In August 2016, the Central government, on the recommendation of 7th pay commission, had given higher basic pay with arrears, with effective from January 1, 2016, to its employees and mentioned a raise in allowances, also had mentioned a raise in dearness allowance (DA).
Sen Times quoted an employee leader union saying the complicated bureaucracy is delaying the implementation of the higher allowances under 7th Pay Commission(CPC) recommendations, and it is expected to start in 3 to 4 months.
The Central government has given a time frame of 4 months to the committee for submitting its report, and on the report of higher allowance, the last date is extended to February 22, 2017.
Ashok Lavasa, the finance secretary, also the head of the committee on allowances had in October last year stated that his team’s report was ready. The 7th pay commission had suggested for recommended stopping 51 allowances and merging 37 others out of 196 allowances.
The Government blamed cash crunch for the delay in the announcement of higher allowance. Also, the government took the support of assembly elections in the 5 states in the delay of higher allowance and had it announced it, then the government would have violated the model code of conduct.
The higher HRA(House Rent Allowance) will in a large scale benefit the employees of the government, as the allowance will from 106 per cent increase to 122 per cent, and that is why the government employees possess a great interest in the HRA.
Right now the current rates of HRA for class X city is 30 per cent, class Y city is 20 per cent and , for class Z city is 10 per cent as per 6th pay commission and the committee has suggested that HRA should be revised to 27 percent, 18 per cent and 9 percent when the DA crosses 50 percent, and when DA crosses 100 percent it should be revised to 30, 20, and 10 per cent.
The higher allowance will most probably be announced post-March 8 and it is likely to provide benefit to 48 lakh employees of central government, and will also be fruitful for many pensioners.
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