Cabinet to decide on allowances under Pay Commission: Arun Jaitley

| October 19, 2016

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NEW DELHI: The Union Cabinet will take a decision on the suggestions of a special committee which has been set up to look into the provision of allowances under the 7th Central Pay Commission recommendations, Finance Minister Arun Jaitley said today.

Replying to a question on the pay commission , the minister said the government has decided that the recommendations on allowances, other than dearness allowance, will be examined by a committee headed by Finance Secretary as Chairman and Secretaries of Home Affairs, Defence, Health and Family Welfare among others as its members.

The committee, which was constituted on July 22, has been asked to submit its report within four months. Its first meeting took place on August 4.

“As far as allowances are concerned, 51 have been abolished while 37 have been subsumed. As the measures are radical in nature, even the employees’ unions have given their suggestions in the matter and therefore a special committee has been formed to look into it. Whatever the committee decides, it will go to the Cabinet,” Jaitley said.

The matters relating to pay and pension as decided by the government have been implemented with effect from January one this year.

To cash in on the 7th Pay Commission payouts, state-owned Punjab National Bank (PNB) is offering home and auto loans at attractive rates of 9.3-9.8% beginning this month. Besides, the bank will offer loans to government employees without any processing or upfront fee and no documentation charges will be levied on them.

The Delhi-based state lender said the objective of the drive— christened ‘PNB Pride’—is to “ensure availability of housing and vehicle loan at attractive rates and ensure a house and a car for all government employees”. For housing loan, the floating interest rate has been fixed at marginal cost of lending rate (MCLR) for one year at 9.3%. For those availing the housing loan on a fixed rate basis, it will be a floating one of interest plus 0.50% (9.8%).

For car loan, customers will be charged MCLR of one year plus 0.25% (9.55%) on a floating basis. As for fixed interest rate with a reset clause of 3 years, it will be MCLR of one year plus 0.25%, or 9.55%.

Permanent employees of central and state governments, defence personnel and paramilitary forces will be able to avail of the benefits of lower rates under the PNB Pride scheme. All other terms and conditions of the existing housing and car loan scheme will be applicable to the borrowers.

Category: News, Seventh Pay Commission

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