New allowances for central staff likely to be paid from October

Date : 13.9.2016

New allowances for central staff likely to be paid from October.

Government employees will have a real festive bonanza this year. As per media reports, central government employees will get the revised allowances as per recommendations made by 7th Pay Commission from October 1.

The Committee on Allowances under the chairmanship of Union Secretary, Finance (Expenditure) had on September 1 met with representatives of the Central government unions.

The committee is expected to give its reports on revised allowance to Finance Minister Arun Jaitley this week.

On July 22, the Committee on Allowances was set up to decide on revision of allowance as Justice A K Mathur panel had earlier recommended abolition of 51 allowances and subsuming 37 others.

"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," a press release issued by the government after the Cabinet approval to Pay Commission recommendations had said.

The government has notified a 2.57-time hike in basic salary for 1 crore government employees and pensioners as per the 7th Pay Commission recommendations. The pay hike has been made effective January 1, 2016.