7th pay commission: Govt gears up to notify fatter allowances

New Delhi: The government is gearing up to notify the fatter allowances shortly for implementation under 7th pay commission recommendations, after it’s got cabinet nod.

The government has to notify higher allowances for central government employees shortly and allowances will get increased from next month, the finance ministry officials told.

The central government employees and pensioners got theirs arrears of basic pay and pension arising from implementation of the 7th Pay Commission recommendations in one go in August salaries and pension respectively. The hike in basic pay and pension has been made effective from January 1, 2016.

The higher allowances will be paid after getting report from the ‘Committee on Allowances headed by Finance Secretary Ashok Lavasa.

The ‘Committee on Allowances has been set up on July 22 for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance.

The committee on Allowances met up with the deadline of four months given to it by the cabinet to submit the report. It’s however currently are waiting for Finance Minister’s call about submission its report.

Sources in the Prime Minister’s Office (PMO) said the Finance Ministry asked to obtain report from the committee on Allowances and to prepare cabinet note in this regard.

Union Finance Secretary Ashok Lavasa also said beginning of this month, A committee headed by me is currently examining the Pay Commission’s recommendations on allowances and it will submit its report soon.

Allowances contribute 63 percent in the pay hike recommendation. When the allowance is not taken into consideration it will mean fewer amounts because the allowance which the commission proposed is very substantial. Accordingly, the central government employees get a little hike in pay now, so employees are pressing hard to issue it very shortly, said the sources in PMO.

The finance ministry officials also said that the quantum of allowances may not vary from those proposed by the 7th Pay Commission.

The committee on allowances sticks with the 7th Pay Commission’s recommendations on allowances, they confirmed.

The cabinet will also stick with the 7th Pay Commission recommendations on allowances like advances, the finance ministry officials added.

The higher allowances will be implemented with retrospective effect from August 2016 but the central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016, the finance ministry officials also said.

The committee on allowances proposed higher allowances from August 2016, which is likely to be accepted by the Finance Minister Arun Jaitley, they confirmed.

Moreover, arrears for higher allowances will be paid from August, the finance ministry officials assured.

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