Central staff to get final instalment of pay arrears

The Finance Ministry has given the nod for payment of the remaining 60 per cent of arrears to Central government employees as part of the implementation of the Sixth Central Pay Commission’s recommendations.

Second instalment
Over five million employees are likely to benefit from this second instalment.

However, for recruits after January 1, 2004, the second instalment of arrears (60 per cent) will be released only if they have registered for the New Pension Scheme (NPS), according to an office memorandum issued by the Department of Expenditure here today.

Under the Sixth Central Pay Commission award, arrears are being paid from January 1, 2006 to August 31, 2008. The revised pay-scales came into effect on January 1, 2006 and the revised rates of allowances on September 1, 2008.

Total payout
The total arrears amount is estimated at Rs 29,000 crore, to be paid in two instalments — 40 per cent during 2008-09 and the remaining 60 per cent in 2009-10.

As in the case of the first instalment of arrears, the Central Government employees have been permitted to deposit their arrears in their Government Provident Fund accounts. It is not mandatory for them to deposit the arrears in their GPF accounts, but they are being encouraged to do so.