Tuesday, August 25, 2009


Government of India
Ministry of Finance
Department of Expenditure
Implementation Cell

Payment of second instalment of arrears on account ofimplementation of Sixth Central Pay Commission'srecommendations.

As communicated vide this Department's Resolution No.l/l/2008-ICdated 29th August, 2008, the Government had decided that the arrears onaccount of implementation of Sixth Central Pay Commission's recommendationswill be paid in cash in two instalments - first instalment of 40% during the year2008-09 and the remaining 60% in the financial year 2009-10.The first instalmentbas already been paid in 2008-09. It has now been decided that the remaining60% of arrears may now be paid to the concerned Government servants.

2. Further, as already stipulated vide this Department's O.M. No.1(2)/ EV/2008 dated 17th August, 2009, in the case of post-01.01.2004 entrantsinto the Central Government, the second instalment of arrears may be releasedonly after individual application forms for registration to the New PensionScheme have been obtained by the DDO/PAO from the concerned Governmentservant.

3. As in the case of the first instalment of arrears, Government servants willbe permitted to deposit their arrears in their GPF Accounts. Though notmandated, Government servants are encouraged to deposit their arrears in their GPF accounts



  1. Ordnance Factory Karmachari Union Congradulate
    Shri.Ashok Singh, Shri.R.Srinivasan and the INDWF team for their hard work and achievement.
    The timely action is also highly appreciated

  2. Being the entrants of Government Service on or after 01/01/2004 we are compulsorily fall under the New Pension Scheme. Being fully controversial in its formulation, the New Pension Scheme is yet to be accepted by our parliament and the basic postulates of the Scheme need to be fully regularized.

    Now for the purpose of the registration and allotment of PRAN(Permanent Retirement Account Number) the Ministry Of Finance instructed vide its departmental O.M cited under reference (2) stated that, “in the case of post-0l/01/2004 entrants into the Central Government, the second installment of arrears may be released only after individual application forms for registration to the New Pension Scheme have been obtained by the DDO/PAO from the concerned Government servant.” this is totally against the Principle of Natural Justice and being the model employer of the State, the Government of India should not impose ill conceived office procedures in regard to the New Pension Scheme, in a forceful manner to its employees as it is required.

    As the payment of 60% arrears to the central government employees is arising only out of the implementation of the Sixth Central Pay commission and not because of the post entrants and pre-entrants of Government services on or after 01/01/2004. This is absolutely against the Article 14(1) of the Constitution of India which envisages that, “The State shall not deny to any person equality before the law or the equal protection of the laws within the territory of India.”.
    In a stage when there is no clear cut operating procedures and with the question of who is going to be managing the funds of the New Pension Scheme still uncertain, in this scenario these kind of forcible instructions from the democratic state, is seriously viewed by this innocent category of Central Government Employees as highly undemocratic and feel insecure about their future life. It is the duty and obligation of the State and its Departments to establish its requisite office procedures by means of very transparent and in an informative manner to the beneficiaries of the of any Scheme (like New Pension Scheme), but not in the way of simply bifurcating the Central Government Employees as post entrant and pre entrants of the Government Service based on their appointments and putting a precondition for paying their legitimate payment arrears which shall deviate the role of the welfare state from the basic goal of social equity and public welfare.