7th Pay Commission Allowance Committee to submit report today, says Shiva Gopal Mishra, NJCA convener

Committee on Allowances ready to submit its report to Govt

7th Pay Commission Allowance Committee to submit report today, says Shiva Gopal Mishra, NJCA convener

The Allowance Committee report, eagerly awaited by more than 40 lakh Central Government employees, will be submitted today to the Government. This was said by Shiva Gopal Mishra, the national convener of the Central Government employees’ Federation. 

The central cabinet, on June 29, 2016, gave its nod to the recommendations submitted by the Seventh Pay Commission, regarding the hikes and revisions in the salaries for Central Government employees all over the country. 

Ever since the Pay Commission recommendations were revealed, the Central Government Employees Federation has been voicing its objections and dissatisfaction. Multiple protests were organized, reiterating their point that the recommendations of the Seventh Pay Commission should not be taken as such in issues like Minimum wages, Fitment Factor, HRA, and NPS. 

Despite a number of demands made by various associations, over various issues and allowances, including the HRA, the Central Government agreed to immediately constitute a High Power Committee headed by the Finance Secretary to look into the grievances and demands. The government also announced that all allowances, including HRA, will be paid as per the recommendations of the Sixth Pay Commission. 

The real salary hikes recommended by the Seventh Pay Commission have not yet been given to the employees. The House Rent Allowance forms an important part of the wage increment. The real benefits of the recommendations of the Seventh Pay Commission will be enjoyed by the employees only if the HRA is increased. 

Reports claim that the special committee constituted under the leadership of Ashok Lavasa, the Secretary, Ministry of Finance, to look into the issue of allowances, has prepared its report and that the report will be submitted to the Central Government today. 

The Seventh Pay Commission had recommended the abolition of 51 of the 193 allowances that are currently being given to the Central Government employees. The commission has also recommended the reforming of 37 allowances. The Ashok Lavasa committee has reviewed these recommendations. Unconfirmed reports claim that the committee has considerably increased the house rent and travel allowances. The newly recommended allowances will come to effect from April 2017 onwards, after getting the approval of the Central Government. 

The government had allocated Rs. 64,677 crores to meet the additional expenses incurred by the revised allowances.  This will be increased to Rs. 69,222 crores for the 2017-18 financial year. During the same period, the travel allowance will be increased to Rs. 4,714 crores from the current Rs. 4,323 crores. Excepting travel allowance, the fund allocation for all other allowances has been increased by seven percent.  

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