New Delhi: The central government is likely to announce fatter allowances under the 7th Pay Commission recommendations for its 4.8 million employees, in a bid to ease the inflationary pressure, Finance Ministry official sources said.
In fact, it’s the only hike in basic pay is not helpful for maintaining central government employees’ living standard, Finance Ministry sources told The Sen Times on Tuesday.
“The basic salaries of government employees has been increased on the recommendations of 7th Pay Commission, which are giving them some financial comfort,” they said and added, a step they had hoped might be taken next month, when government will announce the fatter allowances.
Sources in the Prime Minister’s Office (PMO) said a formal announcement on fatter allowances will be made soon.
The Finance Ministry official sources confirmed the Finance Minister Arun Jaitley is likely to approve the proposal of committee on allowances headed by Finance Secretary Ashok Lavasa which will stick to the 7th Pay Commission’s recommendations on allowances like glue and the fatter allowances will be implemented with prospective effect.
The committee on allowances, which was set up in July this year on the direction of the cabinet, is looking into the provision of allowances other than dearness allowance under the 7th Pay Commission recommendations as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.
“The central government employees now get a little hike in basic pay, the overall hike percentage in basic pay 14.28 while according to the 7th pay commission recommendation, allowances contribute 63 percent hike, which was recommended a substantial improvement.” sources said.
“With the current basic pay hike and steep inflation, it is not possible for employees to make ends meet. It is also impossible to sustain with their current basic pay without hike in allowances. Inflation has climbed steadily over the past few years, which the fatter allowances will help to compensate.
Accordingly, the fatter allowances will hopefully attract the employees to live with dignity and the committee on allowances is likely submit its report in this week, which will be forwarded to the cabinet in October ,” assured the officials.
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