Arrears Of Salary Hike Under seventh Pay Commission To Be Paid In August

New Delhi: Although the salaries of the government employees will be paid in July as per the Seventh Pay Commission recommendations, the arrears from January 2016, will be disbursed only August onwards.

The central government is trying to balance out the burden of the seventh pay commission payout on the exchequer. Implementation of new pay scales recommended by the Seventh Pay Commission headed by AK Mathur estimated to put an additional burden of Rs 1.02 lakh crore, or 0.7 percent of GDP, on the exchequer in 2016-17, government has said.

The recommendations of the Pay Commission will have bearing on the remuneration of 47 lakh central government employees and 52 lakh pensioners.

There are reports doing the round that government will payout arrears of only the salary component and not allowances. 

The employees are anticipating at least Rs 24,000 take-home salary per month. In a meeting with the BJP’s labour wing Bharatiya Mazdoor Sangh, Jitendra Prasad, Union Minister of State for Personnel, Public Grievances, Pensions, had told the delegation that government would positively look into the demand of the central government employees. “The minister said we will consider the proposal of minimum pay of 24,000”, said Pawan Kumar, Regional Organizing Secretary.

The Bhartiya Mazdoor Sangh is the largest central trade union organization in India, and claims to have more than 10 million members.

The trade union also sought increase in the Multiplication Factor and changes in the HRA.

The Seventh Pay Commission under AK Mathur had proposed Multiplication Factor of 2.57, according to which the fitment of each employee in the new pay matrix is proposed to be done by multiplying his or her basic pay on the date of implementation by a factor of 2.57.