Excelsior Correspondent
JAMMU, Dec 8: The State Government has released a whopping amount of Rs 900 crores to clear second installment of the arrears of over 4.5 lakh Government employees on account of Sixth Pay Commission during the current financial year. With this, the total amount released for the employees and pensioners this year for two installments of Dearness Allowance (DA) and Pay Commissioner arrears has gone up to Rs 1800 crores.
Official sources told the Excelsior that the Government has released entire amount of Rs 900 crores to clear second installment of all Government employees and pensioners for the arrears of Sixth Pay Commission. The installment had to be debited to the GPF account of the employees and paid in cash to the pensioners.
The Government has last year agreed to clear the arrears of Sixth Pay Commission due to its employees and pensioners in five equal installments of 20 per cent each spread over a period of five years. The first installment costing Rs 900 crores to the Government was paid to the employees during the financial year of 2011-12.
Two installments released in favour of the employees and the pensioners during 2011-12 and 2012-13 had cost the State exchequer Rs 1800 crores. The Government would bear a burden of Rs 4500 crores spread over a period of five years to clear all five installments of 20 per cent each in favour of employees and pensioners arising out of the implementation of Sixth Pay Commission recommendations.
As per an agreement reached earlier between the Government and representatives of the employees, the Government had to clear Sixth Pay Commission arrears to its employees and pensioners in five equal installments of 20 per cent in a time frame of five years. The installments would be debited to the GPF account of the employees but there would be no bar on their withdrawals.
The Government had kept budgetary provision of Rs 900 crore for meeting the requirement of the employees.
The Government had released Rs 500 crore for payment of 7 per cent DA installment to the Government employees, which was due from July 1 this year and Rs 400 crore for the installment, which was paid from January 1, 2012. The only DA installment, which would be due on January 1, 2013, is to be paid to the employees now, sources said, adding that the installment would be paid from the budget of next financial year i.e. 2013-14.
The Government has already set up a Cabinet Sub Committee (CSC) to discuss demands and problems of the Government employees and the pensioners from time to time. The CSC meets when required to take decision on some demands and problems of the employees. However, it has left to the Cabinet to all important demand of the employees for rising their retirement age from 58 years to 60 years at par with the Central Government staff.
Sources said the Government would also keep budgetary provision of Rs 900 crores in 2013-14 financial year for making payment of third installment of 20 per cent arrear of Sixth Pay Commission to the employees and pensioners.
Earlier, the Government had decided to pay Sixth Pay Commission arrears to the employees in five equal annual installments of 10 per cent each with every installment debited to the GPF account and bar on its withdrawal. There was no word on remaining 50 per cent arrears.
However, the Government had revised the agreement later and agreed to pay 100 per cent arrears in five years with 20 per cent annual installment and also waived off the condition of withdrawal from the GPF.
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