Shiva Gopal Mishra
Secretary

Ph: 23382286
National Council (Staff Side)
Joint Consultative Machinery for Central government Employees
13-C, Ferozshah Road, New Delhi – 110001
E Mail : nc.jcm.np@ gmail .com

No.NC-JCM-2016(Allowances)

Dated: April 7, 2017

All Constituents of NC/JCM(Staff Side),

Dear Comrades!
Sub: Conclusive meeting of the Committee on Allowances

As you are aware, conclusive meeting of the Committee on Allowances was held yesterday, i.e. on 6th April, 2017. We hope that, report of the said committee will be submitted to the Cabinet within a week’s time.

Comradely yours,
sd/-
(Shiva Gopal Mishra)

Source: http://ncjcmstaffside.com/

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 “Meeting of Committee on Allowances took place on 28th March, 2017, discussion on Allowances remained inconclusive. Issue of House Rent Allowance didn’t come up during meeting.”

No.AIRF/24(C)

Dated: March 28, 2017

The General Secretaries,
All Affiliated Unions,
Dear Comrades!

Sub: Meeting of Committee on Allowances held today remained inconclusive

Meeting of Committee on Allowances took place on 28th March, 2017, discussion on Allowances remained inconclusive. Issue of House Rent Allowance didn’t come up during meeting.

I met Cabinet Secretary/GOI & urged him for early resolution of pending demands of Railwaymen that includes NPS, early disbursal of Allowances of 7th Pay Commission, Increase in Minimum wages and fitment formula. Issue of MACP was also discussed and removal of the provision of benchmark ‘Very Good’ for MACP, which has been recommended from ‘Good’ to ‘Very Good’ by the 7th Pay Commission, has also been demanded. Though Cabinet Secretary has given positive assurance on our demands yet we need our rank and file to be prepared for persistent struggle.

With Good Wishes!

Yours faithfully,
sd/-
(Shiva Gopal Mishra)
General Secretary

Source: AIRF

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Latest news on submission of 7th CPC Allowance Committee Report

“Today in Parliament, Minister of State for Finance Shri Santhosh Kumar Gangwar said in a written reply to a question regarding the submission of Allowance Committee Report. He said that the Allowance Committee is now in the process of finalizing its Report. Decisions on implementing the Report will be taken after the Report is submitted by the Committee.”

Detailed Questions and Answers:

QUESTIONS:
(a) Whether Government has formed a Committee for taking decision about the allowances to the Central Government employees and removal of anomalies in their pay scales announced by the Seventh Pay Commission;

(b) if so, whether the Committee has submitted its report;

(c) if so, the main features thereof and if not, the reasons for delay in submission of report; and

(d) the time by which recommendations of Seventh Pay Commission regarding the allowances are proposed to be implemented?

ANSWERS:
(a) to (d): The Committee on allowances has been constituted vide order dated 22.07.2016 to examine and make recommendations as to whether any changes in the recommendations of the 7th CPC relating to allowances are warranted and if so, in what form. A separate anomaly committee at National Level has also been set up, vide O.M. dated 09.09.2016, to settle the anomalies arising out of the implementation of the 7th CPC recommendations.

The National Anomaly Committee has made recommendations on the calculation methodology of the Disability Pension for Defence forces personnel. The Committee on allowances has received a large number of demands on allowances and even now receiving such demands. All the demands have been diligently examined. The Committee has already held 13 meeting so far and interacted with the representatives of Central Nodal Ministries, National Council (Staff Side), Joint Consultative Machinery (JCM) and officers and representatives of employee associations of Ministry of Health and Family Welfare, Home Affairs, Railways, Defence and Department of Posts. The Committee is now in the process of finalizing its Report. Decisions on implementing the Report will be taken after the Report is submitted by the Committee.

Authority: Rajya Sabha

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7th CPC Allowance Committee Report Submitted to the Government or not?

Was the 7th CPC Allowance Committee Report submitted to the government as early as February 22?

A high-level committee, under the chairmanship of Finance Secretary Ashok Lavasa was constituted by the Central Government to review the Seventh Pay Commission’s recommendations regarding the allowances being given to the Central Government employees. According to information, the committee had already submitted its report on February 22.

Irrespective of who possesses the report now – the committee or the government – what is more intriguing is the recommendations that it contains.

One could see that the 7th Pay Commission suggested either rationalization or simplification at many places. An example is the Pay Matrix Table, which has now brought the entire Pay Structure of more than 35 lakh employees under one Table. Although there are some anomalies, the system has dramatically simplified the process of annual increment calculation and also pay fixation on Promotion or MACP.

At present 196 different kinds of allowances are being given to the Central Government employees. Some modifications have been recommended in these too as part of the rationalization and simplification drive. The Seventh Pay Commission has recommended the abolition of 52 allowances. And another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances.

The Commission said that the entire range of allowances is administered in broadly four ways. Fully DA indexed Allowances, Partially or Semi DA indexed Allowances, No DA indexation Allowances and Percentage based Allowances. House Rent Allowance is being under the category of Percentage based Allowances. The Commission also said that the compensation towards the housing needs of Central Government employees is covered in many ways. The Commission finally suggested that the percentage based allowances by a factor of 0.8, the Commission recommends that HRA should be rationalized to 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.

The big irritation, or rather disappointment to the Central Government employees was the recommendation to reduce the percentage of House Rent Allowance (HRA).

All trade unions have expressed their harsh opposition to the proposed cuts in HRA. The Central Government employees’ Federations also expressed their disappointment through various protest. Finally the Central Government accepted to constitute a high level committee to examine the recommendations of 7th Pay Commission regarding Allowances.

Now, sources claim that the committee has already submitted its report to the government.

The government can announce its final decision on the recommendations of the committee any day. But, many believe that there could be a delay in the announcements due to the state elections that are being held in various parts of the country and the election commission’s guidelines that are being enforced now.

Unconfirmed reports say that the committee has recommended the percentage rates of HRA as per 6th CPC and changes in the method of calculating Transport Allowances also.

The biggest mystery however is – will these recommendations be given retrospective effect and will arrears be given?

Three dates are currently being suggested – January 1, 2016; August 1, 2016; and April 1, 2017.

Only the Central Government has all the answers right now.

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