New Delhi: In what could bring cheers to lakhs of central government employees and pensioners, the Ministry of Finance on Friday said that arrears shall be paid in cash in one installment along with the payment of salary for the month of August, 2016, as per the 7th Pay Commission recommendation.
Ministry of Finance issued instructions for the implementation of recommendations of 7th CPC – fixation of pay and payment of arrears.
The Finance Ministry also said that the revised pay structure effective from January 1, 2016, would include the Dearness Allowance 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.
To expedite disbursement of arrears, it is decided that arrear claims may be paid without pre-check of fixation of pay in revised scales of pay, the ministry said in a circular.
However, facilities to disburse arrears without pre-check of fixation of pay won’t be available for Govt servants who have relinquished service on account of dismissal, resignation, discharge, retirement etc after date of implementation of Pay Commission’s recommendations.