7th Pay Commission: Suspense Over Higher Allowances

7th Pay Commission: Suspense Over Higher Allowances

New Delhi: Suspense over when would be higher allowances announced even one month 11 days passed after the 'Committee on Allowances' submitted its review report to Finance Minister Arun Jaitey.

The higher allowances were not part of the agenda for the union cabinet meeting yesterday because Finance Minister Arun Jaitley embarked on a four-day visit to Paris on Tuesday.

The higher allowances including HRA under 7th Pay Commission recommendations is now expected to be placed in the next cabinet meeting after Jaitley will return to India on June 10 from Paris.

The 7th Pay Commission proposals on salary and pension had already been approved in June 2016 with effect from January 1, 2016 but central government employees are now drawing allowances at old rates.
The 7th Pay Commission had recommended that of a total of 196 allowances, 52 be abolished altogether and 36 be abolished as separate identities by subsuming them in another allowance.

Employee unions were opposed it that governments complied with formation of the Committee on Allowances headed by Finance Secretary Ashok Lavasa to review it.

The Committee on Allowances submitted its review report this year on April 27.

The report was then taken up by the Department of Expenditure for examination, following which it was passed on to Empowered Committee of Secretaries (E-CoS) headed by Cabinet Secretary P K Sinha set up to screen the 7th Pay Commission recommendations and to firm up the proposal for approval of the Cabinet.

The Media reports said the Empowered Committee of Secretaries prepared the report on higher allowances for cabinet nod and the E-CoS dittoed the report of the committee on allowances but the report of the committee on allowances hasn't made public.

The committee on allowances also stuck with the 7th Pay Commission's recommendations on allowances, a Finance Ministry official involved with the process told The Sen Times on condition of anonymity.

The 7th Pay Commission also recommended slashing the House Rent Allowance (HRA) from 30, 20 and 10 per cent to 24, 16 and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.

The central government employees unions demanded HRA at the rate of 30 per cent, 20 per cent and 10 percent of basic pay instead of 24, 16 and 8 percent.

They also demanded the government to implement higher allowances without further delay with effect from January 1, 2016.

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7th Pay Commission: Will PM Narendra Modi give green signal for arrears on allowances?

7th Pay Commission: Will PM Narendra Modi give green signal for arrears on allowances?
After the submission of the report on the higher allowances under the 7th Pay Commission, the ball is now Prime Minister Narendra Modi's court.

Finance Secretary Ashok Lavasa led Committee on Allowances has submitted its report on higher allowances under the 7th Pay Commission and the government is most likely to accept it. Besides higher allowances under the 7th Pay Commission, the issue of arrears is also making central government employees worried. After the submission of the report on the higher allowances under the 7th Pay Commission, the ball is now Prime Minister Narendra Modi's court. The National Joint Council of Action (NJCA) chief Shiv Gopal Mishra will meet Cabinet Secretary P K Sinha today and discuss the arrears on allowances for the central government employees.

The report on hiked allowances under the 7th Pay Commission was submitted last week by Finance Secretary Ashok Lavasa. The report is being examined by the Department of Expenditure, and will be subsequently placed before the Empowered Committee of Secretaries (E-CoS). After the clearance, it will be sent to Union cabinet for approval. The Ashok Lavasa led panel held as many as 15 minutes with the representatives of National Council (Staff Side), Joint Consultative Machinery (JCM) and representatives of defence personnel in last 10 months.

The NJCA chief Shiv Gopal Mishra was hopeful about arrears for central government employees. "Arrears would mostly be provided to the employees. I will meet Cabinet Secretary tomorrow in this regard. He is heading the Empowered Committee of Secretaries which is scrutinising the report submitted by the Lavasa committee," Mishra told India.com. "No insights from the report is available so far. We (NJCA) would study the recommendations of the report tomorrow after meeting the Empowered Committee of Secretaries," he added.

"Modifications have been suggested in some allowances which are applicable universally to all Central government employees as well as certain other allowances which apply to specific employee categories," the Finance Ministry said in a statement on April 28. The 7th Pay Commission had suggested the abolition of 52 out of the 196 existing allowances, apart from subsuming 36 smaller allowances. The 7CPC panel led by Justice (retd) A K Mathur had also reduced the house rent allowance (HRA) from existing 10, 20 and 30 per cent to 8, 24 and 16 respectively.

The basic pay of the central government employees was hiked from January 1, 2016 as per the 7th Pay Commission recommendations, but for last 10 months, the central government employees have been waiting for the higher allowances. While the government has provided arrears since January 1, 2016, the scheduled date of 7th Pay Commission's implementation, NJCA has demanded a similar release of arrears on allowances as well. All eyes will be on PM Narendra Modi who may bring 'achhe din' for the central government employees announcing arrears on allowances.

Source: India.com

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