7th Pay Commission – New Allowances ‘Likely’ to be Paid from October 1 – This development comes days after the second meeting of the committee on allowances which was held on September 1.
7th Pay Commission allowances for all central government employees under the new pay matrix will be implemented from October 1, 2016, a top Finance Ministry’s official told in anonymous.
Central Government employees will be receiving the revised allowances from October 1, 2016. The recommendations of the 7th Pay Commission covers some 48 lakh Central government employees and 52 lakh pensioners. “This development comes days after the second meeting of the committee on allowances which was held on September 1, following which the employees will now get the new allowances with their October salaries,” he said.
Under the chairmanship of Union Secretary, the Committee on Allowances met with representatives of the Central government unions on September 1. The committee is likely to submit its report to the Finance Minister Arun Jaitley within a week.
The central government employees union leader Shiv Gopal Mishra also said after the meeting, “Let us believe that, after the meeting, report of the said committee would be sent to the Government of India for its acceptance.”
A press release issued by the government after the Cabinet approval to Pay Commission recommendations had said: “The 7th Pay Commission examined a total of 196 existing allowances and, by way of rationalisation, recommended the abolition of 51 allowances and subsuming of 37 allowances. Given the significant changes in the existing provisions for allowances which may have wide-ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th pay commission on allowances.”
“Allowances contribute 63 percent in the pay hike recommendation. The allowances which the commission proposed is very substantial. So, the central government employees now get a little hike in pay but the finance ministry will soon move the Cabinet with changes in allowances providing for full compensation to the central government employees after getting the report from the committee on allowances,” said the official.
The sources indicate that no arrears for allowances will be paid, as per usual practice, the allowances would be paid from the date of implementation.
However, the central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016.