Interest on arrears of 6th CPC deposited by Government servants in their GPF account

A copy of Ministry of Finance Department of Expenditure’s O.M.No.1/1/2008-IC dated 30th December, 2008 on the above subject, is enclosed for information and compliance. These instructions shall apply mutatis mutandis on the Railways also. Para 7 of Ministry of Finance, Department of Expenditure’s O.M. dated 30th August,2008 referred to in the enclosed O.M. has been adopted on the Railways vide para 8 of this office letter number PC-VI/2008/1/RSRP/1 dated 11.9.2008.

Copy of Ministry of Finance Department of Expenditure’s O.M.No.1/1/2008-IC dated 30th December, 2008

Sub: Interest on arrears of 6th CPC deposited by Government servants in their GPF account, clarification regarding.

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            Vide Para 7 of this Department’s Office Memorandum of even number dated 30th August,2008 on the subject caption “Implementation of Sixth Central Pay Commission recommendations – fixation of pay and payment of arrears – instructions regarding”, instructions were issued that in case a Government servant wishes to deposit his arrears in his General Provident Fund account (GPF a/c), he may be permitted to do so. Clarifications are now being sought by some departments as to whether the amount of arrears so deposited by the Government servants in their GPF account will earn interest. In this connection, it is clarified that the OM dt 30-08-2008 does not specify otherwise , and as such the amount of arrears deposited by Government servants in their GPF account will earn interest. Such interest will be payable from the date of deposit of the arrears in the GPF account.

All Ministries/Departments are requested to bring this to the notice of their subordinate/attached offices.