Central government employees are going to have lots of money in their pocket this festival season.
The government on Tuesday ordered release of the second instalment of arrears due to employees and pensioners on account of the Sixth Pay Commission recommendations.
The pay commission had estimated the arrears to cost the government Rs 29,373 crore (Rs 293 billion). The second instalment amounts to 60 per cent of the arrears, the first — 40 per cent — was paid last fiscal.
Tuesday’s finance ministry order did not spell out a deadline for the money to be credited into accounts of employees. But the pension department has spelt out September-end as the deadline.
The decision will benefit 33 lakh employees and 40 lakh pensioners on the civilian side besides uniformed defence service personnel.
Government servants employed after January 2004 — when the new contributory pension scheme came into force — would, however, have to submit the form for registering under the new scheme to get their arrears.