New Delhi: : A top most central government employees’ union leader on Friday said central government had been the villain in the implementation of the 7th Pay Commission recommendations in respect of higher allowances and employees had every right to demand arrears on higher allowances.

“The government had delayed in the implementation of the higher allowances. It had failed to handle the financial situation of the employees, according to arrears on higher allowances should be paid,” the leader said.

“Earlier the Finance Minister Arun Jaitley had claimed it must implement after four months of the basic pay hike but it failed to come true,” the leader added.

More than 18 to 19 months had passed since the 7th pay commission report was submitted and twelve months had elapsed since the union cabinet approved the 7th Pay Commission recommendations for salary hike of central government employees, but the Cabinet approved the recommendations on allowances on June 28 this year, which are being paid to the employees from July, 2017 without arrears.

The government has given higher basic pay in August 2016 with arrears, effective from January 1, 2016 to its employees on the recommendations of the 7th pay commission but the hike in allowances other than dearness allowance had referred to the ‘Committee on Allowances’ headed by the Finance Secretary Ashok Lavasa for examination as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

Finance Secretary Ashok Lavasa had said in October 2016, “We are ready to submit our report, when the Finance Minister Arun Jaitley calls up.”

But the government had gave extension to the committee up to February 22, 2017 on the pretext of demonetisation and the government said that the cash crunch was the reason behind the delay in announcing higher allowances.

The announcement of assembly elections in five states had also given an excuse for the government as it couldn’t announce pay hikes till the model code of conduct is in place up to March 8.

The government was using delaying tactics to save the government money to pay higher allowances without arrears from August 16.

The delayed implementation of allowances have saved the government nearly Rs 40,000 crore.

The delay in the implementation of allowances is chiefly because of the financial gains of the government, while financial condition of the government is very sound.

The delay in implementation of the higher allowances has caused tremendous irritation and frustration among employees and they also expressed their resentment over the the announcement of non payment of arrears on allowances.

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New Delhi: The Union government has dropped higher allowances proposal under the 7th Pay Commission from its today’s cabinet meeting agenda at the last minute, the Finance Ministry officials involved with the process of higher allowances told The Sen Times on condition of anonymity.

The officials said recommendation of the Empowered Committee of Secretaries (E-CoS) headed by Cabinet Secretary P K Sinha on higher allowances, was due to come before the Union cabinet at its meeting today for formal approval.

However, the item was dropped from the agenda at the last minute, as Finance Minister Arun Jaitley is on an official visit to South Korea, they added.

However, they said that the Cabinet may decide on 7th pay commission allowances this month.

In June 2016, the Cabinet approved 14% pay and pension hike for central government employees and pensioners under the 7th Pay Commission recommendations with effect from January 1, 2016.

The decision on higher allowances was postponed by the Cabinet on that time because the 7th Pay Commission wanted abolition of 52 allowances and subsuming of another 36 allowances into larger existing ones out of total 196 allowances.

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.

The Committee on Allowances submitted its report to Finance Minister Arun Jaitley on April 27.

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 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 was in the process of preparing the Cabinet note on higher allowances, which was completed on June 1.

The central government employees are now getting no new allowances (except Dearness Allowance) with their new pay structure till the cabinet nod.

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New Delhi: Suspense over when would be higher allowances announced even one month 11 days passed after the ‘Committee on Allowances’ submitted its review report to Finance Minister Arun Jaitey.

The higher allowances were not part of the agenda for the union cabinet meeting yesterday because Finance Minister Arun Jaitley embarked on a four-day visit to Paris on Tuesday.

The higher allowances including HRA under 7th Pay Commission recommendations is now expected to be placed in the next cabinet meeting after Jaitley will return to India on June 10 from Paris.

The 7th Pay Commission proposals on salary and pension had already been approved in June 2016 with effect from January 1, 2016 but central government employees are now drawing allowances at old rates.

The 7th Pay Commission had recommended that of a total of 196 allowances, 52 be abolished altogether and 36 be abolished as separate identities by subsuming them in another allowance.

Employee unions were opposed it that governments complied with formation of the Committee on Allowances headed by Finance Secretary Ashok Lavasa to review it.

The Committee on Allowances submitted its review report this year on April 27.

The report was then taken up by the Department of Expenditure for examination, following which it was passed on to Empowered Committee of Secretaries (E-CoS) headed by 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 Media reports said the Empowered Committee of Secretaries prepared the report on higher allowances for cabinet nod and the E-CoS dittoed the report of the committee on allowances but the report of the committee on allowances hasn’t made public.

The committee on allowances also stuck with the 7th Pay Commission’s recommendations on allowances, a Finance Ministry official involved with the process told The Sen Times on condition of anonymity.

The 7th Pay Commission also recommended slashing the House Rent Allowance (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 central government employees unions demanded HRA at the rate of 30 per cent, 20 per cent and 10 percent of basic pay instead of 24, 16 and 8 percent.

They also demanded the government to implement higher allowances without further delay with effect from January 1, 2016.

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New Delhi: Finance Ministry sources today said on condition of anonymity, there is no scope to change in higher allowances, which were recommended by the 7th Pay Commission.

The sources came up with the remark while talking to us about hiking of allowances of all central government employees and officials by the Empowered Committee of Secretaries (E-CoS) better than the 7th Pay Commission recommendations.

Those who will hope over these issues will gain nothing but no change in 7th Pay Commission recommendations on allowances are very much hiking possible, they added.

Replying to a question, the sources said, “The demand of central government employees to hike in allowances than the 7th Pay Commission recommendations is likely not to be considered by the secretaries panel.”

“The central government finally decided not to give any facility to central government employees better than the 7th Pay Commission recommendations. Accordingly, the government stuck with the 7th Pay Commission recommendations on pay scales and advances and its implementation have been made forcefully.

Moreover, the government is now engaged in forceful implementation of allowances, which was recommended by the 7th Pay Commission,” the finance ministry sources added.

The sources also said that the quantum of allowances may not vary from those proposed by the 7th Pay Commission as the committee on allowances headed by Finance Secretary stuck with the 7th Pay Commission’s recommendations on allowances.

The Government will not necessarily be bound by the findings of the Empowered Committee of Secretaries on allowances, the sources confirmed.

“The Empowered Committee will make its proposal,” source said. “government will make the decision.”

In late June, after implementing the 7th Pay Commission proposals on salary and pension, Finance Minister Arun Jaitley had announced the ‘Committee on Allowances’, headed by Finance Secretary Ashok Lavasa to examine the suggestions on allowances. It had time till October to give the report but this got delayed.

The decision on allowances was postponed because the 7th Pay Commission wanted a number of these to be abolished or subsumed. Employee unions were opposed.

The ‘Committee on Allowances’ submitted its report to finance minister Arun Jaitley on April 27.

However, the Committee’s report on higher allowances under the 7th Pay Commission haven’t made public.

The report on allowances is now examined by the Empowered Committee of Secretaries (E-CoS) headed by the Cabinet Secretary P K Sinha and after it, it will be placed before the Cabinet.

Shiv Gopal Mishra, secretary of the National Joint Council of Action (NJCA), which is a centralised union of several central government employees unions, met with the Cabinet Secretary recently for inordinate delay on implementation of allowances.

The Cabinet Secretary assured Mishra that the Empowered Committee of Secretaries is likely to take a final decision on higher allowances by June 1.

The central government employees now get all allowances except dearness allowance, according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

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New Delhi: Central government employees unions leaders today is likely to to meet top government officials for higher allowances.

The central government employees now get all allowances except dearness allowance at the old rates until the cabinet approval of higher allowances.

The the Committee on Allowances, headed by Finance Secretary Ashok Lavasa was constituted in June last year after the government implemented the recommendation of the 7th Pay Commission from January 1, 2016 in respect of basic pay and dearness allowances.

The 7th Pay Commission had recommended that of a total of 196 allowances, 52 be abolished altogether and 36 be abolished as separate identities by subsuming them in another allowance, which triggered resentment among central government employees that governments complied with formation of the Committee on Allowances.

The Committee on Allowances submitted its report to Finance Minister Arun Jaitley on April 27.

The 7th Pay commission had recommended abolition of or subsuming of allowances like acting, assisting cashier, cycle, condiment, flying squad, haircutting, rajbhasha, rajdhani, robe, shoe, shorthand, soap, spectacle, uniform, vigilance and washing.

It also recommended slashing the House Rent Allowance (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 unions leaders of central government employees are pressing hard for immediate cabinet approval of higher allowances.

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After the submission of the report on the higher allowances under the 7th Pay Commission, the ball is now Prime Minister Narendra Modi’s court.

Finance Secretary Ashok Lavasa led Committee on Allowances has submitted its report on higher allowances under the 7th Pay Commission and the government is most likely to accept it. Besides higher allowances under the 7th Pay Commission, the issue of arrears is also making central government employees worried. After the submission of the report on the higher allowances under the 7th Pay Commission, the ball is now Prime Minister Narendra Modi’s court. The National Joint Council of Action (NJCA) chief Shiv Gopal Mishra will meet Cabinet Secretary P K Sinha today and discuss the arrears on allowances for the central government employees.

The report on hiked allowances under the 7th Pay Commission was submitted last week by Finance Secretary Ashok Lavasa. The report is being examined by the Department of Expenditure, and will be subsequently placed before the Empowered Committee of Secretaries (E-CoS). After the clearance, it will be sent to Union cabinet for approval. The Ashok Lavasa led panel held as many as 15 minutes with the representatives of National Council (Staff Side), Joint Consultative Machinery (JCM) and representatives of defence personnel in last 10 months.

The NJCA chief Shiv Gopal Mishra was hopeful about arrears for central government employees. “Arrears would mostly be provided to the employees. I will meet Cabinet Secretary tomorrow in this regard. He is heading the Empowered Committee of Secretaries which is scrutinising the report submitted by the Lavasa committee,” Mishra told India.com. “No insights from the report is available so far. We (NJCA) would study the recommendations of the report tomorrow after meeting the Empowered Committee of Secretaries,” he added.

“Modifications have been suggested in some allowances which are applicable universally to all Central government employees as well as certain other allowances which apply to specific employee categories,” the Finance Ministry said in a statement on April 28. The 7th Pay Commission had suggested the abolition of 52 out of the 196 existing allowances, apart from subsuming 36 smaller allowances. The 7CPC panel led by Justice (retd) A K Mathur had also reduced the house rent allowance (HRA) from existing 10, 20 and 30 per cent to 8, 24 and 16 respectively.

The basic pay of the central government employees was hiked from January 1, 2016 as per the 7th Pay Commission recommendations, but for last 10 months, the central government employees have been waiting for the higher allowances. While the government has provided arrears since January 1, 2016, the scheduled date of 7th Pay Commission’s implementation, NJCA has demanded a similar release of arrears on allowances as well. All eyes will be on PM Narendra Modi who may bring ‘achhe din’ for the central government employees announcing arrears on allowances.
Source: India.com

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New Delhi: Giving the hint that government is all set to implement higher allowances, Finance Ministry sources said that ‘higher allowances’ will have no impact on inflation.

Finance Ministry sources today said the government is ready to implement the higher allowances from May after receiving the report of Committee on Allowances.

“Over 47 lakh central government employees and 52 lakh pensioners will benefit by final report on allowances,” the sources added.

After the government implemented the recommendation of the 7th Pay Commission from January 1, 2016 in respect of basic pay and dearness allowances, the Committee on Allowances, headed by Finance Secretary Ashok Lavasa was constituted in June last year.

The 7th Pay Commission had recommended abolition of 52 allowances and subsuming 37 others out of 196 allowances, which triggered resentment among central government employees that governments complied with formation of the Committee on Allowances.

It’s been almost ten months and the Committee on Allowances has not yet set a date for the submission of the report on allowances to Finance Minister Arun Jaitley. However, the committee was initially given four months’ time to submit the report to Finance Minister.

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New Delhi: The central government employees unions demanding higher allowances, a realistic view of what government can afford, the Finance Ministry sources have confirmed.

Speaking to senior Finance Ministry sources were keen to the demands being met, insisting the work of the ‘Committee on Allowances’ to submit its final report within May, will determine what is doable.

“The government has a lot of pressures on the purses this year and higher allowances obviously is a key one. Demands are reasonable and realistic. But the government will not be held hostage,” said one senior source last night.

They told “The issue of higher allowances is currently under consideration by the ‘Committee on Allowances’.

In line with their mandate, the committee will produce a report within May.

This report will form the basis of negotiations with the central government employees unions. Any higher allowance settlement emitting from these negotiations must be affordable and sustainable.

The National Joint Council of Action (NJCA), which is a centralised union of several central government employees unions, has told cabinet secretary that the higher allowances must be given with retrospective effect from January 1, 2016.

The committee will have regard to the national finances before accepts NJCA above demand, the source said.

The central government employees unions had threatened to call for nationwide strike in May due to delay in implementation of higher allowances.

In response to this, the sources said, “the government expects the ‘Committee on Allowances’ to report by May or even before then. They are going to be very difficult discussions and negotiations.”

The ‘Committee on Allowances’, headed by Finance Secretary Ashok Lavasa was formed in July last year for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance as the pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances.

The committee was initially given four months time to submit the report to Finance Minister Arun Jaitley.

Later, the Finance Minister Arun Jaitley extended the deadline for report submission to February 22, 2017 but committee has not yet submitted its report.

The central government employees got theirs arrears of basic pay arising from implementation of the 7th Pay Commission recommendations in one go in August salaries. The hike in basic pay has been made effective from January 1, 2016 but they are still awaiting for the higher allowances.

The employees now get all allowances except dearness allowance, according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

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New Delhi: The central government employees unions, aggrieved over the delay on higher allowances under the 7th Pay Commission recommendations, may call for nationwide strike if the Committee on Allowance fails to submit its final report within this month.

The Committee on Allowances is likely to submit its report on higher allowances under the 7th Pay Commission to the Finance Ministry this week, media reported.

But there is no official confirmation in this regard.

It’s been almost nine months since the formation of the Committee on Allowances, but it is yet to submit its report.

The government in July last year had formed the ‘Committee on Allowances’, headed by Finance Secretary Ashok Lavasa, for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance as the pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances.

The committee was asked to submit its report within four months, but later its tenure was extended to February 22, this year.

However, the Finance Secretary Ashok Lavasa said in October last year, “We are ready to submit our report, when the Finance Minister Arun Jaitley calls up.”

Meanwhile, the National Council Staff Side has called a meeting on May 2 of the Joint Consultative Machinery (JCM) to discuss the next course of action if the Committee on Allowance further delays report.

National Joint Council of Action (NJCA) convenor Shiv Gopal Mishra said the central government employees might go on strike if the Committee on Allowances delays the report further or rejected their demands.

The National Joint Council of Action (NJCA) is an umbrella organisation of various Central Government employees unions, including Railways, post and telegraph and Income Tax.

The NJCA is leading the negotiation over 7th Pay Commission on behalf of central government employees.

“The JCM meeting is called on May 2. Whether the Lavasa Committee submits it report or not (by the end of the month), the meet would be held.

If the report on allowances is not tabled, then we will plan the next step of action. I cannot rule out the option of reviving the call for strike.

After all, how long should the employees wait?” said Shiv Gopal Mishra.

The issue of hike in minimum pay would also be discussed at the JCM meet.

“It is the centrifugal issue. All pay commission so far had kept the issue of minimum salary at the centre. We will negotiate with the government and attempt to persuade them,” he said.

Central government employees are unhappy because of the pay commission recommendation of reducing the house rent allowance (HRA) to 24%, 16% and 8% of basic pay as against the 30%, 20% and 10% of basic pay employees were drawing under the Sixth Pay Commission.

It is noted that central government employees unions also demanded for hiking minimum pay Rs 18,000 to Rs 26,000 and they asked to raising fitment factor 3.68 times from 2.57 times approved by the government based on the pay commission recommendations.

If the 2.57 fitment formula is tinkered with, then salary and pension in general for all central government employees will go up.

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The National Joint Council of Action (NJCA), which is leading the negotiation over 7th Pay Commission on behalf of Central Government employees, has not boycotted the issue of minimum salaries. Speaking to India.com, NJCA convenor Shiv Gopal Mishra reiterated that the issue would be raised by National Council (staff side) after the anomalies related to allowances and pensions get settled.

“Minimum salary is an important issue. We will surely negotiate it with the Government. Once the matter pertaining to allowances and pensions gets settled, the NJCA will raise it,” Shiv Gopal Mishra said.

As per the recommendations of 7th Pay Commission, the minimum salaries of Central Government employees was hiked from Rs 7,000 to Rs 18,000. The fitment factor used by Justice AK Mathur-led 7th pay panel was 2.57. The NJCA has demanded the Government to upgrade the fitment factor to at least 3.68, in order to revise the minimum salaries to Rs 26,000.

The Confederation of Central Government employees has also demanded the Government to raise the minimum salaries to Rs 26,000, along with the regularisation of contractual employees.

The issue of minimum salary was one of the key agenda laid before NJCA before the Government in July 2016, when they had threatened a mass strike. Nearly 33 lakh Central Government employees were expected to participate in the indefinite strike which was scheduled to begin from July 11. However, after receiving assurance from Centre, the NJCA was compelled to retract their mass agitation.

No indication has been given from the Government so far regarding the upgradation of minimum salary using a fitment factor of 3.68. According to experts, Centre could adopt a middle road by using a fitment factor of anything between 2.86 to 3.15. The minimum salary, thereby, could be increased between Rs 19,000 to 22,020. However, no official confirmation regarding the same has been received.

The utmost target for NJCA, before the hike in minimum salary, is the implementation of higher allowances. Due to anomalies raised by unions in July, only the basic component of salary was raised for Central Government employees. The hike in allowances was awaited as Centre formed a committee under Finance Secretary Ashok Lavasa to review the demands raised by unions.

Source : india.com

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