7th Pay Commission: Higher allowances dropped from today's cabinet meeting agenda

7th Pay Commission: Higher allowances dropped from today's cabinet meeting agenda
 

New Delhi: The Union government has dropped higher allowances proposal under the 7th Pay Commission from its today's cabinet meeting agenda at the last minute, the Finance Ministry officials involved with the process of higher allowances told The Sen Times on condition of anonymity.

The officials said recommendation of the Empowered Committee of Secretaries (E-CoS) headed by Cabinet Secretary P K Sinha on higher allowances, was due to come before the Union cabinet at its meeting today for formal approval.

However, the item was dropped from the agenda at the last minute, as Finance Minister Arun Jaitley is on an official visit to South Korea, they added.

However, they said that the Cabinet may decide on 7th pay commission allowances this month.

In June 2016, the Cabinet approved 14% pay and pension hike for central government employees and pensioners under the 7th Pay Commission recommendations with effect from January 1, 2016.

The decision on higher allowances was postponed by the Cabinet on that time because the 7th Pay Commission wanted abolition of 52 allowances and subsuming of another 36 allowances into larger existing ones out of total 196 allowances.

Employee unions were opposed it, which government complied with formation of the Committee on Allowances headed by Finance Secretary Ashok Lavasa in June 2016 to review the allowances.
The Committee on Allowances submitted its report to Finance Minister Arun Jaitley on April 27.

The report was then taken up by the Department of Expenditure for examination, following which it was passed on to the Empowered Committee of Secretaries set up to screen the 7th Pay Commission recommendations and to firm up the proposal for approval of the Cabinet.

The Empowered Committee of Secretaries was in the process of preparing the Cabinet note on higher allowances, which was completed on June 1.

The central government employees are now getting no new allowances (except Dearness Allowance) with their new pay structure till the cabinet nod.

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7th Pay Commission: Latest updates on higher allowance

7th Pay Commission: Latest updates on higher allowance

New Delhi: The Empowered Committee of Secretaries (E-CoS) will finally take up higher allowance report on June 1, said Shiv Gopal Mishra, secretary of the National Joint Council of Action (NJCA), which is a centralised union of several central government employees unions, who met the Cabinet Secretary P K Sinha.

The 'Committee on Allowances', which examined the 7th pay commission's recommendations on allowances, submitted its report to the finance minister Arun Jaitley on April 27.

The committee on allowances has suggested some modifications in some allowances that are applicable universally to all employees as well as certain other allowances which apply to specific employee categories, the finance ministry said in a statement.

However, the Committee's report on allowances under the 7th Pay Commission hasn't made public.
The committee on allowances report is being currently examined by the 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.

In June 2016, the government approved 14% pay and pension hike for central government employees and pensioners under the 7th Pay Commission recommendations.

The decision on allowances was postponed at that time because the 7th Pay Commission had recommended abolition of 52 allowances and subsuming of another 36 allowances into larger existing ones out of total 196 allowances. Employee unions were opposed.

Accordingly, the government implemented the recommendation of the 7th Pay Commission from January 1, 2016 in respect of basic pay and dearness allowances, other allowances continued to be paid at old rates.
So, the finance minister Jaitley referred allowances to the committee on allowances headed by Finance Secretary Ashok Lavasa in June last year.

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 National Joint Council of Action (NJCA) demanded the government to implement higher allowances without further delay with effect from January 1, 2016.

The NJCA also demanded HRA at the rate of 30%, 20% and 10% instead of 24, 16 and 8%.

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7th Pay Commission: Report on allowances to be placed before secretaries panel next week

7th Pay Commission: Report on allowances to be placed before secretaries panel next week
New Delhi: The report on allowances will be placed before the empowered committee of secretaries in the next week for screening, a finance ministry official told on Monday.

The empowered committee of secretaries to take up all issues of allowances, including house rent allowance (HRA), which has been submitted by Committee on Allowances headed by Finance Secretary Ashok Lavasa on its report under the recommendations of the 7th Pay Commission.

The Cabinet approved the setting up of Empowered Committee of Secretaries on January 13, 2016 to process the recommendations of the 7th Pay Commission in an overall perspective. Accordingly, the report of allowances will be screened by that Empowered Committee of Secretaries, the official said.
The finance ministry has set up a 13-member Empowered Committee of Secretaries (E-CoS) headed by Cabinet Secretary P K Sinha on January 27, 2016 on cabinet nod for processing the report of the 7th Pay Commission, which has bearing on remuneration of 47 lakh central government employees and 52 lakh pensioners.

The other members in the panel include secretaries from the Home Affairs and Defence ministry and secretaries of department of personnel and training, pension and PW, revenue, expenditure, posts, health, and science and technology. Chairman of Railway Board, Deputy CAG and Secretary (Security) in the Cabinet Secretariat are also on the panel.

"It will look at all the issues of allowances, including HRA and it will function as a Screening Committee to process the Committee on Allowances report with regard to all relevant factors," the official said.
"The report on allowances is now being examined in the Department of Expenditure. It will be completed shortly, we expect, the finance minister Arun Jaitley next week will hand over it to the Empowered Committee of Secretaries (E-CoS) to examine it and after consideration by the empowered committee of secretaries, the higher allowances shall be placed before the Cabinet for approval.," the official added.
The employees now get all allowances except dearness allowance at the old rates until the cabinet approval of higher allowances.

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