JOIN USIn yet another bonanza to the Central government employees, the arrears related to the 7th Pay Commission will be paid in a single instalment with the August salary, the finance ministry said on Friday.
The increase in salary for the Central government employees under the pay commission is effective from January 1, 2016.
“The arrears shall be paid in cash in one instalment along with the payment of salary for the month of August, 2016, after making necessary adjustment on the account of GPF and NPS,” a ministry statement said.
Last month, Finance Minister Arun Jaitley had said that the arrears will be paid this year after the Cabinet approved the implementation of the 7th Pay Commission, which had recommended an overall hike of 23.5%.
The increase in salaries, allowances and pension is expected to cost the exchequer an additional Rs 1.02 lakh crore or nearly 0.7% of the GDP this year.
The minister said that the government has made provision for a bulk of this money in the budget for 2015-16.