
  • To maintain Annual Leave record in respect of officers
  • To maintain record of loans granted to naval personnel both Govt loan (like House Building, Scooter / Motor Car Advance etc) as well as specified Non-Public Fund loans (from NGIS, INBA, CBF etc) and effect monthly recovery of loan installments
  • To finalise Leave Encashment and the Provident Fund Accounts in respect of demobilised personnel.
  • To initiate pensionary procedures for demobilised / deceased officers and sailors at Single Window Documentation Cell.
  • To prepare monthly compilations of receipts and charges at Naval Pay Office and summary of Provident fund withdrawal transactions throughout the Navy.
  • To render advice to IHQ (Navy) on issues relating to pay and allowances.
Back to Top