Central government employees are seeing a ray of hope with regard to hike in allowances after RBI Governor Urjit Patel’s comment during the post-monetary policy review meeting on December 7, 2016. While the Narendra Modi government has implemented the salary hike as recommended by the 7th Central Pay Commission (CPC), the decision on allowances is pending.
The Sen Times reports that a top official of the finance ministry today told The Sen Times on condition of anonymity that Central government employees’ salaries for January will be in line with the higher allowances.
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Govt has formed a committee to examine the recommendations of 7th Pay Commission relating to all 196 allowances. Here is an analysis on why Common allowances should not be clubbed with other allowances
7th Pay Commission has recommended that more than fifty Allowances are to be abolished. It has also provided its recommendations relating certain important allowances such as Fixed Medical Allowance applicable to Pensioners to the effect that there is no need for revising those allowances.
Besides recommending that 52 allowances be abolished, the 7th pay Commission suggested that another 36 be subsumed in an existing allowance or in new allowances it proposed.
7th Pay Commission had earlier assumed that DA from January 2016 as 125% for revision of pay and allowances of Central Government Employees – DA orders issued by Govt with effect from 1st January 2016
Serving (State/Central) Government servants, Semi Government/ Autonomous Bodies, Employees paid from the Consolidated Fund of India or through Grants-in-aid are treated as Official Members.