7th Pay Commission: Higher Allowances From January

New Delhi: The central government employees to get their higher allowances under the 7th Pay Commission recommendations from January next, the top Finance Ministry sources today told The Sen Times.

As people continue to suffer after demonetisation from November 9 on account of cash crunch, the Finance Minister Arun Jaitley compels to keep in abeyance the higher allowances till things normalize and it is likely to implement from January next.

When asked whether the arrears would be paid too, they said, “Higher allowances will be paid 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 central government employees unions wanted that House Rent Allowance (HRA) be fixed at range 10, 20 and 30 per cent of the basic linked to the classification of the town of posting when the Pay commission recommended 24%, 16% and 8% respectively of new pay matrix, the union also asked to enhance children education allowance of Rs 3,000 and hostel subsidy of Rs 10,000 with tax exempt.” the sources said.

The union also demanded inclusion of post-graduate and professional courses in children education allowance and to hike the ‘Fixed Medical Allowance’ to Rs 2,000 with Dearness Allowance Indexation,” they added.

The unions put their demands before the Committee on Allowances headed by Finance Secretary Ashok Lavasa, which met last Thursday.

The Union Cabinet cleared the recommendations of 7th Pay Commission in respect of the hike in basic pay and pension on June 29 but decision on its suggestions relating to allowances has been referred to the Committee on allowances as the pay commission 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.

Fearing a jump in footfalls to deposit or withdraw cash following the demonetisation of Rs 500 and 1,000 banknotes, the Finance Ministry is likely to scale down the the higher allowances proposal.

“As people continue to suffer after demonetisation from November 9 on account of cash crunch, the Finance Minister Arun Jaitley compels to keep in abeyance the higher allowances till things normalize and it is likely to implement from January next,” Finance Ministry sources revealed.

Until acceptance of higher allowances, the allowances are now paid according to the 6th Pay Commission recommendations.

TST

7th Pay Commission: Central govt employees to get higher allowances from January 2017, says report

The proposals of the 7th Central Pay Commission cover about 47 lakh Central government employees and about 53 lakh pensioners.

A woman displaying new Rs 500 denomination currency notes (representational image). Central government employees are set to get higher allowances as recommended by the 7th Central Pay Commission (CPC) in January 2017 with retrospective effect from August 2016, according to a report.IANS

The latest buzz about the 7th Central Pay Commission (CPC) recommendations is that the NDA government is likely to pay higher allowances from January 2017 as proposed by the pay panel. The Modi government had referred to the hike in allowances to a select committee while accepting the hike in salary component in June last year.

The Sen Times, an online newspaper for bureaucrats, quoted finance ministry sources as saying that the hike will be applicable with retrospective effect from August 2016.

The publication had said a few days that a decision on allowances was being kept in "abeyance" by the government in view of the situation arising out of demonetisation and the consequences thereof. ""Higher allowances will be paid 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 Sen Times said, quoting finmin sources.

The CPC examined 196 allowances and gave its recommendations on abolishing or raising some of them while recommending others to be subsumed with other perks.

The recommendations of the 7th CPC cover 47 lakh Central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

It had proposed 138.71 percent hike in HRA and 49.79 percent for other allowances while submitting its voluminous report last November.

The additional amount on account of hike in HRA and other allowances is about Rs 29,300 crore (Rs 17,200 crore + Rs 12,100 crore) during the current fiscal, as estimated by the 7th CPC.

Calculation of financial implications by the 7th CPC

Withholding Annual Increments of Non-performers after 20 Years

Withholding Annual Increments of Non-performers after 20 Years

Press Information Bureau 

Government of India

Ministry of Personnel, Public Grievances & Pensions

23-November-2016 17:04 IST 

Pay Hike

     The 7th Central Pay Commission in its Report contained in Para 5.1.46 titled 'Withholding Annual Increments of Non-performers after 20 Years' has inter-alia recommended for withholding of annual increments in the case of those employees who are not able to meet the benchmark either for Modified Assured Career Progression (MACP) or a regular promotion within the first 20 years of their service. The Government of India vide Resolution No.1-2/2016-IC dated 25.7.2016 has accepted this recommendation. 

This was stated by the the Union Minister of State (Independent Charge) Development of North-Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, Dr Jitendra Singh in written reply to a question by Shri Ram Charitra Nishad in the Lok Sabha today.

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