New Delhi: Government of India has decided to pay the arrears arising from implementation of the 7th Pay Commission recommendations in August salaries in only one installment.
Central government has already notified the 2.57 times hike in basic salary of 1 crore government employees and pensioners according to the recommendation of 7th Pay Commission. The hike in pay has been made effective from 1st January 2016.
Finance Minister Arun Jaitley said that the arrears of 7th Pay commission which effect from 1st January 2016, shall be paid in cash in one installment along with the salary for the month of August, 2016.
The facilities to disburse arrears will not be available for those government servants who have dismissed, resigned or retired after the date of implementation of the recommendation of 7th Pay Commission.
The minimum pay in central government with effect from 1st January 2016 will now be Rs 18,000 per month from Rs 7,000 per month. At the highest level of Cabinet Secretary, the salary would go up from Rs 90,000 a month to Rs 2.5 lakh.
1st January and 1st July of every year shall be two dates for grant of increment – instead of the existing July 1 only.
The instruction also said that Income Tax would be deducted before payment of arrears of the 7th Pay commission.