After DA, Central Govt Employees Now In Wait For Higher Allowances
New Delhi: The central government Thursday increased dearness allowance (DA) to 4 per cent from existing 2 per cent from January 1, 2017, benefiting 48.85 lakh employees and 55.51 lakh pensioners, in a bid to ease the inflationary pressure.
The committee was initially given four months’ time to submit the report to Finance Minister Arun Jaitley.
All eyes of central government employees are now on ‘Committee on Allowances’, which will take a final decision in higher allowances under the 7th Pay Commission recommendations.
In a written reply to a question on 7th Pay Commission in Lok Sabha on March 10, Minister of State for Finance Arjun Ram Meghwal said the Committee on Allowances, under Finance Secretary Ashok Lavasa, is yet to submit its report.
The Committee on Allowances was formed in July 2016 following protests by government employees over recommendations of the 7th Pay Commission on allowances.
The 7th Pay Commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.
The committee was initially given four months’ time to submit the report to Finance Minister Arun Jaitley.
Later, the Finance Minister extended the deadline for report submission to February 22, 2017.
However, In October 2016, Ashok Lavasa was quoted by some agencies as saying that he was ready with the report.
The increasing of Dearness Allowance (DA) of central government employees and officials were not helpful for maintaining their living standard, Finance Ministry’s officials said on Thursday.
They also said higher allowances under the 7th Pay Commission recommendations should implement which would give them some financial comfort, a step they had hoped might be taken within this month.
“The cabinet is likely to approve the proposal of committee on allowances and the higher allowances will be implemented with retrospective effect from August 2016 but the central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016,” the sources confirmed.
“Moreover, arrears for higher allowances will be paid from August,” the sources assured.
The central government employees and pensioners got theirs arrears of basic pay and pension arising from implementation of the 7th Pay Commission recommendations in one go in August salaries and pension respectively. The hike in basic pay and pension has been made effective from January 1, 2016.
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