Implementation of Allowances w.e.f 1.1.2016: Govt Reply

Government of India
Ministry of Finance
Department Of Expenditure

RAJYA SABHA
UNSTARRED QUESTION NO.257

TO BE ANSWERED ON TUESDAY, THE 18TH JULY, 2017
ASHADHA 27, 1939 (SAKA)

IMPLEMENTATION OF RECOMMENDATIONS OF SEVENTH CPC
QUESTION

257 SHRI NEERAJ SHEKHAR:

Will the Minister of FINANCE be pleased to satate:

(a) whether Government has implemented the recommendations of Seventh CPC regarding allowances w.e.f. 1 July, 2017 instead of 1 January, 2016;

(b) if so, the reasons and rationale therefor;

(c) the reasons for denying allowances from 1st January 2016 or from the date of announcement for implementation of enhanced basic pay under 7th CPC and arrears thereof;

(d) whether Government will review it and implement enhanced allowances w.e.f. 1 January, 2016;

(e) if so, the details thereof; and

(f) if not, the reasons therefor along with the reasons for lowest hike in Pay Commission since last 70 years?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI ARJUN RAM MEGHWAL)

(a) to (c): As per the established practice relating to implementation of earlier Central Pay Commission’s recommendations on allowances, the recommendations of the Seventh Central Pay Commission (7th CPC) on allowances have been implemented prospectively with effect from 01.07.2017.

In view of significant departure from the existing provisions relating to allowances as recommended by the 7th CPC and representations received in this regard, recommendations of the 7th CPC on allowances were referred to a Committee by the Government. After taking into account the recommendations of the Committee on Allowances which submitted its Report on 27.04.2017, the recommendations were approved by the Government on 28.06.2017.

(d) to (f): There is no proposal for revision of the date of implementation of recommendation on allowances. The hike is based on the recommendation of the 7th CPC on allowances, which is commensurate with the rise in Dearness Allowance as has been mentioned by the 7th CPC at Para 8.2.5 (4) of its Report.

Source: Rajya Sabha