7th Pay Commission report on revised allowances: Central staff has been waiting anxiously for what the Narendra Modi government has in store for them. They have received their revised salaries, but the allowances have created a problem and they are yet to see a penny of the amount and the wait does not look like it will end anytime soon. However, it is being said that the Cabinet would look at the proposals on this topic by end June and they may well receive the same, including house rent allowance (HRA), by July 18. However, there is no official confirmation about this yet. The numbers involved are huge in every sense, including the number of people it covers – over 4.9 million central government employees – the staff has been waiting for months to get revised salary hikes according to the Seventh Pay Commission report. The delay has been massive and the numbers, in terms of money too are big. The amount has not been distributed and here’s what the government has been able to save – delay in revised allowances distribution has saved Rs 2,200 crore per month or Rs 40,000 crore cumulatively since January 1 last year. However the Centre may compensate the delay to some extent by offering more generous HRA than recommended by the committee earlier, sources said.
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The Ashok Lavasa-led committee on allowances, which the government had constituted to examine the CPC recommendations, had submitted its report on April 27 this year. It suggested changes in some allowances for employees as well as for those in specific categories, including defence and railways. It was later put before the empowered committee of secretaries led by the Cabinet secretary came up with proposals for clearance by the Cabinet.
Centre’s budgeted expenditure on allowances has been kept at Rs 69,222 crore in the FY18, without including defence. It is 7 percent higher than Rs 64,677 crore in FY17.
However, the government is also likely to spend Rs 21,980 crore extra on allowances in FY18, due to the revision that will take place in July.
The panel had suggested an overall 23.55 percent raise in pay, allowances and pensions, which include 63 percent increase in allowances 23.6 percent raise in pension and 6 percent pay hike.