7th Pay Commission: Higher Allowances To Be Paid After Five-State Polls

New Delhi: Official sources in Finance Ministry told us on condition of anonymity that the central government will announce higher allowances under 7th Pay Commission award for the central government employees after the completion of five states assemblies’ poll process as the model code of conduct has come into effect from Wednesday.

The announcement is to come in March after eight to nine months of getting basic pay hike of the central government employees.

Sources, however, said the government had no plan to give allowances in arrears from August for the central government employees.

“There’s no arrears on allowances will be given to employees,” they confirmed.

Justice A K Mathur, Chairman, 7th Pay Commission had presented its report to Finance Minister Arun Jaitley in November, 2015 with the recommendations for 14.27 per cent increase in basic pay, the overall increase in salary, allowances and pensions is 23.55%. The increase in allowances will be higher by 63% while pensions will rise 24%.

The 7th pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances, so the government hiked the basic pay but referred hike in allowances other than dearness allowance to the ‘Committee on Allowances’ headed by the Finance Secretary Ashok Lavasa for examination.

The ‘Committee on Allowances’ has finalized the report on the allowances in October, however the government gave extension the committee till February 22, 2017 to submit its report for getting normalized the cash crunch position.

In the mean time, the Election Commission on Wednesday announced elections to state assemblies in Punjab, Uttarakhand, Uttar Pradesh, Goa and Manipur. The elections will be held between February 4 and March 8, the results of which – to be announced on March 11.

Chief Election Commissioner Nasim Zaidi also announced on Wednesday that the model code of conduct came into force with immediate effect.

The model code of conduct compelled the the central government to announce higher allowances in March.

Finance Minister Arun Jaitley is expected to announce the higher allowances in mid-March.

Currently, the central government employees are getting allowances according to the 6th Pay Commission recommendations.

However, the government has given higher basic pay with arrears, effective from January 1, 2016 to its employees on the recommendations of the 7th pay commission


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