HomeSeventh Pay CommissionAllowances

7th Pay Commission: Revised allowances to come into effect only after March 2017

7th Pay Commission: Revised allowances for central govt employees to come into effect only after March 2017


New Delhi: Central government employees have been demanding a better monthly pay package under the 7th Pay Commission, and demanding reinstatement of all the allowances abolished or subsumed by the pay panel.

The government, even set up a committee in July under Finance Secretary Ashok Lavasa to look into the Allowances related grievances of central government employees. Though the committee was to submit its report within 4 months, it is yet to come out with its report.
Now, the committee has received extension up to February 22 to submit its report.
Even, considering the statements made by the RBI governor Urjit Patel in the last bimonthly monetary policy announced on December 7, it seems that higher allowances, if at all, will not come before March 2017 i.e. the next financial year.
As the RBI Governor said that disbursement of salaries and arrears under 7th Pay Commission award has not been disruptive to inflation outcomes, he added that the extension of two months given to the Ministry of Finance to receive the notification on higher allowances under the Pay Commission’s award, could push it’s fuller effect into the next financial year, rather than this financial year.

Read on [Zee News##eye##]


  • The Vth CPC recommended the fiment benefit of 40% of existing pay or one increment in the revised scale for every three increments in the pre-revised scale in addition to first and second instalment of Interim Relief drawn. The VIth CPC recommended 40 % fitment benefit in the form of Grade Pay. While the facts are as such, how the author justifies that 32 % increasee in basic pay recommended by the VIIth CPC better than ealier pay commissions recommendations. Regarding Dearness Relief, the quantum has been reduced after VIIth CPC recommendations.For example, for a basic pay of Rs.10,000 one is entitled to Rs.700 as addiional D.A.(7% of basic pay) wef.1.7.2016 in the VIth CPC scale. After revision of pay of Rs.10,000 to 25700 (2.57 times of existing basic pay as per VIth CPC) in the VIIth CPC scale, the increase in D.A. will be only Rs.514 (2 % of pay in the VIIth CPC scale) w.e.f.1.7.2016