New Delhi, Aug 12: This festive season for central government employees will come with an enhanced bonanza, as the government is set to upgrade and implement their allowances as per the recommendations of 7th Pay Commission. The High Level Committee formed by the Finance Ministry was provided time till November to analyse the various anomalies in allowance hike as recommended by the 7th Pay Commission. However, sources within the Finance Ministry have confirmed that the allowances will be fixed by the next month, and government would credit the salaries of government employees ahead of Dussehra.Also Read - 7th Pay Commission: House Rent Allowance Likely To Increase by 3% For Govt Employees Soon, But Here’s The Catch

The High Level Committee, comprising of Health, Defence and Home Secretaries, was formed after several employee unions protested against the radical changes in terms of allowances proposed by the Justice AK Mathur-led 7th Pay Commission panel. The committee has also been entrusted with the responsibility of analyzing the demand of National Joint Action Committee (NJAC) which wants the minimum salary be scaled upto Rs 26,000, rather than Rs 18,000, which has been currently proposed. Also Read - 7th Pay Commission: DA Hiked By 3 Per Cent In THIS State For Govt Employees. Complete Details here

As per the pay matrix of 6th Pay Commission, government employees were beneficiaries of a total of 196 allowances. However, the AK Mathur-led committee has abolished 51 allowances, and subsumed nearly 37 of them. Also Read - 7th Pay Commission: Centre Likely to Increase Basic Salary of Govt Employees to Rs 26,000 Before Assembly Polls

The 7th Pay Commission recommendations were accepted by Union Cabinet on June 29. Although, the basic salary was hiked by 14.3 per cent, the hike in allowances was withheld due to the various anomalies.

Meanwhile, the government employees would also be paid arrears in one-time installment through their salaries in the upcoming months. The arrears have been calculated from January 2016, as the 7th Pay Commission was set to be implemented from the date. It was delayed by six months since the government had formed the Empowered Committee of Secretaries headed by Cabinet Secretary P K Sinha to examine the recommendations of AK Mathur led CPC committee.