The first installment of arrears as per the Sixth Pay Commission recommendations was deposited last month in the accounts of state government employees. But this has come with riders. Employees are irked because they will have to pay a tax on this additional income this year but they will be able to withdraw the money only after five years.
In June, Girish, a Class I state government employee at the Central Building received around Rs 56,000 -- which is 20 per cent of the total arrears due to him for the period of 39 months between January 1, 2006 and March 31, 2009.
“The government will spread the distribution of the arrears over five years and the money is deposited at the employees’ General Provident Fund (GPF). I will have to pay an additional tax of around Rs 5,600 this year, but this money will be made available to me only in 2015,” Girish said. His taxable income falls in the slab of Rs 1.5 to Rs 3 lakh, for which the rate is 10 per cent.
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