New Delhi: Finance minister Amit Shah on Tuesday approved the proposal of the payment of all 7th Central pay Commission allowances to the government employees of J&K and Ladakh — the two newly created union Territories of the country. The decision will come into effect from October 31.

Both the union territories will come into existence from October 31. On August 5, Centre reorganised Jammu and Kashmir and bifurcated the erstwhile state into two union territories — J&K and Ladakh.

Around 4.5 lakh government employees will benefit from this announcement. This will cost the government exchequer around Rs 4,800 crore.

The Centre recently announced a 5% hike in dearness allowance (DA) as well as a salary hike for over 50 lakh central government employees on recommendations of the 7th Central Pay Commission (CPC). The Uttar Pradesh government, in an almost similar step, announced a salary hike by up to Rs 1 lakh for a section of government employees.

The 7th Central Pay Commission, also called the 7th Pay Commission, was constituted in February 2014 to review the principles and structure of emoluments of all central government civilian employees including defence forces in India. It submitted its report on November 19, 2015.

(With Agency Inputs)