Pay Commission arrears to be paid at one go

In June, the Cabinet had approved recommendations of the Seventh Pay Commission on pay and pensions for the central government's 4.7-mn employees and 5.3-mn pensioners

All pending arrears for central government employees in lieu of the pay and pension components of the Seventh Pay Commission would be paid at one go, said a finance ministry circular issued on Friday.

"The arrears as accruing on account of revised pay consequent upon fixation of pay under CCS (RP) Rules, 2016, with effect from 01.01.2016 shall be paid in cash in one instalment along with the payment of salary for the month of August 2016," the circular stated.

It also stated that the arrear claims would be paid without pre-check of the fixation of pay in the revised scales of pay.

In June, the Cabinet had approved recommendations of the Seventh Pay Commission on pay and pensions for the central government's 4.7-million employees and 5.3-million pensioners.

On an average, the hike in basic pay and pension will be 2.5 times the existing structure.

However, the existing dearness allowance will merge with the basic pay.

The Cabinet, however, deferred a revision in allowances. A committee headed by Finance Secretary Ashok Lavasa will look into the recommendations in this regard because there was resentment among employees over suggestions to scrap four allowances. Till then, existing allowances will continue.

The pay panel had recommended abolishing 52 allowances and subsuming another 36.