7th Pay Commission – Committee of Secretaries on Allowances – The announcement will come along with the approval of the bonus, a top Finance Ministry’s official told in anonymity.
Even as thousands of pensioners have registered their protest against the recommendations of the 7th Pay Commission, saying that the increase suggested by the panel was measly, the government is scrambling to appease them with interim awards.
The two committees set up to look into the anomalies in pensions and allowances are expected to announce some compensation for the pensioners, in an attempt to blunt the criticism. The review report of the panels is expected to be submitted in the next 10-15 days. The report that seeks to revise the allowances, will be submitted to the Union Finance Minister Arun Jaitley.
“They are expected to announce some interim award. The government will consider them,” a senior government official told Times of India, on condition of anonymity. After scores of pensioners and government employees slammed the recommendations of the 7th Pay Commission, saying that the increase was not enough, some employee associations raised the demand for a revision.
As of January 1, 2016, the salaries and allowances of all pensioners was raised by 14.3 per cent, according to the recommendations. The salaries and allowances of those in the upper bracket were raised by up to 23 per cent. The recommendations of the 7th pay Commission were approved by the Cabinet in June 2016, with the assurance that all arrears and raise in salaries will be applicable for the same financial year, that is, 2016-17.
The announcement will come along with the approval of the bonus, a top Finance Ministry’s official told in anonymity.
“All new allowances is likely to propose doubling of existing rates of allowances,” he said.
“The government had set up a ‘Committee on Allowances’ under the chairmanship Finance Secretary on July 22 for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance because the pay commission had recommended abolition of 51 allowances and subsuming 37 others after examining 196 allowances” he added.
The two meetings of the committee were held on August 4 and September 1, after the second meeting, Shiv Gopal Mishra, Secretary (Staff Side) said, “Let us believe that, after the meeting, report of the said committee would be sent to the Government of India for its acceptance.”
The central government employees unions demanded in the second meeting that House Rent Allowance be fixed at range 10 to 30 per cent of the basic linked to the classification of the town of posting, children education allowance of Rs. 3,000 and hostel subsidy of Rs.10,000. All these allowances should be tax exempt.
The unions demanded for implementation of the allowances with retrospective effect from January 2016. However, there is a usual practice to pay the allowances from the date of implementation.