New Delhi: All the central government employees will get reason to smile soon. Reportedly, much awaited fatter allowances report under the 7th Pay Commission recommendations will be submitted to Finance Ministry this week itself. If sources in Finance Ministry are to be believed then the report will be surely submitted to Finance Minister Arun Jaitley in this week.
The sources revealed that the quantum of allowances may not vary from those recommended by the 7th Pay Commission. The committee on allowances sticks with the 7th Pay Commission’s recommendations on allowances.
The fatter allowances is scheduled to be implemented from August 2016 with the hike in basic pay of the 7th Pay Commission recommendations. But 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.
Hence, the government had set up a ‘Committee on Allowances’ under the chairmanship Finance Secretary on July 22 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.
However, the committee is ready to submit its report even two months in advance as Finance Secretary Ashok Lavasa recently said, “A committee headed by me is currently examining the Pay Commission’s recommendations on allowances and it will submit its report soon.”
As part of the exercise, the committee held discussions with various stakeholders, including organisations, federations, groups representing civil employees as well as Defence services, sources added.
“The cabinet is likely to approve the proposal of committee on allowances and 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 sources confirmed.
“Moreover, arrears for higher allowances will be paid from August,” the source assured.
The 4.8 million central government employees and 5.2 million 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.
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