New Delhi: 7th Pay Commission allowances for all central government
employees under the new pay matrix will be implemented from October 1,
2016, a top Finance Ministry’s official told the Sen Times on Friday.
“This development comes days after the second meeting of the
committee on allowances which was held on September 1, following which
the employees will now get the new allowances with their October
salaries” he said.
He added the committee is likely to submit its report to the Finance Minister Arun Jaitley within a week. After assessment in Finance Ministry, this would be submitted to the Cabinet.
The central government employees union leader Shiv Gopal Mishra also said after the meeting, “Let us believe that, after the meeting, report of the said committee would be sent to the Government of India for its acceptance.”
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 a Committee headed by Finance Secretary.
Accordingly, on July 22, the government constituted a committee comprising Finance Secretary as Chairman and Secretaries of Home Affairs, Defence, Health and Family Welfare, Personnel & Training, Posts and Chairman, Railway Board as Members to examine the 7th Pay Commission recommendations on allowances, other than dearness allowance.
“The committee has been asked to submit its report within four months. Its two meetings were already held on August 4 and September 1 respectively and the committee is likely submit its report in this month,” confirmed the official.
The pay commission headed by Justice A K Mathur had recommended abolition of 51 allowances and subsuming 37 others after examining 196 allowances.
“Allowances contribute 63 percent in the pay hike recommendation. The allowances which the commission proposed is very substantial. So, the central government employees now get a little hike in pay but the finance ministry will soon move the Cabinet with changes in allowances providing for full compensation to the central government employees after getting the report from the committee on allowances,” said the official.
It is noted that no arrears for allowances will be paid, as per usual practice, the allowances would be paid from the date of implementation. However, the central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016.
The recommendations of the 7th Pay Commission cover 48 lakh Central government employees and 52 lakh pensioners..
Committee on allowances is likely to submit its report to the Finance Minister Arun Jaitley within a week.
He added the committee is likely to submit its report to the Finance Minister Arun Jaitley within a week. After assessment in Finance Ministry, this would be submitted to the Cabinet.
The central government employees union leader Shiv Gopal Mishra also said after the meeting, “Let us believe that, after the meeting, report of the said committee would be sent to the Government of India for its acceptance.”
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 a Committee headed by Finance Secretary.
Accordingly, on July 22, the government constituted a committee comprising Finance Secretary as Chairman and Secretaries of Home Affairs, Defence, Health and Family Welfare, Personnel & Training, Posts and Chairman, Railway Board as Members to examine the 7th Pay Commission recommendations on allowances, other than dearness allowance.
“The committee has been asked to submit its report within four months. Its two meetings were already held on August 4 and September 1 respectively and the committee is likely submit its report in this month,” confirmed the official.
The pay commission headed by Justice A K Mathur had recommended abolition of 51 allowances and subsuming 37 others after examining 196 allowances.
“Allowances contribute 63 percent in the pay hike recommendation. The allowances which the commission proposed is very substantial. So, the central government employees now get a little hike in pay but the finance ministry will soon move the Cabinet with changes in allowances providing for full compensation to the central government employees after getting the report from the committee on allowances,” said the official.
It is noted that no arrears for allowances will be paid, as per usual practice, the allowances would be paid from the date of implementation. However, the central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016.
The recommendations of the 7th Pay Commission cover 48 lakh Central government employees and 52 lakh pensioners..
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