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Wednesday, 19 July 2017

7TH CPC ALLOWANCES: REASON FOR IMPLEMENTATION OF ALLOWANCES W.E.F. 01ST JULY, 2017 INSTEAD OF 01ST JANUARY, 2016 [WITHOUT ARREARS]: FIN MIN REPLY

7th CPC Allowances: Reason for Implementation of Allowances w.e.f. 01st July, 2017 instead of 01st January, 2016 [without Arrears]: Fin Min Reply

GOVERNMENT OF INDIA
MINISTRY OF FINANCE

RAJYA SABHA

QUESTION NO 257
ANSWERED ON 18.07.2017

Implementation of recommendations of Seventh CPC

257 Shri Neeraj Shekhar

Will the Minister of FINANCE be pleased to state :-

(a) whether Government has implemented the recommendations of Seventh CPC regarding allowances w.e.f. 1 July, 2017 instead of 1 January, 2016;

(b) if so, the reasons and rationale therefor;

(c) the reasons for denying allowances from 1 January 2016 or from the date of announcement for implementation of enhanced basic pay under 7th CPC and arrears thereof;

(d) whether Government will review it and implement enhanced allowances w.e.f. 1 January, 2016;

(e) if so, the details thereof; and

(f) if not, the reasons therefor along with the reasons for lowest hike in Pay Commission since last 70 years?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI ARJUN RAM MEGHWAL)

(a) to (c): As per the established practice relating to implementation of earlier Central Pay Commission’s recommendations on allowances, the recommendations of the Seventh Central Pay Commission (7th CPC) on allowances have been implemented prospectively with effect from 01.07.2017. 

In view of significant departure from the existing provisions relating to allowances as recommended by the 7th CPC and representations received in this regard, recommendations of the 7th CPC on allowances were referred to a Committee by the Government. After taking into account the recommendations of the Committee on Allowances which submitted its Report on 27.04.2017, the recommendations were approved by the Government on 28.06.2017. 

(d) to (f): There is no proposal for revision of the date of implementation of recommendation on allowances. The hike is based on the recommendation of the 7th CPC on allowances, which is commensurate with the rise in Dearness Allowance as has been mentioned by the 7th CPC at Para 8.2.5 (4) of its Report.

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