New Delhi, August 31: Almost a month after Narendra Modi government issued a notification regarding arrears payable to retired Central government employees, pensioners got their revised pay on August 30 along with the overdue amount for last seven months from the period of January to July. Also Read - 'Serving Tea to Those Who Attacked Him Shows His Greatness', PM Modi Lauds RS Deputy Chairman

Around 47 lakh Central government employees and 53 lakh pensioners, including those who retired from the armed forces. The notifications about seven months arrears were issued on August 4 by the Central government. According to reports, the government has made a payment of Rs 34,600 crore to clear the arrears of pensioners and 47 lakh Central government employees. Also Read - Without Comprehensive Reforms, UN Faces 'Crisis of Confidence': PM Modi

“The combined outgo for the centre on account of arrears for January to July and payments for August will total to Rs. 346 billion (Rs. 34,600 crores),” Ind-Ra had said on August 17. Though salary and arrears are paid to 1 lakh employees, reports suggest that decision on allowances is pending and a high-level committee is expected to submit its report by the end of November. (Also Read: 7th Pay Commission: NJCA to pitch for 3.68 fitment factor to revise minimum pay in meeting with National Anomaly Committee) Also Read - Farm Bills Need of 21st Century, Says PM Modi; Assures Farmers on MSP

On June 29 when the 7CPC recommendations were accepted by the Union Cabinet, the officials decided to constitute a committee headed by Finance Secretary for further examination on allowances. There were reports that the committee will complete its work in a time-bound manner and will submit its report within a period of 4 months. Till the committee comes to a conclusion, all existing allowances will continue to be paid at the existing rates.

The payment of arrears in seven months could boost economic growth in the forthcoming quarters. There are chances that some sectors like bullion, automobile, real estate, consumer durables and travel and hospitality will benefit by employees and pensioners.

On the other side, state government employees have started demanding a similar pay hike. Some employees of PSU who are unhappy with Rs 18,000 minimum salary are all set to go on strike on September 2.