7th Pay Commission: No arrears on allowances to Central Government employees

New Delhi, January 5: Central government employees eagerly waiting for the implementation of 7th Pay Commission will won’t be happy to learn that the Union Government has decided that ‘no arrears on allowances will be given to central government employees’ after the recommendations made by 7CPC is implemented. The 7th Pay Commission recommendation made by the committee will be implemented only after elections in five state comes to a conclusion. After Elections in Uttar Pradesh, Uttarakhand, Punjab, Goa and Manipur is completed central government employees can expect higher allowances, a Sen Times report suggested.

According to Sen Times report which quoted an unidentified source from Finance Ministry confirmed that “No arrears on allowances will be given to employees”.

The announcement of both higher allowances and implementation of 7CPC will come after March, almost nine months after Union Government implemented the recommendations made by Justice A K Mathur committee.

In November 2015, Justice A K Mathur, Chairman, 7th pay Commission had tabled a report to Finance Minister Arun Jaitley recommending 14.27 per cent hike in basic pay, an increase in overall salary, allowances and pensions to be increased by 23.55 per cent. The increase in allowance will be higher by 63 per cent while pensions to rise by 24 per cent.

Justice Mathur had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances, so the government hiked the basic pay but referred hike in allowances other than dearness allowance.

In October the ‘Committee on Allowances’ finalised the report but the government gave then the extension till February 22, 2017, to submit its report for getting normalised the cash crunch position.

The Election Commission on Wednesday announced elections to state assemblies in Uttar Pradesh, Uttarakhand, Punjab, Goa and Manipur. In these five states, the election will start on February 4 and will end on March 8 and the results of which will be announced on March 11.

On Wednesday the Election Commission also made it clear that the model code of conduct will come into force with immediate effect.

The central government employees are getting allowances under the 6th Pay Commission recommendations.