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Revised allowances not expected before March 2017




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18 Dec, 2016 11:46p.m.

Ministry of Finance has been provided with two additional months to notify the recommendations to be made by high-level committee chaired by Finance Secretary Ashok Lavasa.

The revised allowances for central government employees is likely not be implemented before March 2017. The indication has been made by Reserve Bank of India (RBI) Governor Urjit Patel. While presenting the monetary policy, Patel said that the impact of 7th Pay Commission salaries and arrears have not been disruptive to inflation outcomes. Patel further added that the full effect of the implementations of 7th Pay Commission’s recommendations would be felt in the next financial year.

Ministry of Finance has been provided with two additional months to notify the recommendations to be made by high-level committee chaired by Finance Secretary Ashok Lavasa. The panel was formed in July this year to look into the anomalies raised by employee unions after the 7th Pay Commission report of AK Mathur was accepted by the government.

The employee unions have expressed dissatisfaction against the government for not addressing their demands. One of their main plight was restoration of the allowances subsumed and abolished by the 7CPC report handed over by AK Mathur led panel. Out of 191 allowances, 37 have been subsumed, whereas, 51 have been abolished.

President of Confederation of Central Government Employees & Workers, KKN Kutty, along with Secretary General M Krishnan, have announced a mass strike of central government employees on February 15, pushing for their 21-point-charter of demands.

One of the main points being stressed by the staff side employee unions is the revising the HRA at the existing framework of 10, 20 and 30 per cent. They have also demanded the government to enable ‘Option 1’ for pensioners, which would allow them to draw their hiked pensions to be upscaled according to the pay grade and pay band they were enrolled at the time of retirement. The unions have also demanded the regularization of all contractual workers and upscaling their minimum salary as per the recommendations of 7th Pay Commission.


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