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Consequently, an estimated 4.6 million central government employees will receive a raise of 28-40 per cent over their existing basic pay. Employees will start receiving their higher salaries and allowances with effect from this September.

Sources added the first instalment of arrears of Rs 11,748 crore will be paid in cash with effect from September as announced earlier. There had been some apprehensions that with the upcoming fifteenth session of the Lok Sabha scheduled to begin on October 17, Parliamentary sanction for the additional spending sought under the supplementary demand for grants would somehow delay the arrears payment.


The business standards writes in its news “However, sources said the arrears would be paid from the salary account of the government.

The Cabinet had decided to issue arrears in cash over two years — 2008-09 and 2009-10 — with the first instalment of 40 per cent being paid by September and the balance next year.”

Read more at - http://www.business-standard.com/india/storypage.php?autono=332771&chkFlg=

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