New Delhi, August 5: Almost a month after Union Cabinet accepted some of the recommendations of higher allowances under the 7th Pay Commission, the National Joint Council of Action (NJCA) has written to the Cabinet Secretary, seeking roll-out of arrears on allowances from July 1, 2016. The Union Government had decided to pay the arrears on allowances from July 1, 2017, and by this decision, some reports suggest that the government had saved around Rs 40,000 crore. Also Read - 7th Pay Commission Latest News: Central Govt Employees Likely To Get Salary Hike This Month
“If Centre cannot provide us arrears from January 1, 2016, which was the scheduled date of 7th Pay Commission roll-out, it should at least provide us with arrears from 1st of July last year, when the Cabinet gave in-principal approval,” NJCA convenor Shiv Gopal Mishra said while talking to India.com. Also Read - 7th Pay Commission Latest News: Ahead of Diwali, Maharashtra Govt Announces Rs 2000 Allowance For Anganwadi Workers
On Saturday, the NJCA chief who has been leading the negotiations with the Centre said the Reserve Bank of India erred while listing the roll-out of HRA and other allowances as one of the potential contributors towards inflation. Also Read – 7th Pay Commission Impact on Inflation: Employee Forum Says RBI Erred as Arrears Are Not Provided on HRA, Allowances Also Read - 7th Pay Commission Latest News: Ahead of Diwali, Tami Nadu Govt Announces Bonus For Over 2.91 Lakh Employees
Reserve Bank of India stated in its third bi-monthly monetary policy that the possibility of inflation receiving an impetus due to the roll-out of HRA as per the 7th Pay Commission. The policy report projects the inflation for Q3 and Q4 and 4.4 per cent respectively, higher than 3.5 and 4 per cent projected in the report released in June.
The report released by RBI on Wednesday stated, “As base effects fade, the evolving momentum of inflation would be determined by the impact on the CPI of the implementation of house rent allowances (HRA) under the 7th central pay commission (CPC).”
The report also listed the roll-out of GST as another major potential contributor towards inflation. NJCA convenor, Shiv Gopal Mishra said that the assessment of RBI is flawed in relation to 7th Pay Commission.
“I don’t agree with them. It is absolutely wrong. There is no question of HRA and other allowances impacting inflation because they have been rolled-out in a staggering manner. With no arrears on allowances, there would be no impact at all,” Mishra said while speaking to India.com.
Mishra who has taken up the caused since last two years said that the Centre would have provided arrears on allowances, pending since January 1, 2016, then the assessment of RBI would have made sense.