7th Pay Commission: Govt to pay salary arrears for 7 months in August

The Central government will be paying salary arrears for seven months to all Central government employees along with their August salary, while allowances for the time being will be paid without factoring in the 7th pay panel's proposals, according to a finance ministry update on Friday.

The Modi government had already accepted the salary hike effective from Jan. 1, 2016, as recommended by the 7th Central Pay Commission (CPC) for about 47 lakh Central government employees and about 52 lakh pensioners.

The salary arrears will include the 125 percent dearness allowance that was payable to employees before the recommendations of the 7th CPC. 

"The revised pay structure effective from 01.01.2016 includes the Dearness Allowance of 125% sanctioned from 01.01.2016 in the pre-revised pay structure," according to the finance ministry notification.

A different mechanism will be applicable for allowances, since the government has appointed a committee to look into the issue after talks with trade unions on June 30, which also saw the unions deferring their call for an indefinite strike (from July 11) by four months.

"The decision on the revised rates and the date of effect of all Allowances (other than Dearness Allowance), based on the recommendations of the 7th Central Pay Commission shall be notified subsequently and separately. 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 under the CCS (RP) Rules, 2016 issued on 25.07.2016," the July 29 notification further said.

Here is the full text of the notification:

Implementation of the recommendations of the 7th Central Pay Commission – fixation of pay and payment of arrears – instructions

7th CPC fixation of pay and payment of arrears —instructions- regarding

No.1-5/2016-IC
Government of India/Bharat Sarkar
Ministry of Finance/ Vitaa mantralaya
Department of Expenditure /Vyaya Vibhag
(Implementation Cell, 7th CPC)

Room No. 214, The Ashok
New Delhi, the 29th July, 2016

OFFICE MEMORANDUM

Subject: Implementation of the recommendations of the 7th Central Pay Commission — fixation of pay and payment of arrears – instructions – regarding.

The undersigned is directed to refer to the Government of India, Ministry of Finance, Department of Expenditure's Resolution No. 1-2/2016-IC dated 25.07.2016, bringing out the decisions of the Government on the recommendations of the 7th Central Pay Commission as well as the consequent promulgation of the Central Civil Services (Revised Pay) Rules, 2016, notified vide G.S.R No. 721(E) dated 25th July, 2016 regarding fixation of pay in the revised pay structure effective from 01.01.2016 and to say the provisions governing such fixation of pay have been clearly enunciated in the said Rules.

2. Accordingly, in pursuance of the CCS (RP) Rules, 2016, appropriate necessary action to fix the pay of the employees covered thereunder in the revised pay structure needs to be carried out forthwith in accordance with the provisions contained therein. In order to facilitate a smooth and systematic fixation of pay, a proforma for the purpose (Statement of Fixation of Pay) is enclosed at Annexure. The statement of fixation of pay in revised pay structure as per CCS (RP) Rules, 2016 be prepared in triplicate and one copy thereof be placed in the Service Book of the employee concerned and another copy made available to the concerned accounting authorities [Chief Controller of Accounts/Controller of Accounts/Accounts Officer] for post-check.

3. The revised pay structure effective from 01.01.2016 includes the Dearness Allowance of 125% sanctioned from 01.01.2016 in the pre-revised pay structure. Thus, Dearness Allowance in the revised pay structure shall be zero from 01.01.2016. The rate and the date of effect of the first installment of Dearness Allowance in the revised pay structure shall be as per the orders to be issued in this behalf in future.

4. The decision on the revised rates and the date of effect of all Allowances (other than Dearness Allowance), based on the recommendations of the 7th Central Pay Commission shall be notified subsequently and separately. 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 under the CCS (RP) Rules, 2016 issued on 25.07.2016.