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Wednesday, November 30, 2016
Central govt employees to get higher allowances from January 2017
In a latest development around 7th Pay Commission, the government will start giving higher allowances under the 7th Pay Commission recommendations from January, 2017.
According to sources in Finance Ministry, central government employees will get their higher allowances under 7th Pay Commission recommendations from January next. The cash crunch, following the demonetisation drive of Prime Minister Narendra Modi, compelled central government to keep in abeyance the higher allowances till things normalize.
The government will pay higher allowance, under 7th Pay Commission recommendations, with retrospective effect from August 2016, however central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016. There is official confirmation whether the arrears would be paid too. The development comes days after central government employees unions met Committee on Allowances headed by Finance Secretary Ashok.
The central government employees have been waiting for fatter allowance since July when the government issued the notification for the implementation of the 7th Pay Commission recommendations. The 7th pay commission recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances, which triggered a resentment among central government employees. Union Finance Minister Arun Jaitley then formed ‘Committee on Allowances’ for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance.
“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 per cent, 16 per cent and 8 per cent 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.” a sources was quoted as saying by TheSen Times. “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.
Sources also said that the Finance Ministry may scale down the higher allowances proposal due to ongoing cash chaos in the country. Until acceptance of higher allowances, under 7th Pay Commission, the allowances are now paid according to the 6th Pay Commission recommendations.