7th Pay Commission: How Jaitley saved Crores of Rupees this Financial
year.
It has been more than six months since the Narendra Modi government cleared the
recommendations of the 7th Pay Commission
Government
employees are, however, yet to enjoy the full benefits of the
recommendations with the decision on allowances still to be announced.
The
7th pay commission recommendations cover more than one crore government
employees and pensioners. The commission recommended a 14.27 per cent
hike in basic pay.
HOW MR. ARUN JAITLEY SAVED CRORES FOR THE GOVERNMENT:
1.
The hike in basic pay has resulted in a marginal increase in the total
salary drawn by government employees. This is because allowances form a
sizeable chunk of their pay.
2. Till date, the government has not
made announcements on when exactly does it plan to start giving out the
allowances to its employees.
3. The government had asked the
Committee on Allowances headed by Finance Secretary Ashok Lavasa to
review the recommendations of the 7th Pay Commission on allowances.
4.
The government has given the committee an extension up to February 22,
2017 to submit its report on higher allowances. In October last year,
Finance Secretary Ashok Lavasa had said the committee was ready with its
report.
However, no extension of period was asked by the
committee, but still the government delayed the implementation by this
extension.
5. The government’s dilly-dally on allowances has
largely been attributed to demonetisation and the Assembly elections in
five states. The 7th Pay Commission has recommended scrapping 53 of the
196 allowances, and merging a few others.
6. The hiked salary, as
per the recommendations of the pay commission, is given in two parts.
The increase in the basic salary is calculated from the time the
government implements the recommendations of the commission, i.e. on a
back date basis. As a result, employees are eligible for arrears on
their basic pay.
7. The increase in allowances, however, is
applicable from the date the government decides to disburse it.
Therefore, government employees are not entitled to arrears.
8.
Usually, once the recommendations of the pay commission are approved,
the increase in basic pay is followed by an increase in allowances.
9.
It is widely believed that the government will decide on a hike in
allowances once the Assembly elections are over. In other words,
employees can expect to get allowances from April, which marks the
beginning of the new financial year.
So, finally the government
has acted smart, the government has effectively saved a lot of money
this financial year by not making an announcement on allowances.
Government employees, on the other hand, have expressed their
disappointment over being denied the full remuneration for a long time,
but who cares about it!
Source:
India Today