The government is most likely to approve the report of the ‘Committee on Allowances’ on higher allowance under the 7th Pay Commission recommendations. About 47 lakh Central government employees and 53 lakh pensioners will get higher allowances according to the 7th Pay Commission recommendations from April 1. The government will soon complete the process to release higher allowance under the 7th Pay Commission recommendations.
A senior Finance Ministry official, while speaking to the Sen Times, said the central government employees will start receiving higher allowance according to 7th Pay Commission recommendations from April 1. “The employees will get their April salaries with higher allowances in accordance with the 7th Pay Commission recommendations,” he said, adding that process to implement the higher allowances would be completed ‘soon’.
The Finance Ministry official also said the government has approved the report submitted by the ‘Committee on Allowances’. “Everything is decided. The Cabinet and the Prime Minister have to approve the Committee on Allowances’ report. The Finance Ministry has no reason to raise any question on the report of committee on allowances,” the official was quoted as saying.
The central government approved the 7th Pay Commission recommendations for its employees in June, offering a highest basic pay of Rs 2.5 lakh and a minimum of Rs 18,000. The revised basic pay has been given in August 2016 with arrears, effective from January 1, 2016. But they have been waiting for higher allowances under the 7th Pay Commission since July last year.
The government had referred hike in allowances to the ‘Committee on Allowances’. The Committee on Allowances, headed by Finance Secretary Ashok Lavasa, recently submitted its report of higher allowances to the Finance Minister Arun Jaitley. The ‘Committee on Allowances’ suggested no hike in the transport allowance and recommended to keep HRA to 30 per cent of the basic pay as against the 24 per cent recommended by the 7th Pay Commission. The major point of grievance among central government employees was the reduction in Housing Rent Allowance (HRA).
Besides higher allowances, central government employees have been demanding government to provide arrears on the allowances as well. Since the date of implementation of 7th Pay Commission was fixed as January 1, 2016, employees have demanded the release of arrears on allowances too.