7th Pay Commission: Fatter Allowances To Be Paid By 31 October

New Delhi: There is good reason to cheer for central government employees as the committee on allowances headed by Finance Secretary Ashok Lavasa that was entrusted with a job to examine the recommendations in respect of allowances made by the 7th Pay Commission may be ready with their own recommendations within two months. The cabinet announcement will be most likely be made by

Finance Minister in October.  The 7th pay commission headed by Justice A K Mathur had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances. The representatives of the employees unions had earlier conveyed to the government that they did not want it to approve the 7th Pay Commission recommendations on allowances without examining them further.

So, the Union Cabinet directed to set up a committee to look into the provision of allowances other than dearness allowance under the 7th Pay Commission recommendations, when the Cabinet cleared the recommendations of the Pay Commission for hike in basic pay and pension for central government employees on June 29.

Accordingly, on July 22, the government constituted the committee and asked to submit its report within four months but the committee on allowances which is ready submit its report within two months.

The hike in allowances is likely to happen by October this year, a top Finance Ministry’s official told the Sen Times on Friday.

Moreover, the committee on allowances is likely to stick with the 7th Pay Commission’s recommendations on allowances and it will be prospective, he said.

“Allowances contribute 63 percent hike, according to the 7th pay commission recommendation. The allowances, which the commission proposed is very substantial. The central government employees now get a little hike in basic pay”, he said.

However, once the committee on allowances finishes examining the 7th pay commission recommendations on allowances, it will go for a fresh cabinet nod. The cabinet announcement will be most likely be made by Finance Minister Arun Jaitley in October, he assured.