Published On: Fri, Oct 21st, 2016

7th Pay Commission: Committee on allowances ready to submit report?

New Delhi: There are indications that the committee on allowances, which is looking into allowances, which was recommended by 7th Pay Commission is now ready for onward submission its report to the Finance Minister Arun Jaitley.

Arun Jaitley

Finance Secretary is waiting for the Finance Minister Arun Jaitley’s call for submission of report on allowances.

The committee headed by Finance Secretary Ashok Lavasa met up with the deadline of four months given to it by the cabinet to submit the report. It’s however currently are waiting for Finance Minister’s call about submission its report.

“The committee sat several times and its has done the needful. The report is ready and the Finance Secretary is waiting for the Finance Minister Arun Jaitley’s call for submission of report,” a source in the Finance Ministry disclosed.

Union Finance Secretary Ashok Lavasa also said beginning of this month, “A committee headed by me is currently examining the Pay Commission’s recommendations on allowances and it will submit its report soon.”

Last year, the pay commission headed by Justice A K Mathur had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances. so, there was resentment among employees over suggestions to scrap some allowances.

Accordingly, government set up a committee on allowances headed by Finance Secretary in June this year to examine the 7th Pay Commission recommendations on allowances, other than dearness allowance.

Until acceptance of new allowances, existing allowances are to be paid according to the existing rates under the existing pay structure, says an earlier official statement issued by the finance ministry.

The source in the Finance Ministry also said that the quantum of allowances may not vary from those proposed by the 7th Pay Commission.

“The committee on allowances sticks with the 7th Pay Commission’s recommendations on allowances,” he confirmed.

“The cabinet will also stick with the 7th Pay Commission recommendations on allowances like advances,” the source added.

“The higher allowances will be implemented with retrospective effect from August 2016 but the central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016,” the source also said.

“Moreover, arrears for higher allowances will be paid from August,” the source assured.

The recommendations of the 7th Pay Commission are applicable to 48 lakh central government employees and 52 lakh pensioners.


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