7th Pay Commission: New allowances likely to be announced

New Delhi: The government is likely to announce to raise allowances for 4.8 million central government employees ahead of festive season of Dussehra.

The announcement will come along with the approval of the bonus, a top Finance Ministry’s official today told the Sen Times.

“All new allowances is likely to propose doubling of existing rates of allowances,” he said.

“The government had set up a ‘Committee on Allowances’ under the chairmanship Finance Secretary on July 22 for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance because the pay commission had recommended abolition of 51 allowances and subsuming 37 others after examining 196 allowances” he added.

He also said the committee is likely to submit its report to the Finance Minister Arun Jaitley within 15 days.

The two meetings of the committee were held on August 4 and September 1, after the second meeting, Shiv Gopal Mishra, Secretary (Staff Side) said, “Let us believe that, after the meeting, report of the said committee would be sent to the Government of India for its acceptance.”

The central government employees unions demanded in the second meeting that House Rent Allowance be fixed at range 10 to 30 per cent of the basic linked to the classification of the town of posting, children education allowance of Rs. 3,000 and hostel subsidy of Rs.10,000. All these allowances should be tax exempt.

They also demanded inclusion of post-graduate and professional courses in children education allowance.

The unions demanded for implementation of the allowances with retrospective effect from January 2016. However, there is a usual practice to pay the allowances from the date of implementation.


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