The government has rejected a long-standing demand of the armed forces for higher Military Service Pay (MSP) for around one lakh personnel including Junior Commissioned Officers, military sources told PTI Tuesday.

They said the Army is anguished over the decision by the Finance Ministry, and will seek its review.

Around one lakh service personnel including 87,646 JCOs and 25,434 personnel from the Navy and the Indian Air Force will be affected by the decision.

The MSP was introduced to the services recognising their unique service conditions and hardships.

"The proposal for higher MSP for JCOs and equivalent rank of the Navy and IAF has been rejected by the Finance Ministry," said a source.

At present, the MSP has two categories -- one for officers and another for JCOs and jawans.