7th Pay Commission : Contrary to what was widely speculated in the media, the central government employees need not worry about getting their deficit as per the recommendation of the 7th Pay Commission.

There were a lot of assumptions on the disbursement of arrears to gov employees. Reports had earlier stated that 10 percent of arrears will be deducted and be accumulate in NPS, hinting thereby that employees will get 10% less arrears than has been calculated.

However, while the Cabinet on Wed approved the Commission’s recommendation of enhancing ceiling of house building loan from Rs 7.5 lakh to Rs 25 lakh, the advice of deducting Rs 1,500-5,000 per month towards group insurance was not accepted.