New Delhi, May 20: The Empowered Committee of Secretaries are expected to present the report to the Union Cabinet next week and according to multiple news reports, the 7th Pay Commission updates related to revised allowance structure for the central government employees is likely to be announced latest by May 26. The restructured allowances are likely to benefit about 47 lakh central government employees.
Last month on April 28, the Lavasa Committee had suggested modifications in some allowances applicable universally to all employees to all employees and also for those in specific categories, including railways and defence. The report was after examining te 7th Pay Commission recommendations.
The Committee on Allowance – headed by Finance Secretary Ashok Lavasa, and constituted by the Ministry of Finance to examine the 7th Pay Commission recommendations on allowances – had submitted its report to last week and right now the report is examined by the Department of Expenditure. The 7th pay Commission had recommended that of a total of 196 allowances 52 must be abolished altogether and 36 must be abolished as separate identities by subsuming them in another allowance. Also Read – 7th Pay Commission: Decision on revised allowances for Central Govt employees next week says union official
The Ashok Lavasa committee took a note of all the representations received from various stakeholders on the 7th Pay Commission recommendations on allowances. Based on extensive consultations and detailed examination, the Committee had suggested certain modifications in the 7th Pay Commission recommendations.
The committee has suggested modifications in some allowances which are applicable universally to all employees as well as certain other allowances which apply to specific employee categories such as railway men, postal employees, scientists, doctors, defence forces personnel and nurses etc.
The report examined by the Department of Expenditure, Ministry of Finance, was scheduled to be placed before the Empowered Committee of Secretaries (E-CoS) set up to screen the 7th Pay Commission recommendations and to firm up the proposal for the approval of the Cabinet.
In April, the Union Cabinet had cleared all important recommendations and proposals related to modifications in the 7th Pay Commission (Central Pay Commission) recommendations on pay and pension benefits in the course of their implementation.
The proposal of these modifications will come into effect from January 1, 2016. According to a rough figure, the enhanced annual pension bill alone is likely to be around Rs 1,76,071 crore.