7th Pay Commission: Payment of arrears with current month salary; committee on allowances to meet this week

Zee Media Bureau/Ajeet Kumar

New Delhi: The first meeting of the Finance Secretary-led committee appointed to look into the allowances recommended by the 7th Pay Commission is scheduled this week while the payment of arrears will be paid to central government employees and pensioners in a single installment along with this month salary.

IANS has reported quoting Finance Secretary Ashok Lavasa that the committee on allowances will have its first meeting this week.

The  Committee  will  submit its  report  within  a  period  of  four  months. Till  a  final  decision  on  allowances  is  taken  based  on  the  recommendations  of  this  Committee,  all allowances will continue to be paid at existing rates in existing pay structure, as if the pay had not been revised with effect from 1st day of January, 2016.

"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," as per the press release issued by the government after the Cabinet approval to Pay Commission recommendations.

Government has already decided to pay its employees arrears arising from implementation of the 7th Pay Commission recommendations in one go in August salaries.

"The arrears as accruing on account of revised pay consequent upon fixation of pay under CCS (RP) Rules, 2016 with effect from January 1, 2016, shall be paid in cash in one installment along with the payment of salary for the month of August, 2016, after making necessary adjustment on account of GPF and NPS, as applicable, in view of the revised pay," a finance ministry statement said.

The government has also notified the 2.57-time hike in basic salary of one crore government employees and pensioners as per the 7th Pay Commission recommendations. The pay hike has been made effective from January 1, 2016.

It was estimated by the Pay Commission that the additional financial impact on the exchequer due to the implementation of all its recommendations in 2016-17 will be Rs 102,100 crore. This apart, it had estimated an additional implication of Rs 12,133 crore on account of arrears.

With Agency Inputs