7th Pay Commission: New allowances, new hopes for central govt employees

New Delhi: After long wait, the 7th Pay Commission award has been implemented excluding allowances, which is likely to be implemented from October 1, it has increased new hopes among the central government employees that their allowances will soon rise.

The Union Cabinet cleared the recommendations of 7th Pay Commission in respect of the hike in basic pay and pension on June 29 but decision on its suggestions relating to allowances has been referred to the committee on allowances headed by Finance Secretary Ashok Lavasa for examination allowances other than dearness allowance because the pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances.

“The committee has been asked to submit its report within four months. Its two meetings were already held on August 4 and September 1 respectively and the committee is likely submit its report in this month,” a top Finance Ministry’s official told the Sen Times.

“Allowances contribute 63 percent in the pay hike recommendation. The allowances which the commission proposed is very substantial. So, the central government employees now get a little hike 14.28 per cent in pay but the finance ministry will soon move the Cabinet with changes in allowances providing for full compensation to the central government employees after getting the report from the committee on allowances,” confirmed the official.

Government jobs in India have been less rewarding in terms of pay and allowances. Apart from a sense of job security and perceived power, most of the employees have to struggle to make ends meet with the cost of living going up every year.

The central government employees are seeing inflation catch up with their pay rises as the cost of living rises faster despite of government figure.

With the current basic pay hike and steep inflation, it is not possible for central government employees to make ends meet. It is also impossible to sustain with their current basic pay without hike in allowances. Inflation has climbed steadily over the past few years, which the new allowances will help to compensate.

Accordingly, the new allowances will hopefully attract central government employees to live with dignity and the quality of service delivery in central government offices is expected to improve which will in turn contribute to higher productivity and growth for the nation.

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