7th Pay Commission: Committee on allowances to meet this week

Date : 3.8.2016

7th Pay Commission: Committee on allowances to meet this week

7th Pay Commission: Payment of arrears with current month salary; committee on allowances to meet this week

The first meeting of the Finance Secretary-led committee appointed to look into the allowances recommended by the 7th Pay Commission is scheduled this week while the payment of arrears will be paid to central government employees and pensioners in a single installment along with this month salary.

IANS has reported quoting Finance Secretary Ashok Lavasa that the committee on allowances will have its first meeting this week.

The Committee will submit its report within a period of four months. Till a final decision on Allowances is taken based on the recommendations of this Committee, all Allowances will continue to be paid at existing rates in existing pay structure, as if the pay had not been revised with effect from 1st day of January, 2016.

"The 7th Pay Commission examined a total of 196 existing allowances and, by way of rationalization, recommended abolition of 51 allowances and subsuming of 37 allowances. Given the significant changes in the existing provisions for allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on allowances," as per the press release issued by the government after the Cabinet approval to Pay Commission recommendations.

It was estimated by the Pay Commission that the additional financial impact on the exchequer due to the implementation of all its recommendations in 2016-17 will be Rs 102,100 crore. This apart, it had estimated an additional implication of Rs 12,133 crore on account of arrears.