Orders for release of pay arrears issued

The Ministry of Finance today issued the much-awaited orders for release of the second installment of arrears arising out of the implementation of the Sixth Pay Commission recommendations to all Central government employees.
When the pay commission recommendations were implemented in August last year, the government had directed that 40 per cent of the arrears, along with the total tax due, were to be paid in the 2008-09 financial year and the balance to be paid in 2009-10. “It has now been decided that the remaining 60 per cent of arrears may now be paid to the concerned government servants,” orders issued today by the ministry’s Department of Expenditure state.
The first installment has already been paid to the employees. The commission’s recommendations are being implemented with effect from January 1, 2006 and employees were entitled to arrears arising out of the pay difference.
Significantly, in the case of employees who joined the Central government on or after January 1, 2004, arrears would be released only after the individual concerned has deposited his application form with the competent authorities for registration to the New Pension Scheme, the orders state. The ministry had also issued a memorandum in this regard on August 17. As in the case of the first installment of arrears, government servants would be permitted to deposit their arrears in the GPF accounts. Though not mandatory, the ministry has encouraged employees to deposit their arrears in their GPF accounts.