7th Pay Commission: Finance Ministry gets extension of 2 months, may delay higher allowances notification

New Delhi, Dec 7:

The notification for the implementation of higher allowance, under the 7th Pay Commission recommendations, is likely to be issued after January 2017.
The Finance Ministry has got extension of two months to issue the higher allowances notification under 7th Pay Commission recommendations. It means the higher allowance notification, under the 7th Pay Commission recommendations, may get delayed till January next year.
The government intends to accept the report of ‘Committee on Allowances’ after December 30, deadline for depositing demonetised notes. The October-November month is the scheduled for issuing notification, but the Finance Ministry has got extension of two months because of the cash shortage following demonetisation drive.
The government doesn’t want to increase the burden of banks that has been witnessing cash crunch due to demonetisation of Rs 500 and Rs 1000 notes. The government hopes that situation will return to normal after December 30 and it will be able to pay higher allowances to its 4.8 million employees as per the recommendations of the 7th Pay Commission. “The October-November month is the scheduled for issuing notification for the Finance Ministry, but the time was extended by 2 months because the cash crunch on account of demonetisation, which is taking time to get normality,” a Finance Ministry official was quoted as saying by Sen Times. “Therefor, unless the banks can begin to function with a modicum of efficiency, the government will not issue notification on higher allowances to save demonetisation chaos,” he added. Sources in the Finance Ministry said the government is likely to issue higher allowances notification under the 7th Pay Commission recommendations from January next year, after the the cash crunch will ease.
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. Earlier we reported that the government is planning to pay higher allowances under the 7th Pay Commission from January, 2017.The ‘Committee on Allowances’, headed by Finance Secretary Ashok Lavasa, on fatter allowances under the 7th Pay Commission recommendations is ready with its report. However the massive cash crunch post demonetisation drive has compelled the Finance Ministry to keep in abeyance the enhanced allowances till things normalize. Allowances are now being paid to the central government employees according to the 6th Pay Commission recommendations.