7th CPC Ad-hoc Arrears for Defence Personnel – Calculation with illustration

7th CPC Ad-hoc Arrears: Calculation and Illustration

The Ministry of Defence, in an effort to address the delay in payment of 7th Central Pay Commission (CPC) arrears for Defence Forces Personnel, has issued a new order. The order authorizes the payment of these arrears on an ad-hoc basis, ensuring that the personnel receive their rightful compensation without any further delay. This decision by the Ministry of Defence is a welcome relief for the personnel who have been anxiously awaiting their arrears, and it is hoped that this will pave the way for smoother and more timely payments in the future. (Click to view the order).

According to the official order, it has been decided that the arrears will be paid on an ad-hoc basis, which means that they will be paid at a temporary rate of 10% of the current basic pay. The Dearness Allowance, which is currently set at 125%, will also be included in the payment. This decision will bring some relief to the employees who have been eagerly waiting for their arrears payment.

As an illustration, let’s consider an example where the basic pay of an employee is 10000. To calculate the total pay, first we need to add 125% of the basic pay to itself, which comes out to be 22500. After adding the calculated amount, the total pay becomes 22500. Finally, to determine the amount of tax to be deducted from the total pay, we need to multiply it by 10%, which equals 2250. Therefore, the final pay after deducting tax would be 20250.

To receive the ad-hoc amounts mentioned above, one must have been actively employed as of January 1, 2016 and must remain employed from that point forward. Only those who meet these criteria will be eligible to receive payment for these additional funds.

To calculate the arrears, the pay drawn as of 01 Jan 16 will be taken into account. This includes the Pay in Pay Band, Grade Pay, Gp X Pay, MSP and NPA as applicable, along with 125% DA therewith. All of these components are considered for the purpose of calculating the arrears, ensuring that all applicable amounts are factored in to determine the final payment owed.

In the event of over-payment, if any, the excess amount will be adjusted against the pay and allowances due. This means that any extra payment made will be adjusted against the final computation of arrears on the revised pay scales, ensuring that there are no discrepancies or errors in the payment process. It is important to ensure that all payments are accurate and in accordance with the revised pay scales to avoid any confusion or issues down the line.