Central government employees to receive enhanced pay and arrears today

NewDelhi: Diwali has been advanced for the central government employees by two months. At least so it seems. For, the government has decided to pay salary as per the seventh pay commission report with arrears on Wednesday, the last day of this month.

As many as 48 lakh employees will benefit from this decision. In addition, pensioners will get the seven months’ arrears as the government has decided to implement the report from January 1, last. The payment, however, will be subject to income tax and other deductions.

The government will collect revenue of the order of Rs 30,000 crores from these deductions.

It may be recalled that the commission had recommended 14 to 23 per cent increase in their basic pays. Allowances, however, will be given to them at the old rates pending decision by a committee which has been appointed to discuss and decide on this issue.

Bonus which has not been paid to 33 lakh employees for last two years will be also paid with the salary arrears. Those drawing salary to the tune of Rs 21,000 are only entitled to receive the bonus. All this will entail a heavy burden on the state exchequer.

On an average, the employees will pocket between Rs 15,000 and Rs 3 lakh as arrears per head. Although the government denies but it may increase the rate of inflation.

You may also Read: Saying no to 42% hike, trade unions to go ahead with nationwide strike