Delay in 7th CPC Allowances: Is any compensation on the way

Committee on Allowances has concluded his exercise as the last meeting was held on 6th April, 2017 and the confirmation of the submission of report to Govt. has not yet available from authentic sources. Cabinet Secretary has already assured to JCM that he will put-up the report to the Cabinet for early approval. There is an indication that govt is considering for compensation to Central Government Employees for inordinate delay of implementation of the allowances as per recommendation of Seventh Central Pay Commission. 

7th-cpc-news-on-compensation

Paramnews,com team has decoded that the Government is planning to make the announcement for a Compensation on Allowances in lieu of delay in allowances recommended by the 7th Pay Commission. There are so many questions here and also have been analyzed to judge you on this matter.

When the allowances at the new rates will be implemented?

According to the earlier posts of paramnews.com the Cabinet to adjudge on 7th CPC revised allowances before April 23 [click to view] and the other hand the RBI is not in the mood to outlaw the govt to implement the revised allowances. Read the full article RBI is not against the HRA hike as per 7th CPC HRA; Analysis

What is the crucial date of effect of allowances at the rate recommended by 7th Pay Commission and the committee of allowances?

Answer of this question is factual under two sides, first the demand of employees and the second the way of implementation of 7th CPC. The employees and their union are pressing hard on the implementation of revised allowances from the date of implementation of 7th CPC i.e. 01.01.2016. Whether the demand of employees union is illegitimate? Not fully, in view of the timing of constitution of the 7th CPC. The unions are blaming to the committee and the government for the delay. 
The delay in implementation of 7th CPC was not from the employees side.

The constitution of the 7th CPC was notified vide the resolution dated 28th of February 2014 under the Chairmanship of Justice Shri Ashok Kumar Mathur, Shri Vivek Rae as full time member and Smt. Meena Aggarwal as Secretary, with the condition to give the report in 18 months. As per initial notification the report was to be submitted in the month of August 2015, but the commission got the extra 3 months for submission of report and finally the commission handed over the report to govt on Nov, 2015 after 3 months. Although, two to four months were enough to complete the other formality for implementation by implementation cell of finance ministry, but govt handed over the all exercise to a empowered committee. Lastly the govt has approved some recommendation of the 7th CPC for implementation to Central Government Employees on 25th July, 2016 after 8 months of receiving of report and the employees was entitled to get the arrears of revised basic pay from 01.01.2016 and new salary from the month of August, 2016. 
What will be the effective date of revised allowance from 01.01.2016 or 01.08.2016 or the month after the approval of report of allowances committee?

As the employees union are demanding the effective date of allowances from 01.01.2016, is seems hard to be accepted by the govt. We knows the allowance in 6th CPC and previous CPCs were also not implemented retrospectively as the revised basic pay means the allowances were given from the date of approval/implementation of revised pay as per respective CPC. Hence it is easily interpreted that the revised allowances will not be given from the date of revision of Basic Pay in 7th CPC i.e. 01.01.2016. Now the question arise here, what about the date of approval/implementation of 7th CPC to Central Government Employee by the Govt. Perhaps, the date can be 01st August, 2016. The all the facts says that the employees are eligible to get the revised/enhanced allowances from the date of approval of the 7th CPC as the withheld decision in the formulation of a committee by fully from the Govt. side. As the employee unions were objected on many issues like minimum pay, advances, allowances etc. but govt delayed only the allowances.

Whether govt will revised the allowances with retrospective effect?

To find the answer of the above question, the pay and allowances as per the 7th CPC norms should be analyzed as a summary. Here the lowest pay scale is taken to understand the difference between 6th CPC & 7th CPC Pay:-

The lowest Pay Scale was in the 6th CPC = PB 1 (5200-20200) & Grade Pay 1800

The employee in this scale was getting the following prior the 7th CPC on 01.01.2016 -
Basic Pay: Rs. 5200 + Grade Pay 1800 = Rs. 7000 
(The pay for newly appointee was differ)
  • DA on 01.01.2016 = Rs. 8330
  • For X Group City 
  • HRA - 2100 
  • Tpt All - 600 + 714 = Rs. 1314
  • Total Gross Salary = 17430
The employee in this scale was eligible in the 7th CPC with effect from 01.01.2016 -
  • Basic Pay = Rs. 18000
  • HRA = Rs. 4320 and Tpt = 1350 
Now 
  • Difference in Basic Pay is Rs. 2670
  • Difference in Allowance (HRA only) is Rs. Rs.2220
As per above illustration the difference of revised basic pay and revised allowance (HRA) is nearly 85%. Means govt has saved 85% corpus of expenditure in enhancement of pay and allowances of Central Government Employee by delaying the approval of allowances. By this central government employees was loosing this amount since August, 2016. Hence it is also instituted that Govt employees are eligible for a compensation in situation of not getting the revised allowance from the date of implementation of 7th CPC i.e. August, 2016.

Union demand of revised allowance from 01.01.2016 may be persuaded by the compensation

As per sources indicated that the Committee to check the 7th CPC recommendation on allowances has given the importance the union demand to give the enhanced allowances from the date of 01.01.2016. A positive note given by the committee as per suggestion to the govt. to compensate the employees for the delay in decision regarding allowances. The sources has also indicated that the compensation will be given as monthly rate from Jan, 2016 or August, 2016 upto the date of approval/decision given by govt on revised allowances. 

Conclusion: It is the matter of future that what, how much and when the revised allowances will be given to the Govt. employees? But it is fact that employees are eligible for the revised allowances from the August, 2016 and either the allowances must be given retrospectively or as compensation. Which type of days will coming to the Central Government Employees after a loss of revised allowances for 9 months and how the govt makes it as "Achhe Din" to their Govt employees or govt is following their logo "Sabka Saath Sabka Vikaas".

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Param News: Central Government Employee News|Latest DOPT OM: Delay in 7th CPC Allowances: Is any compensation on the way
Delay in 7th CPC Allowances: Is any compensation on the way
Sources close to Senior Finance Ministry, stated that the government is expected to make the announcement as a compensation amount in different category will be given. This amount is specially considered for those who are drawing HRA. As per sources the maximum recommended amount is Rs. 800 per month.
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Param News: Central Government Employee News|Latest DOPT OM
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