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30.10.2016

7th Pay Commission Latest News: No fatter allowances for central govt employees before Diwali?

The special committee on fatter allowances under the 7th Pay Commission recommendations hasn't submitted its report till now.

New Delhi, Oct 28: Union Cabinet on Thursday approved a 2 per cent hike in the Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, in accordance with the accepted formula, based on 7th Central Pay Commission recommendations. After hike in DA, central government employees have now pinned big hope on special committee on fatter allowances. However the special committee on fatter allowances under the 7th Pay Commission recommendations hasn’t submitted its report till now.

There were reports that Finance Secretary Ashok Lavasa headed special committee on fatter allowances namely ‘Committee on Allowances’ would submit its report before Diwali, following which the government would issue notification for the implementation of the fatter allowances. However there is no update on when the ‘Committee on Allowances’ will submit its report to the Finance Ministry.

The 7th pay commission recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances. While issuing notification of the implementation of the 7th Pay Commission recommendations, Finance Minister Arun Jaitley formed ‘Committee on Allowances’ to for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance and asked to submit its report with in four months. (ALSO READ: 7th Pay Commission Latest News: This allowance is likely to be scrapped)

“A committee headed by me is currently examining the 7th Pay Commission’s recommendations on allowances and it will submit its report soon,” Ashok Lavasa said recently. The government is likely to accept the proposal of committee on allowances. The higher allowances will be implemented with retrospective effect from August 2016, however central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016.

Earlier we reported that the special committee report on fatter allowances recommended by the 7th Pay Commission is likely to be delayed because of ongoing tension between India and Pakistan. Since the government is busy in making defence activities post surgical strikes which escalated tension between India and Pakistan, the implementation of  the revised allowance recommended by the 7th Pay Commission is set to be delayed till November.

While the government has approved a 2 per cent hike in DA and DR before Diwali, central government employees will have to wait till November to get fatter allowances under 7th Pay Commission. The government issued the notification for the implementation of the 7th Pay Commission recommendations in July. The 7th Pay Commission notification confirmed that central government employees will get 14.27 per cent hike in basic pay at junior levels, which is the lowest in 70 years. The Cabinet also approved the increase in minimum pay Rs 18,000 from existing Rs 7,000.

By India.com News Desk | Published: October 28, 2016 6:00 AM IST