The notification for the implementation of the fatter allowances under 7th Pay Commission recommendations is likely to be issued in November, said Finance Ministry sources.
New Delhi, Oct 29: The notification for the implementation of the fatter allowances under 7th Pay Commission recommendations is likely to be issued in November, said Finance Ministry sources. Prime Minister Narendra Modi led government, after approving a 2 per cent hike in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, is now preparing for notifying fatter allowances implementation under 7th Pay Commission. Once the notification issued, the revised allowance recommended by the 7th Pay Commission will be given to central government employees from November.
According to Finance Ministry sources, ‘Committee on Allowances’, headed by Finance Secretary Ashok Lavasa, will soon be invited to submit its report on fatter allowance under 7th Pay Commission. Union Finance Minister Arun Jaitley formed ‘Committee on Allowances’ on July 22 for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance. The 7th pay commission recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances.
The central government employees have been waiting for fatter allowance since July when the government issued the notification for the implementation of the 7th Pay Commission recommendations. The central government employees and pensioners have received theirs arrears of basic pay and pension arising from implementation of the 7th Pay Commission recommendations in one go in August salaries and pension respectively. But the revised allowances haven’t been fixed under new pay.
“Allowances contribute 63 percent in the pay hike recommendation. When the allowance is not taken into consideration it will mean fewer amounts because the allowance which the commission proposed is very substantial. Accordingly, the central government employees get a little hike in pay now, so employees are pressing hard to issue it very shortly” a source in the PMO was quoted as saying by the Sen Times.
The ‘Committee on Allowances’ was given four months to submit report, however the special committee is ready with the report before deadline. Earlier we reported that Finance Minister Arun Jaitley couldn’t get enough time to discuss the matter with ‘Committee on Allowances’, which delayed process of implementing fatter allowances under 7th Pay Commission.
Sources also confirmed that the government will be implementing the fatter allowances with retrospective effect from August 2016, however central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016. The ‘Committee on Allowances’ sticks with the 7th Pay Commission’s recommendations on allowance and arrears for higher allowances will be paid from August, they added.