greater kashmir epaper 18/08/2016

Government may disburse Rs 34,600 crore to its employees in August salary as arrears because of implementation of the 7th pay panel recommendations, India Ratings and Research said today.

The government had last month announced that it will pay its employees arrears arising out of implementation of the 7th Pay Commission award at one go in August salary.

“The combined outgo for the Centre on account of arrears for January to July and payments for August will total Rs 34,600 crore,” Ind-Ra said in a statement.

The outgo due to the hike in salary and pension is unlikely to cause significant systemic liquidity disruption, it said.

The government has already notified the 2.57-time hike in basic salary for 1 crore government employees and pensioners as per the 7th Pay Commission recommendations. The pay hike has been made effective January 1, 2016.

greater kashmir epaper 18/08/2016: