Government gears up to notify 7th pay commission allowances hike

Government gears up to notify 7th pay commission allowances hike

New Delhi:The government is gearing up to notify the 7th pay commission allowances shortly, after it’s got cabinet nod.

The government has to notify of the new allowances for central government employees this week, allowances, the compensatory perks for all employees and the employees will get increased allowances from this month, the finance ministry officials today told.

The government on Wednesday increased allowances, which comes into effect from July 1, 2017, is based on the recommendations of the Committee on Allowances.

While the government hiked the salaries for the central government employees from August 2016. They also got arrears of basic pay from January 2016 on the recommendations of the 7th Pay Commission.

“The Department of Expenditure will issue notifications for implementation of 7th Pay Commission allowances this week, after which it will be put on the department site for downloads,” the officials told.

The officials added before the issuance of the notification it would not be appropriate to say anything on the matter. They also confirmed “the notification will address all apprehensions.”

“The detailed notifications will be issued which will tell what are the benefits given to employees. It is right now premature to comment on what is in it and what are the cabinet full nods,” they also said.

PRESS NOTE

Union Finance Minister Arun Jaitley told media on Wednesday that the Cabinet approved HRA at the rate 24, 16 and 8 per cent for X,Y and Z cities respectively. HRA will not be less than Rs. 5,400, Rs. 3,600 and Rs. 1,800, which is calculated at 30, 20 and 10 per cent of minimum pay of Rs. 18,000.”

“Fixed medical allowance for pensioners is increased from Rs.500 per month to Rs.1000 per month. Constant attendance allowance on 100 percent disablement is increased from Rs.4500 per month to Rs. 6750 per month,” Jaitley added.

In June 2016, when the Cabinet approved pay and pension hike for central government employees and pensioners under the 7th Pay Commission recommendations, The decision on higher allowances was postponed by the Cabinet on that time because the 7th Pay Commission recommended abolition of 52 allowances and subsuming of another 36 allowances into larger existing ones out of total 196 allowances

The 7th Pay Commission also recommended slashing the HRA from 30, 20 and 10 per cent to 24, 16 and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.

The Employee unions were opposed it, which government complied with formation of the Committee on Allowances headed by Finance Secretary Ashok Lavasa in June 2016 to review the allowances.

In April, the Committee on Allowances had examined the 7th Pay Commission’s recommendations on allowances, and submitted its report to Finance Minister Arun Jaitley.

The report was then taken up by the Department of Expenditure for examination, following which it was passed on to the Empowered Committee of Secretaries headed by the Cabinet Secretary P K Sinha set up to screen the 7th Pay Commission recommendations and to firm up the proposal for approval of the Cabinet.

The Empowered Committee of Secretaries prepared the Cabinet note on allowances, which was completed on June 1.

The Empowered Committee of Secretaries dittoed the report of the committee on allowances.

The committee on allowances also stuck with the 7th Pay Commission’s recommendations on allowances, accordingly, the cabinet accepted it.