Finance Ministry Instructions for Pay Fixation and Payment of Arrears

Finance Ministry Instructions for Pay Fixation and Payment of Arrears

Government of India
Ministry of Finance
Department Of Expenditure
(Implementation Cell, 7 CPC)

Room No. 214, The Ashok
New Delhi, the 29th July, 2016

OFFICE MEMORANDUM

Subject: Implementation of the recommendations of the 7th Pay Commission- Fixation of pay and Payment of arrears – instructions Regarding

The undersigned is directed to refer to the Government of India, Ministry of Finance, Department Of Expenditure’s Resolution No. 1-2/2016-IC dated 25/07/2016, bringing out the decisions of the Government On the recommendations of the 7th Central Pay Commission as well as the consequent promulgation of the Central Civil Services (Revised Pay) Rules, 2016, notified vide G.S.R NO. 721(E) dated 25th July, 2016 regarding fixation Of pay in the revised pay structure effective from 01.01.2016 and to say the provisions governing such fixation Of pay have been clearly enunciated in the said Rules.

2. Accordingly in pursuance of the CCS (RP) Rules, 2016, appropriate necessary action to fix the pay of the employees covered thereunder in the revised pay structure needs to be carried out forthwith in accordance with the provisions contained therein. In order to facilitate a smooth and systematic fixation of pay, a proforma for the purpose (Statement of Fixation of Pay) is enclosed at Annexure. The statement of fixation of pay in revised pay structure as per CCS (RP) Rules, 2016 be prepared in triplicate and one copy thereof be placed in the Service Book of the employee concerned and another copy made available to the concerned accounting authorities [Chief Controller Of Accounts/Controller Of Accounts/Accounts Officer] for post-check.

3. The revised pay structure effective from 01.012016 includes the Dearness Allowance of 125% sanctioned from 01.01 2016 in the pre-revised pay structure. Thus, Dearness Allowance in the revised pay structure shall be zero from 01.01.2016. The rate and the date of effect of the first installment of Dearness Allowance in the revised pay structure shall be as per the orders to be issued in this behalf in future.

4. The decision on the revised rates and the date of effect of all Allowances (other than Dearness Allowance), based on the recommendations of the 7th Central Pay Commission shall be notified subsequently and separately. Until then, all such Allowances shall continue to be reckoned and paid at the existing rates under the terms and conditions prevailing in the pre-revised pay structure as if the existing pay structure has not been revised under the CCS (RP) Rules, 2016 issued on 25.072016

5. The contributions under the Central Government Employees Group Insurance Scheme (CGEGIS) shall Continue to be applicable under the existing rates until further orders,

6. The existing system on interest free advances for medical treatment, Travelling Allowance for family Of deceased, Travelling Allowance on tour or transfer and Leave Travel Concession shall continue as hitherto.

7. The arrears as accruing on account Of revised pay consequent upon fixation Of pay under CCS Rules. 2016 with effect from 01 012016 shall be paid in cash in one installment along with the payment Of salary for the month Of August, 2016, after making necessary adjustment on account of GPF and NPS, as applicable, in view of the revised pay. DDOs/PAOs shall ensure that action is taken simultaneously in regard to Government’s contribution towards enhanced subscription.

8. With a view to expediting the authorization and disbursement of arrears, it has been decided that the arrear claims may be paid without pre-check Of the fixation of pay in the revised scales of pay, However, the facilities to disburse arrears without pre-check of fixation of pay will not be available in respect of those Government servants who have relinquished service on account of dismissal, resignation, discharge, retirement etc. after the date Of implementation of the Pay Commission’s recommendations but before the preparation and drawl Of the arrears claims, as well as in respect of those employees who had expired prior to exercising their option for the drawal of pay in the revised scales.

9. The requirement of pre-check of pay fixation having been dispensed with, it is not unlikely that the arrears due in some cases may be computed incorrectly leading to overpayments that might have to be recovered subsequently. Therefore, the Drawing & Disbursing Officers should make it clear to the employees under their administrative control, while disbursing the arrears; that the payments are being made subject to adjustment from amounts that may be due to them subsequently should any discrepancies be noticed later. For this purpose, an undertaking as prescribed as per a “Form of Option” under Rule 6(2) of the CCS(RP) Rules, 2016 shall be obtained in writing from every employee at the time of exercising option under Rule 6(1) thereof,

10. In authorizing the arrears, Income Tax as due may also be deducted and credited to Government in accordance with the instructions on the subject.

11. On receipt of the necessary options, action for drawal and disbursement Of arrears should be completed immediately.

12. Hindi version will follow.

(R.K Chaturvedi)
Joint Secretary to the Government of India

Download : 7thCPC pay fixation and Payment of Arrears

READ : Fixation of pay of employees appointed on or after 1st January 2016

Source : Finmin.nic.in