New Delhi: “Fatter allowances are likely to be implemented with effect from August 1, 2016,” sources in Finance Ministry familiar with the matter said today morning asking not be named.
“The arrears of hike in basic pay is usually only paid. No arrears for allowances is paid, as per usual practice, the allowances is paid from the date of starting payment of salaries on the recommendation of the new pay commission, the 7th Pay Commission recommendations has been started from August. Hence the government will implement higher allowance from August 2016 and the government is considering this angle,” the sources said.
The government has paid its employees arrears arising from implementation of the 7th Pay Commission recommendations in one go in August salaries. The basic pay hike has been made effective from January 1, 2016.
The new allowances for the central government employees has not been paid as 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 because the pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances.
“The two meetings of the committee were held on August 4 and September 1 and the committee has finalised the report. The committee on allowances is ready to submit its report even two months in advance, when the Finance Minister Arun Jaitley calls up after his foreign visits, the committee will submit its report,” the sources assured.
“The FM is likely to approve the proposal of committee on allowances which will stick to the 7th Pay Commission’s recommendations on allowances like glue and the higher allowances will be implemented with prospective effect from August 2016,” the sources confirmed.
However, the central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016.
The hike in allowances is likely to happen by October 31, the sources told The Sen Times.
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