7th Pay Commission: Central government employees blame government for delay in higher allowances implementation

7th Pay Commission: Central government employees blame government for delay in higher allowances implementation

New Delhi: : A top most central government employees union leader on Friday said central government had been the villain in the implementation of the 7th Pay Commission recommendations in respect of higher allowances and employees had every right to demand arrears on higher allowances.

"The government had delayed in the implementation of the higher allowances. It had failed to handle the financial situation of the employees, according to arrears on higher allowances should be paid," the leader said.

"Earlier the Finance Minister Arun Jaitley had claimed it must implement after four months of the basic pay hike but it failed to come true," the leader added.

More than 18 to 19 months had passed since the 7th pay commission report was submitted and twelve months had elapsed since the union cabinet approved the 7th Pay Commission recommendations for salary hike of central government employees, but the Cabinet approved the recommendations on allowances on June 28 this year, which are being paid to the employees from July, 2017 without arrears.

The government has given higher basic pay in August 2016 with arrears, effective from January 1, 2016 to its employees on the recommendations of the 7th pay commission but the hike in allowances other than dearness allowance had referred to the 'Committee on Allowances' headed by the Finance Secretary Ashok Lavasa for examination as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

Finance Secretary Ashok Lavasa had said in October 2016, "We are ready to submit our report, when the Finance Minister Arun Jaitley calls up."

But the government had gave extension to the committee up to February 22, 2017 on the pretext of demonetisation and the government said that the cash crunch was the reason behind the delay in announcing higher allowances.

The announcement of assembly elections in five states had also given an excuse for the government as it couldn’t announce pay hikes till the model code of conduct is in place up to March 8.
The government was using delaying tactics to save the government money to pay higher allowances without arrears from August 16.

The delayed implementation of allowances have saved the government nearly Rs 40,000 crore.
The delay in the implementation of allowances is chiefly because of the financial gains of the government, while financial condition of the government is very sound.

The delay in implementation of the higher allowances has caused tremendous irritation and frustration among employees and they also expressed their resentment over the the announcement of non payment of arrears on allowances.

TST

Read More

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.

Read More

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.

Read More

7th Pay Commission: No scope to change in higher allowances

7th Pay Commission: No scope to change in higher allowances

New Delhi: Finance Ministry sources today said on condition of anonymity, there is no scope to change in higher allowances, which were recommended by the 7th Pay Commission.

The sources came up with the remark while talking to us about hiking of allowances of all central government employees and officials by the Empowered Committee of Secretaries (E-CoS) better than the 7th Pay Commission recommendations.

Those who will hope over these issues will gain nothing but no change in 7th Pay Commission recommendations on allowances are very much hiking possible, they added.

Replying to a question, the sources said, "The demand of central government employees to hike in allowances than the 7th Pay Commission recommendations is likely not to be considered by the secretaries panel."

"The central government finally decided not to give any facility to central government employees better than the 7th Pay Commission recommendations. Accordingly, the government stuck with the 7th Pay Commission recommendations on pay scales and advances and its implementation have been made forcefully.
Moreover, the government is now engaged in forceful implementation of allowances, which was recommended by the 7th Pay Commission," the finance ministry sources added.

The sources also said that the quantum of allowances may not vary from those proposed by the 7th Pay Commission as the committee on allowances headed by Finance Secretary stuck with the 7th Pay Commission's recommendations on allowances.

The Government will not necessarily be bound by the findings of the Empowered Committee of Secretaries on allowances, the sources confirmed.

"The Empowered Committee will make its proposal," source said. "government will make the decision."
In late June, after implementing the 7th Pay Commission proposals on salary and pension, Finance Minister Arun Jaitley had announced the 'Committee on Allowances', headed by Finance Secretary Ashok Lavasa to examine the suggestions on allowances. It had time till October to give the report but this got delayed.

The decision on allowances was postponed because the 7th Pay Commission wanted a number of these to be abolished or subsumed. Employee unions were opposed.

The 'Committee on Allowances' submitted its report to finance minister Arun Jaitley on April 27.
However, the Committee's report on higher allowances under the 7th Pay Commission haven't made public.
The report on allowances is now examined by the Empowered Committee of Secretaries (E-CoS) headed by the Cabinet Secretary P K Sinha and after it, it will be placed before the Cabinet.

Shiv Gopal Mishra, secretary of the National Joint Council of Action (NJCA), which is a centralised union of several central government employees unions, met with the Cabinet Secretary recently for inordinate delay on implementation of allowances.

The Cabinet Secretary assured Mishra that the Empowered Committee of Secretaries is likely to take a final decision on higher allowances by June 1.

The central government employees now get all allowances except dearness allowance, according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

Read More

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

Read More

7th Pay Commission: Government ready to implement Higher Allowances

7th Pay Commission: Government ready to implement 'Higher Allowances'

New Delhi: Giving the hint that government is all set to implement higher allowances, Finance Ministry sources said that ‘higher allowances' will have no impact on inflation.

Finance Ministry sources today said the government is ready to implement the higher allowances from May after receiving the report of Committee on Allowances.

"Over 47 lakh central government employees and 52 lakh pensioners will benefit by final report on allowances," the sources added.

After the government implemented the recommendation of the 7th Pay Commission from January 1, 2016 in respect of basic pay and dearness allowances, the Committee on Allowances, headed by Finance Secretary Ashok Lavasa was constituted in June last year.

The 7th Pay Commission had recommended abolition of 52 allowances and subsuming 37 others out of 196 allowances, which triggered resentment among central government employees that governments complied with formation of the Committee on Allowances.

It's been almost ten months and the Committee on Allowances has not yet set a date for the submission of the report on allowances to Finance Minister Arun Jaitley. However, the committee was initially given four months time to submit the report to Finance Minister.

Read More

7th Pay Commission: Demanding higher allowances is realistic says Finmin

7th Pay Commission: Demanding higher allowances is "realistic" says Finmin

7^th CPC

New Delhi: The central government employees unions demanding higher allowances, a realistic view of what government can afford, the Finance Ministry sources have confirmed.

Speaking to senior Finance Ministry sources were keen to the demands being met, insisting the work of the ‘Committee on Allowances’ to submit its final report within May, will determine what is doable.

"The government has a lot of pressures on the purses this year and higher allowances obviously is a key one. Demands are reasonable and realistic. But the government will not be held hostage," said one senior source last night.

They told "The issue of higher allowances is currently under consideration by the 'Committee on Allowances'.
In line with their mandate, the committee will produce a report within May.

This report will form the basis of negotiations with the central government employees unions. Any higher allowance settlement emitting from these negotiations must be affordable and sustainable.

The National Joint Council of Action (NJCA), which is a centralised union of several central government employees unions, has told cabinet secretary that the higher allowances must be given with retrospective effect from January 1, 2016.

The committee will have regard to the national finances before accepts NJCA above demand, the source said.

The central government employees unions had threatened to call for nationwide strike in May due to delay in implementation of higher allowances.

In response to this, the sources said, "the government expects the 'Committee on Allowances' to report by May or even before then. They are going to be very difficult discussions and negotiations."

The 'Committee on Allowances', headed by Finance Secretary Ashok Lavasa was formed in July last year for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance as the pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances.

The committee was initially given four months time to submit the report to Finance Minister Arun Jaitley.
Later, the Finance Minister Arun Jaitley extended the deadline for report submission to February 22, 2017 but committee has not yet submitted its report.

The central government employees got theirs arrears of basic pay arising from implementation of the 7th Pay Commission recommendations in one go in August salaries. The hike in basic pay has been made effective from January 1, 2016 but they are still awaiting for the higher allowances.

The employees now get all allowances except dearness allowance, according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

Read More

7th Pay Commission: Employees unions to strike for higher allowances

7th Pay Commission: Employees unions to strike for higher allowances

7th Pay Commission

New Delhi: The central government employees unions, aggrieved over the delay on higher allowances under the 7th Pay Commission recommendations, may call for nationwide strike if the Committee on Allowance fails to submit its final report within this month.

The Committee on Allowances is likely to submit its report on higher allowances under the 7th Pay Commission to the Finance Ministry this week, media reported.

But there is no official confirmation in this regard.

It's been almost nine months since the formation of the Committee on Allowances, but it is yet to submit its report.

The government in July last year had formed the 'Committee on Allowances', headed by Finance Secretary Ashok Lavasa, for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance as the pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances.

The committee was asked to submit its report within four months, but later its tenure was extended to February 22, this year.

However, the Finance Secretary Ashok Lavasa said in October last year, "We are ready to submit our report, when the Finance Minister Arun Jaitley calls up."

Meanwhile, the National Council Staff Side has called a meeting on May 2 of the Joint Consultative Machinery (JCM) to discuss the next course of action if the Committee on Allowance further delays report.
National Joint Council of Action (NJCA) convenor Shiv Gopal Mishra said the central government employees might go on strike if the Committee on Allowances delays the report further or rejected their demands.

The National Joint Council of Action (NJCA) is an umbrella organisation of various Central Government employees unions, including Railways, post and telegraph and Income Tax.

The NJCA is leading the negotiation over 7th Pay Commission on behalf of central government employees.
"The JCM meeting is called on May 2. Whether the Lavasa Committee submits it report or not (by the end of the month), the meet would be held.

If the report on allowances is not tabled, then we will plan the next step of action. I cannot rule out the option of reviving the call for strike.

After all, how long should the employees wait?" said Shiv Gopal Mishra.

The issue of hike in minimum pay would also be discussed at the JCM meet.

"It is the centrifugal issue. All pay commission so far had kept the issue of minimum salary at the centre. We will negotiate with the government and attempt to persuade them," he said.

Central government employees are unhappy because of the pay commission recommendation of reducing the house rent allowance (HRA) to 24%, 16% and 8% of basic pay as against the 30%, 20% and 10% of basic pay employees were drawing under the Sixth Pay Commission.

It is noted that central government employees unions also demanded for hiking minimum pay Rs 18,000 to Rs 26,000 and they asked to raising fitment factor 3.68 times from 2.57 times approved by the government based on the pay commission recommendations.

If the 2.57 fitment formula is tinkered with, then salary and pension in general for all central government employees will go up.

Read More

7th Pay Commission: After higher allowances and pensions, NJCA to negotiate minimum salary of Central Govt employees

7th Pay Commission: After higher allowances and pensions, NJCA to negotiate minimum salary of Central Govt employees

The National Joint Council of Action (NJCA), which is leading the negotiation over 7th Pay Commission on behalf of Central Government employees, has not boycotted the issue of minimum salaries. Speaking to India.com, NJCA convenor Shiv Gopal Mishra reiterated that the issue would be raised by National Council (staff side) after the anomalies related to allowances and pensions get settled.

“Minimum salary is an important issue. We will surely negotiate it with the Government. Once the matter pertaining to allowances and pensions gets settled, the NJCA will raise it,” Shiv Gopal Mishra said.

As per the recommendations of 7th Pay Commission, the minimum salaries of Central Government employees was hiked from Rs 7,000 to Rs 18,000. The fitment factor used by Justice AK Mathur-led 7th pay panel was 2.57. The NJCA has demanded the Government to upgrade the fitment factor to at least 3.68, in order to revise the minimum salaries to Rs 26,000.

The Confederation of Central Government employees has also demanded the Government to raise the minimum salaries to Rs 26,000, along with the regularisation of contractual employees.

The issue of minimum salary was one of the key agenda laid before NJCA before the Government in July 2016, when they had threatened a mass strike. Nearly 33 lakh Central Government employees were expected to participate in the indefinite strike which was scheduled to begin from July 11. However, after receiving assurance from Centre, the NJCA was compelled to retract their mass agitation.

No indication has been given from the Government so far regarding the upgradation of minimum salary using a fitment factor of 3.68. According to experts, Centre could adopt a middle road by using a fitment factor of anything between 2.86 to 3.15. The minimum salary, thereby, could be increased between Rs 19,000 to 22,020. However, no official confirmation regarding the same has been received.

The utmost target for NJCA, before the hike in minimum salary, is the implementation of higher allowances. Due to anomalies raised by unions in July, only the basic component of salary was raised for Central Government employees. The hike in allowances was awaited as Centre formed a committee under Finance Secretary Ashok Lavasa to review the demands raised by unions.

Source : india.com

Read More

Finmin: Employees to get higher allowances with retrospective effect 7th Pay Commission

Finmin: Employees to get higher allowances with retrospective effect 7th Pay Commission

New Delhi: A finance ministry official, speaking on condition of anonymity, today said that the Central government employees will get the higher allowances under the 7th pay commission recommendations with retrospective effect from January 1, 2016.

Responding to our reporter, the finance ministry official said the central government has to accept to implement the 'Committee on Allowances' recommendations without any hartals by the employees’ unions.
In the past, employees unions had to come on roads and go on strike to push for implementation of pay commission, but this time the government has to order the implementation of higher allowances soon as it is their right, he said.

Employees will get the benefits of the higher allowances with retrospective effect from January 2016, the official said, adding that the government is also working on formulating plan for paying arrears on this account.

The finance ministry will formulate roadmap for payment of arrears, he added.

The government in July last year had formed the 'Committee on Allowances', headed by Finance Secretary Ashok Lavasa, for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance as the pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances.

The committee was initially given four months time to submit the report to Finance Minister Arun Jaitley.
Later, the Finance Minister Arun Jaitley extended the deadline for report submission to February 22, 2017.
The ‘Committee on Allowances is yet to submit its report. The committee is now in the process of finalising its report and the government would take a decision after the report is submitted. It may be taken more time to finalise its report.

Accordingly, the National Joint Council of Action (NJCA), which is a centralised union of several central government employees unions, has told cabinet secretary that the higher allowances must be given as arrears from January 2016.

The central government employees and pensioners got theirs arrears of basic pay and pension arising from implementation of the 7th Pay Commission recommendations in one go in August salaries and pension respectively.

The hike in basic pay and pension has been made effective from January 1, 2016 but the they are still awaiting for the higher allowances.

I have met the Cabinet Secretary on March 28 and have submitted our demands. In which the NJCA have clearly mentioned that whenever there is an implementation of 7th Pay Commission the government has to pay higher allowances effective from January 2016. If the government fails to do so then we will object it in an organised manner, Shiv Gopal Mishra, Convenor, NJCA, said.

TST

Read More

7th Pay Commission: Government to implement soon on higher allowances, says unions

7th Pay Commission: Government to implement soon on higher allowances, says unions

New Delhi: Central government employees unions today said the government has promised that it will implement soon the 'higher allowances' under 7th Pay Commission recommendations, with retrospective effect from August 2016.

A top union leader told that the employee representatives have sought an early finalisation of the 'Committee on Allowances' report.

"We were promised in August, 2016 that the higher allowances (as per the 7th Pay Commission) would be given to us within four months, but we haven't got its till now," the union leader said.

Meanwhile, the 'Committee on Allowances' has sought views from different ministries on 14 allowances, a PTI report said, citing sources.

These allowances include accidental allowance, outstation detention allowance, trip allowance, and ghat allowance.

The government in July last year had formed the 'Committee on Allowances', headed by Finance Secretary Ashok Lavasa, for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance as the pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances.

The committee was initially given four months time to submit the report to Finance Minister Arun Jaitley.

Later, the Finance Minister extended the deadline for report submission to February 22, 2017.

Minister of State for Finance Arjun Ram Meghwal on March 10 had again clarified in Lok Sabha that the 'Committee on Allowances' is yet to submit its report.

Meghwal added the 'Committee on Allowances' is now in the process of finalising its report and the government would take a decision after the report is submitted.

Meghwal also explained why the 'Committee on Allowances' has taken more time to finalise its report.

"The 'Committee on Allowances' has taken more time than was initially prescribed in view of large number of demands received," he clarified.

"The committee has received a large number of demands on allowances and even now receives demands in this regards. All the demands have been diligently examined," the minister also said.

The 'Committee on Allowances' is likely to finalise its views on house rent allowance (HRA) at its next meeting, reported PTI, citing sources.

The 7th Pay Commission had recommended that HRA be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay, depending on type of cities. The Commission had also recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent, respectively when DA crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when DA crosses 100 per cent.

via 7cpc.in

Read More

7th Pay Commission: Central employees to get higher allowances from April 1, says FinMin

7th Pay Commission: Central employees to get higher allowances from April 1, says FinMin

New Delhi: Central government employees will get higher allowances according to the 7th Pay Commission recommendations from April 1, a senior finance ministry official said.

The employees will get their April salaries with higher allowances in accordance with the 7th Pay Commission recommendations, he told our reporter at the finance ministry on Monday.

Everything is decided. The Cabinet and the prime minister have to approve the Committee on Allowances report. The finance ministry has no reason to raise any question on the report of committee on allowances, he added.

He said the process to implement the higher allowances would be completed soon.

The central government approved the 7th Pay Commission scale for its employees in June, offering a highest basic pay of Rs 2.5 lakh and a minimum of Rs 18,000.

The new basic pay has been given in August 2016 with arrears, effective from January 1, 2016. The allowances, however, other than dearness allowance referred to the Committee on Allowances headed by the Finance Secretary Ashok Lavasa in July 2016, for examination as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

Accordingly, existing allowances are now paid to the employees according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

The Committee on Allowances was initially given a time of four months to submit its report to the Finance Minister Arun Jaitley.

In October last year, Ashok Lavasa was quoted by some media outlets as saying he was ready with the report.

But the government gave extension to the committee up to February 22, 2017 on the pretext of demonetisation and the government said that the cash crunch was the reason behind the delay in announcing higher allowances.

The announcement of assembly elections in five states has given another excuse for the government as it cannot announce allowances hike till the model code of conduct is in place up to March 8.

The finance ministry official said the Committee on Allowances report states the current House Rent allowance (HRA) slab, which is 30 per cent of basic pay, for metros for employees. An announcement on the same is expected soon but no hike in Transport Allowance (TPTA) for central government employees in its report and the Transport Allowance will remain the same as 6th Pay Commission recommendations.
However, the pay panel had recommended that HRA be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay for Class X (metros), Y and Z cities, respectively.

TST

Read More

7th Pay Commission: Higher allowances woes plague central govt employees

7th Pay Commission: Higher allowances woes plague central govt employees

New Delhi: Central government employees have not got their higher allowances under the 7th Pay Commission recommendations over the last seven to eight months.

A central government employees union leader, said the government has not released the higher allowances for central government employees for last seven months.

He said the higher allowances issue has affected about 48 lakh serving central government employees and 52 lakh pensioners, who could not pay their house rents, tuition fees of children, installments of home and vehicle loans and insurance premiums.

We were promised in August, 2016 that the higher allowances (as per the 7th Pay Commission) would be given to us within four months, but we haven't got its till now.

They (the government) tell us that the model code of conduct has come into effect from January 4 to March 8 for five states assemblies poll process, so they can’t announce the higher allowances. Actually they do not intend to pay the higher allowances in time. In October last year, the Finance Secretary Ashok Lavasa, who is the head of the Committee on Allowances, said, he was ready with the report to submit the Finance Minister Arun Jaitley but Jaitley didn't receive the report of allowances, the union leader told.

The union leader said even though the 7th Pay Pay Commission was implemented in August, 2016, the central government employees have not yet been given the higher allowances till date.

Earlier, the government has given higher basic pay in August 2016 with arrears, effective from January 1, 2016 to its employees on the recommendations of the 7th pay commission but the hike in allowances other than dearness allowance referred to the Committee on Allowances for examination as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

Accordingly, existing allowances are now paid to the central government employees according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

However, the Finance Minister Arun Jaitley, promised to address the issue of higher allowances after the completion of the polls of the five states.

TST

Read More

7th Pay Commission: Higher allowances announcement soon

7th Pay Commission: Higher allowances announcement soon

New Delhi: Central government employees are waiting almost seven months to receive higher allowances under the 7th Pay Commission recommendations in their paychecks. Senior Finance Ministry sources say the government is expected to make the announcement of higher allowances after five states assembly polls.
The central government employees received higher basic pay in August 2016 with arrears, effective from January 1, 2016 on the recommendations of the 7th pay commission but the hike in allowances other than dearness allowance has yet to materialize.

The 7th Pay Commission recommendations have wrapped up, in June last year, but the central government employees still waiting for payments owed them i.e higher allowances.

The delays are because the allowances other than dearness allowance referred to the ‘Committee on Allowances’ headed by the Finance Secretary Ashok Lavasa for examination as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

The Committee on Allowances was initially given a time of four months to submit its report to the Finance Minister Arun Jaitley.

In October last year, Ashok Lavasa was quoted by some media outlets as saying he was ready with the report.

However, the committee was later given an extension till February 22, 2017 to submit its report on the pretext of demonetisation and the government said that the cash crunch was the reason behind the delay in announcing higher allowances.

According to some reports, the government is likely to give its nod to the revised allowances once the Assembly elections in five states are over. The revised allowances are expected to be effective from April 1, which marks the beginning of the new financial year.

The sources said the Committee on Allowances report states the current HRA slab, which is 30 per cent of basic pay, for metros. An announcement on the same is expected soon.

However, the pay commission had recommended reducing the house rent allowance (HRA) to 24 per cent of basic pay as against the 30 per cent of basic pay employees were drawing under the Sixth Pay Commission.

TST

Read More

7th Pay Commission: Why government not to implement higher allowances?

7th Pay Commission: Why government not to implement higher allowances?

New Delhi: Despite all that has been said about the higher allowances under the 7th Pay Commission recommendations, an important issue for central government employees has now been strangely absent from the government agenda.

First, the Finance Minister Arun Jaitley had claimed it must implement after four months of the basic pay hike but it failed to come true.

More than 14 to 15 months have passed since the 7th pay commission report was submitted and seven months have elapsed since the union cabinet approved the 7th Pay Commission recommendations for salary hike of central government employees, but the they are still awaiting the higher allowances.

The government has given higher basic pay in August 2016 with arrears, effective from January 1, 2016 to its employees on the recommendations of the 7th pay commission but the hike in allowances other than dearness allowance referred to the 'Committee on Allowances' headed by the Finance Secretary Ashok Lavasa for examination as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

Accordingly, existing allowances are now paid to the central government employees according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

Finance Secretary Ashok Lavasa said in October 2016, "We are ready to submit our report, when the Finance Minister Arun Jaitley calls up."

But the government gave extension to the committee up to February 22, 2017 on the pretext of demonetisation and the government said that the cash crunch was the reason behind the delay in announcing higher allowances.

The announcement of assembly elections in five states has given an excuse for the government as it cannot announce pay hikes till the model code of conduct is in place up to March 8.

The government is using delaying tactics to save the government money to pay higher allowances without arrears from August 16.

The delay in implementation of the higher allowances has caused tremendous irritation and frustration among employees.

The Prime Minister Narendra Modi led BJP may have to face a backlash in the assembly elections in the five states, two of which is ruled by the party either directly or in alliance. Thus, not properly implementing of the 7th Pay Commission recommendations would amount to strike to blow to the BJP in polls.

TST

Read More

7th Pay Commission: Higher allowances to be paid after Budget

7th Pay Commission: Higher allowances to be paid after Budget

New Delhi: The higher allowances under 7th pay commission is set to be paid to central government employees and pensioners after the budget 2017-18.

A top official in the Finance Ministry told The Sen Times on the condition on anonymity, "Government is very pleased to pay the higher allowances to its employees after Budget."

He added that the Finance Minister Arun Jaitley had earlier expressed confidence that the currency shortage would be mitigated after December 30.

"The acute cash crunch in banks and ATMs that prevailed for a month following the demonetization move of the government has eased from January 1, as the daily withdrawal limit from ATMs has been increased from Rs 2,500 to Rs 4,500. Hence, the Finance Ministry felt it would be wiser to announce of higher allowances after Budget." the official revealed.

Currently, the central government employees are getting hike in basic pay with retrospective effect from January 2016 under the recommendations of the 7th Pay Commission but they are getting allowances according to the 6th Pay Commission recommendations.

The 7th pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances, so the government referred hike in allowances other than dearness allowance to the 'Committee on Allowances' headed by the Finance Secretary Ashok Lavasa for examination.

The 'Committee on Allowances' has finalized the report on the allowances in October, however the government gave extension the committee till February 22, 2017 to submit its report.

TST

Read More

Higher Allowances: Central government employees have no option but to wait for cash flow to ease

Higher Allowances: Central government employees have no option but to wait for cash flow to ease

New Delhi: The central government wants to announce higher allowances under 7th Pay Commission award for its 48 lakh employees and 52 lakh pensioners, after taking the steps to ease the cash flow, that has been a major problem ever since demonetisation was announced for higher allowances announcement, official sources said.

The hike in basic pay without allowances is not helpful for maintaining central government employees’ living standard, Finance Ministry sources told on Friday.

They had also said the allowances of government employees besides basic pay should increase which would give them some financial comfort, a step they had hoped might be taken after next budget, when the cash crunch would ease.

They added that the decision on higher allowances to push since getting of payments to made ease and without facing cash crunch. Hence, the Finance Ministry felt it would be wiser to announce of higher allowances when the cash flow to ease.

In the current financial year, the government has given higher basic pay with arrears, effective from January 1, 2016 to its employees on the recommendations of the 7th pay commission but the hike in allowances other than dearness allowance referred to the 'Committee on Allowances'.

It compelled the the central government employees to get the allowances according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

"The committee on Allowances headed by the Finance Secretary Ashok Lavasa has finalized the report on the allowances in October but the government don’t want to announce it now, so the government gave extension the committee till February 22, 2017 to submit the report on higher allowances for getting normalized the cash crunch position, " the Finance Ministry sources said.

They also added that Finance Minister Arun Jaitley may announce the higher allowances in his budget speech for 2017-18.

TST

Read More

7th Pay Commission: Finance Ministry gets extension of 2 months, may delay higher allowances notification

7th Pay Commission: Finance Ministry gets extension of 2 months, may delay higher allowances notification

New Delhi, Dec 7: The notification for the implementation of higher allowance, under the 7th Pay Commission recommendations, is likely to be issued after January 2017. The Finance Ministry has got extension of two months to issue the higher allowances notification under 7th Pay Commission recommendations. It means the higher allowance notification, under the 7th Pay Commission recommendations, may get delayed till January next year. The government intends to accept the report of 'Committee on Allowances’ after December 30, deadline for depositing demonetised notes.
The October-November month is the scheduled for issuing notification, but the Finance Ministry has got extension of two months because of the cash shortage following demonetisation drive. The government doesn’t want to increase the burden of banks that has been witnessing cash crunch due to demonetisation of Rs 500 and Rs 1000 notes. The government hopes that situation will return to normal after December 30 and it will be able to pay higher allowances to its 4.8 million employees as per the recommendations of the 7th Pay Commission.

“The October-November month is the scheduled for issuing notification for the Finance Ministry, but the time was extended by 2 months because the cash crunch on account of demonetisation, which is taking time to get normality,” a Finance Ministry official was quoted as saying by Sen Times.

“Therefor, unless the banks can begin to function with a modicum of efficiency, the government will not issue notification on higher allowances to save demonetisation chaos,” he added.

Sources in the Finance Ministry said the government is likely to issue higher allowances notification under the 7th Pay Commission recommendations from January next year, after the the cash crunch will ease. The central government employees have been waiting for fatter allowance since July when the notification for the implementation of the 7th Pay Commission recommendations was issued.
Earlier we reported that the government is planning to pay higher allowances under the 7th Pay Commission from January, 2017.The ‘Committee on Allowances’, headed by Finance Secretary Ashok Lavasa, on fatter allowances under the 7th Pay Commission recommendations is ready with its report. However the massive cash crunch post demonetisation drive has compelled the Finance Ministry to keep in abeyance the enhanced allowances till things normalize. Allowances are now being paid to the central government employees according to the 6th Pay Commission recommendations.

Source : www.india.com

Read More

7th Pay Commission: Salary hike to central government employees affects economic growth

7th Pay Commission: Salary hike to central government employees affects economic growth

New Delhi, Dec 8: Prime Minister Narendra Modi led government on July 29 announced to implement the 7th Pay Commission’s recommendations on salary hike of central government employees. The announcement of implementation of the 7th Pay Commission recommendations made impact of country’s economic growth, said Reserve Bank of India (RBI). The central bank mentioned the 7th Pay Commission in the Monetary Policy Committee (MPC) meeting statement announced on Wednesday that lowered the country’s growth forecast for 2016-17.

The RBI’s Monetary Policy Committee (MPC), during its second bi-monthly monetary policy review - the fifth of the fiscal - lowered the country’s growth forecast for 2016-17 to 7.1 per cent from 7.6 per cent. In its statement, the MPC also revealed the impact of the 7th Pay Commission on the GDP.
“Incorporating the expected loss of growth momentum in Q3 and waning effects in Q4 alongside the boost to consumption demand from higher agricultural output and the implementation of the 7th Central Pay Commission award, gross value added (GVA) growth for 2016-17 is revised down from 7.6 per cent to 7.1 per cent, with evenly balanced risks,” the MPC said in its monetary policy statement.

As estimated by the 7th Pay Commission, the additional financial impact on account of implementation of all its recommendations in 2016-17 will be Rs. 1,02,100 crore. There will be an additional implication of Rs. 12,133 crore on account of payments of arrears of pay and pension for two months of 2015-16. These figures are significant.

According to the 7th Pay Commission notification, central government employees will get 14.27 per cent hike in basic pay at junior levels, which is the lowest in 70 years. It had proposed 138.71 percent hike in HRA and 49.79 percent for other allowances. The government is yet to take final call on raising allowances. If the government decides to implement the recommendations of the 7th Pay Commission on allowances, there is a risk of inflation going up.

“The fuller effects of the house rent allowances under the 7th CPC award are yet to be assessed, pending implementation, and have not been reckoned in this baseline inflation path,” the MPC statement of Wednesday said

Source: www.india.com

Read More

7th Pay Commission - Govt Still thinking will it be feasible - about over higher Allowances

7th Pay Commission - Govt Still thinking will it be feasible - about over higher Allowances

The Finance Ministry official involved with the process of higher allowances on condition of anonymity, told that the Govt is facing the classic dilemma on the subject of issuing of notification of higher allowances under 7th pay commission recommendations.

“The October-November month is the scheduled for issuing notification for the Finance Ministry, but the time was extended by 2 months because the cash crunch on account of demonetisation, which is taking time to get normality.

“The Finance Ministry has got 2 months extension to issue the higher allowances notification under 7th Pay Commission recommendations”, a Finance Ministry official said on condition of anonymity.

Therefor,unless the banks can begin to function with a modicum of efficiency, the government will not issue notification on higher allowances to save demonetisation chaos,” the sources added.


The sources further added “the issue of increased financial activities after demonetisation compels the govt to keep in abeyance to issue higher allowances notification for getting normalized the position and it is likely to issue from January next, after the the cash crunch will ease. (‘Hopefully’).

As the demonetisation drive today completes 30 days, cash situation continues to stay critical in the country as evident by the unending queues outside banks and a few operational ATMs.

“The government dilemma in relation to issuing higher allowances notification will make to force central government employees to stand in long queues,” the official said. “That is the dilemma, the government is trying to work through.”

“The committee on Allowances has finalized the proposal on the allowances but the government is not interested to do it now,” an official said. “The government will decide to review all situation in respect of cash crunch, the Finance Minister Arun Jaitley is looking at all situations to normalize cash crunch, only then he will receive report on higher allowances.” sources added.

However, the committee on allowances head by Finance Secretary Ashok Lavasa said in October, “We are ready to submit our report, when the Finance Minister Arun Jaitley calls up.”

Read More