New allowances likely before Diwali

The notification for the implementation of the improved allowances under 7th Pay Commission recommendations is likely to be issued within two weeks by Prime Minister Narendra Modi led government. Once the notification issued, the revised allowance recommended by the 7th Pay Commission will be given to central government employees and pensioners from October or November on the eve of Diwali. The special committee on allowances, under 7th Pay Commission recommendations, headed by Finance Secretary Ashok Lavasa, will soon submit its report to the Finance Ministry. It is expected that central government employees and pensioners will start getting higher allowances from their October or November salaries or pensions.

The 7th pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances. However there was resentment among employees over suggestions to scrap some allowances. The government while issuing the notification for the implementation of the 7th Pay Commission had announced to set up a special committee to examine the recommendations on allowances. The special committee was ready with its report, but the Finance Minister Arun Jaitley couldn’t get enough time to discuss the matter, which delayed the matter further.

The government is now preparing to issue notification for the implementation of the fatter allowances under 7th Pay Commission recommendations before end of the October. “Once issues by the Ministry, the notification will be given higher allowances benefits to 4.8 million central government employees and 5.2 million pensioners,” said a finance ministry official. The special committee on allowances will now submit its report soon, after which notification will be issued.

“Finance Minister Arun Jaitley returned home now from a working visit to Canada and US and the committee on allowances is likely to submit its report to Finance Minister within two-three days,” the official said. The government had earlier announced that until the special committee submits ints report on higher allowances, allowances are to be paid according to the existing rates under the existing pay structure. According to reports, while the special committee is likely to stick with the 7th Pay Commission’s recommendations on allowances, Finance Minister Arun Jaitley will propose a hike of 2 per cent in the dearness allowance (DA).