7th Pay Commission: Are revised allowances coming from July itself?
Now that finance ministry has asked central ministries to ensure recommendations made under 7th Pay Commission to be paid from current months salary.
- 7th Pay Commission to benefit 48 government employees
- Finance Ministry wants recommendations made under 7th CPC in the current month's salary
- 7th CPC is estimated at Rs 30748.23 crore per annum.
48 lakh employees may see their higher allowance from July itself as the Finance Ministry has urged various central ministries and department to ensure the revised rates of allowances under 7th Pay Commission are paid immediately.
On July 07, the ministry issued notification regarding 7th Central Pay Commission by publishing in Gazette of India.
In the notification, the government advised concerned ministries to issue their Orders on Allowances governed by them immediately so that the revised rates of allowances get reflected in the current month's Salary Bills of the central government employees.
"Based on the Report of Committee on Allowances (CoA) and the recommendation of E-CoS, the Cabinet had earlier approved the modifications in 34 Allowances in its Meeting held on 28th June 2017," Cabinet Committee on Economic Affairs said.
This revised allowance will come into effect from July 1, 2017. The recommendations allowance will benefit 34 lakh Civilian employees and 14 lakh Defence Forces personnel, said the ministry.
7th CPC examined 197 allowances, recommending abolition of 53 allowances and subsuming 37 in others.
Recommendations included arrears like House Rent Allowance, Dearness Allowance, Transport Allowance and many others under the 7th Pay Commission.
Modifications approved by the Government in the 7th CPC on allowances will lead to a modest increase of Rs 1448.23 crore per annum over the projections made by the 7th CPC.
Combined additional financial implication on account of the 7th CPC recommendations along with the modifications approved by the Cabinet is estimated at Rs 30748.23 crore per annum.