7th Pay Commission Latest News: Report on fatter allowances to get Cabinet nod this month, no hike for central govt employees

The report of the ‘Committee on Allowances’, headed by Finance Secretary Ashok Lavasa, on fatter allowances under the 7th Pay Commission recommendations is likely to get Cabinet approval in this month.

The report of the ‘Committee on Allowances’, headed by Finance Secretary Ashok Lavasa, on fatter allowances under the 7th Pay Commission recommendations is likely to get Cabinet approval in this month. The ‘Committee on Allowances’ is unlikely to suggest any hike in fatter allowances and would stick with the recommendations of the 7th Pay Commission. The ‘Committee on Allowances’ is ready with its report on fatter allowances under the 7th Pay Commission and will submit it to the Finance Ministry soon. The Cabinet meetings in this month is understood to approve the proposal of ‘Committee on Allowances’.

According to reports, Prime Minister’s Office (PMO) has directed the Finance Ministry to obtain report from the ‘Committee on Allowances’ and to prepare cabinet note in this regard. Sources in the Finance Ministry said Finance Minister Arun Jaitley will soon place fatter allowances note before the Cabinet for approval after receiving the ‘Committee on Allowances’ report. 

The central government employees have been waiting for fatter allowance since July when the government issued the notification for the implementation of the 7th Pay Commission recommendations. The 7th pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances, which was opposed by the central government employees’ unions. In order to review the suggestions, Union Finance Minister Arun Jaitley formed the ‘Committee on Allowances’ on July 22 for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance.

The ‘Committee on Allowances’ was given four months to submit report on fatter allowance, however the special committee is ready with the report before deadline and waiting for Cabinet’s approval. The ‘Committee on Allowances’ is unlikely to give any respite to central government employees as it is not going to make any changes in the recommendations of the 7th Pay Commission on fatter allowances.

Earlier we also reported that the Finance Ministry has made it clear that the National Anomaly Committee on behalf of the government won’t consider any hike in basic pay and fatter allowances recommended by the 7th Pay Commission. Sources also said the government has decided to stick to the recommendations of the 7th Pay Commission on basic pay and there will no no hike in basic pay or fatter allowances.

As per the notification for the implementation of the 7th Pay Commission, central government employees will get 14.27 per cent hike in basic pay at junior levels, which is the lowest in 70 years. The Cabinet also approved the increase in minimum pay Rs 18,000 from existing Rs 7,000.