7th Pay Commission – Govt Mulling hike in higher Allowances – May Pay without Arrears.

7th Pay Commission – Govt Mulling hike in higher Allowances – May Pay without Arrears.

Amid reports that central government employees will have to wait til March, 2017 to get their higher allowances under the 7th Pay Commission recommendations, sources said the Centre may pay higher allowances soon without arrears.

Sources in the Finance Ministry also said the Centre is considering to hike higher allowances for its employees. The development came after PMO asked the Finance Ministry to ready the higher allowances proposal without arrears before the budget.

The government is now planning to pay higher allowances under the 7th Pay Commission recommendations without arrears before budget session, sans arrears. The government is in dilemma about the payment of higher allowances following cash shortage due to demonetisation of old Rs 500 and Rs 1000 notes. Sources said thery will be paid the higher allowances, but central government employees will have to wait for that.

“We can expect the higher allowances without arrears under 7th pay commission recommendations in the coming days as the PMO thinks payment of the higher allowances with salaries on salary day cannot be “chaotic”,” a Finance Ministry sources was ‘quoted’ as saying .. “The PMO might ask the Finance Ministry to ready the higher allowances proposal without arrears before the budget.

The Finance Minister Arun Jaitley can also take some time to formalise this announcement. The issue of arrears of higher allowances may not be reconsidered”, he added.

A Finance Ministry official also said that  the government is mulling hike in higher allowances. “The financial advisors of the government believes that  it could be tough to give arrears of the higher allowances as millions will queue outside the money dispensers to get higher allowances as the cash crunch could be normalised only in three toor four months,”

While the government is paying higher basic pay with arrears, effective from January 1, 2016 to its employees on the recommendations of the 7th pay commission, the issue of higher allowances has been referred to the ‘Committee on Allowances’. Ashok Lavasa, who heads the ‘Committee on Allowances’, said in October, “We are ready to submit our report, when the Finance Minister Arun Jaitley calls up.”

However the government has given an extension to the committee till February 22, which led to conclusion that the government may start giving higher allowances after March.

Until the acceptance of higher allowances under the 7th Pay Commission, the allowances are now paid in accordance with the 6th Pay Commission recommendations.

Source: India.com