New Delhi, Aug 25 The Central Government on Tuesday announced that it would pay the second installment of the Sixth Pay Commission arrears to its employees, estimated to be about five million employees.

The step will put a burden of over Rs 17,500 crore on the exchequer.

The Government has so far paid only 40 per cent of the arrears, and in a notification, it asked employees to apply for the remaining 60 per cent of the arrears, which has to be paid as the government implemented the new pay scales with effect from January 1, 2006.

"As in the case of the first installment of the arrears, government servants would be permitted to deposit their arrears in their GPF (General Provident Fund) accounts," said a Finance Ministry's office memorandum.It has now been decided that the remaining 60 per cent of the arrears may now be paid to the concerned government servants," the memorandum added.

About 3.8 million Central Government pensioners (excluding armed forces) as estimated by All India Central Government Pensioners Association (AICGPA) will also get their final installment of arrears.

The memorandum, however, didn't mention any date on which the arrears would be paid. (ANI)