This means that more than 10 lakh Central Government employees and pensioners eagerly waiting for the salary hikes will be paid from August 1.

Arrears shall be paid in cash in one installment along with the payment of salary for the month of August, 2016, under 7th Pay Commission.

Ministry of Finance issued instructions for the implementation of recommendations of 7th CPC – fixation of pay and payment of arrears

The government has already notified the 2.57-time hike in basic salary of the 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.

In order to expedite disbursal of arrears, the instruction said the “arrear claims may be paid without pre-check of the fixation of pay in the revised scales of pay”.

However, it added, 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 from Rs 7,000. 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.

The instruction further said income tax would be deducted before the payment of arrears.