7th Pay Commission might grant various special allowances to Central Government employees states Finance Minister Arun Jaitley, that comes in action in February 2017 and be applied from the next fiscal year i.e. April 2017, it said further.
Following the announcement, Govt is quite in ambiguity about granting hike considering the lack in the currency due to demonetization.
The central government employees have been waiting for fatter allowance since July when the notification for the implementation of the 7th Pay Commission recommendations was issued.
Despite the demands from Central Government employees on the implementation of higher allowance by January 2016 itself, Union Government delayed the issuance till February or maybe further. However, No final decision has been taken so far.
“The committee on Allowances has finalized the proposal on the allowances but the government doesn’t need to it now. The government will decide to review all situation in respect of cash crunch and to look at it, the Finance Minister Arun Jaitley is looking at all situations to normalize cash crunch to receive a report on higher allowances,” a Finance Ministry official was quoted as saying by the Sen Times.
The 7th Pay Commission notification that was released in July stated the 14.27 per cent hike in basic pay at junior levels, which is the lowest in 70 years. The government is yet to take a final call on raising allowances.