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.