7th Pay Commission latest news: BIG! Allowance relief for central government employees from Modi Govt; Know details here!

7th Pay Commission latest news: Narendra Modi Government has taken this big step to bring relief to Central Government employees on allowance, who had to pay heavy cancellation charges for air/train tickets meant for their Leave Travel Concession (LTC) due to the COVID-19 lockdown

ZeeBiz WebTeam | Jan 31, 2021, 11:20 AM IST

7th Pay Commission latest news: The Narendra Modi Government has taken this big step to bring relief to the Central Government employees on allowance, who had to pay heavy cancellation charges for air/train tickets meant for their Leave Travel Concession (LTC) due to the COVID-19 lockdown.  The government has decided to give one-time reimbursement/rescheduling charges paid by the central government employees as applicable in 7th CPC system. Source: PTI

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Office Memorandum

Office Memorandum

The announcement has been made by the Department of Personnel and Training (DoPT), which has already issued Office Memorandum (OM) regarding this 7th pay commission linked LTC allowance. This comes as a huge relief for the government employees working with the Centre. Source: PTI  

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Cancellation Charges

Cancellation Charges

The official statement said that during lockdown all domestic flights within India were cancelled but certain airlines have charged the cancellation charges against the pre-booked air tickets. Source: PTI 

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LTC Tickets

LTC Tickets

The statement further said that Government employees who had booked LTC tickets are now facing financial difficulties in view of the high cancellation amount charged by the airlines. Source: PTI

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Demand Employees

Demand Employees

Demand was raised by central government employees for grant of one-time relaxation for reimbursement of the cancellation charges, it averred. 

Many airlines did not refund the ticket amount. Statement said that these airlines have kept the booking amount with them in the form of 'credit shell' and have given the option to the passengers to travel within a year.  Source: PTI

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This is causing undue hardships to the Government employees as the LTC advance along with penal interest, is required to be returned if the journey is not undertaken, the OM said. Source: PTI

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These were the decisions taken:  

1] Ministries/Departments are delegated the power to reimburse the cancellation/ reschedule charges of air/train tickets, as a one-time relaxation, to such Government servants who had booked advance air/train tickets for the purpose of LTC journey during the Lockdown. Such government servants shall be required to produce the receipt of cancellation/reschedule charges incurred by them. 

2] In cases where the airlines have kept the refund amount in 'Credit Shell', Ministries /Departments may extend the period of repayment of LTC advance taken by the Government servant for LTC journey scheduled during the lockdown period. Also, penal interest may not be charged on LTC advance amount taken by the Government servant on LTC journey scheduled during the lockdown period. 

3] The LTC advance and leave encashment which have remained unsettled due to non-performance of the journey, may be adjusted as per the provisions of the Special Cash Package Scheme. Source: PTI