New Delhi: The Ministry of Finance on Friday said that arrears shall be paid in cash in one installment along with the payment of salary for the month of August, 2016, as per the 7th Pay Commission recommendation.

The Government has hiked the basic salary by 2.57 times of about 10 million government employees and pensioners as per the 7th Pay Commission recommendations. The pay hike has been made effective from January 1, 2016. The Finance Ministry said that the revised pay structure effective from January 1, 2016, would include the Dearness Allowance of 125 per cent provided in the pre-revised pay structure. The rate of the first installment of DA under revised pay will be announced later.

However, it added, that the facilities to disburse arrears without pre-check of fixation of pay will not be available for those public servants who have retired, resigned or dismissed after the date of implementation of the Pay Commission recommendations.

The minimum pay in central government with effect from January 1, 2016 will now be Rs. 18,000 per month, up form Rs. 7,000 per month. At the highest level of Cabinet Secretary, the salary would go up from Rs. 90,000 a month to Rs. 2.5 lakh.

There shall be two dates for grant of increment – January 1 and July 1 every year – instead of the existing July 1 only.