New Delhi: Indian government has decided to pay its employees arrears arising from implementation of the 7th Pay Commission recommendations in one go in August salaries.
The government has already notified the 2.57-time hike in basic salary of one crore government employees and pensioners as per the 7th Pay Commission recommendations.
The pay hike has been made effective from January 1, 2016.
In an instruction, the Finance Ministry also said that the revised pay structure effective from January 1, 2016, would include the Dearness Allowance (DA) of 125 per cent provided in the pre-revised pay structure.
The rate of the first installment of DA under revised pay will be announced later.
"The arrears as accruing on account of revised pay consequent upon fixation of pay under CCS (RP) Rules, 2016 with effect from January 1, 2016, shall be paid in cash in one installment along with the payment of salary for the month of August, 2016, after making necessary adjustment on account of GPF and NPS, as applicable, in view of the revised pay," a finance ministry statement said.
In order to expedite disbursal of arrears, the instructions said the "arrear claims may be paid without pre-check of the fixation of pay in the revised scales of pay."
However, it added, that the facilities to disburse arrears without pre-check of fixation of pay will not be available for those public servants who have retired, resigned or dismissed after the date of implementation of the Pay Commission recommendations.
The minimum pay in central government with effect from January 1, 2016 will now be Rs18,000 per month, up form Rs7,000 per month.
At the highest level of Cabinet Secretary, the salary would go up from Rs90,000 a month to Rs2.5 lakh.
There shall be two dates for grant of increment - January 1 and July 1 every year - instead of the existing July 1 only.
The instruction further said that Income Tax would be deducted before payment of arrears.
Observing that the decision to dispense with the pre-check for pay fixation may result in overpayments of arrears, the instructions said that the disbursing officers should obtain an undertaking in writing from employees that excess payments would be recovered in case discrepancies were noticed subsequently.
As per the instructions, a decision on the revised rates and the date of effect of all allowances (other than Dearness Allowance) will be notified later.
"Until then, all such allowances shall continue to be reckoned and paid at the existing rates under the terms and conditions prevailing in the pre-revised pay structure as if the existing pay structure has not been revised..." it added.
The contributions under the Central Government Employees Group Insurance Scheme (CGEGIS), it said, would continue to be applicable under the existing rates until further orders.
The existing system on interest free advances for medical treatment, travelling allowance for family of deceased, Travelling Allowance (LTA) on tour or transfer and Leave Travel Concession (LTC) would also continue till further orders.