7th Pay Commission arrears to be paid off in one installment in cash

After declaring a 23.55 percent overall increase in salaries and pensions for more than 1 crore government employees and pensioners, in line with the 7th Pay Commission’s recommendations, it was announced today that the arrears will be paid in cash as one installment to employees.

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 BJP-led NDA government recently announced an overall increase of 23.5 percent in salaries and pension for over one crore government employees and pensioners in line with the Seventh Pay Commission’s recommendations, which left most services dissatisfied. The hikes will come with the August paychecks and be paid with effect from January 1, 2016.

In November 2015, within the overall hike of the 23.55-per cent, the pay panel had recommended increases of 16% in pay and 24 percent in pensions. The starting salary for new recruits at the lowest level has been raised to Rs. 18,000 from Rs. 7,000 per month. Freshly recruited Class I officers will receive Rs. 56,100. This reflects a compression ratio of 1:3.12 signifying that the pay of a Class I officer on direct recruitment will be three times the pay of an entrant at the lowest level.