“Government employees, who
pay regular taxes for up to the last Rupee that they earn as salaries
and bonuses, are the ones who were most affected – directly and
indirectly – by demonetization.”
As part of its proclaimed drive to eradicate black money, counterfeit
notes, and terrorism, the Government, on November 8, announced the
abolishing of Rs. 500 and 1000 notes. The acute shortage of cash, that
began on November 9, continues until this day. The masses are faced with
hardship in one form or the other – medical expenses, marriages, house
construction, outstation and foreign travels, celebrations, last rites,
school fees, and everyday expenses… An advance of Rs. 10,000 as cash was
given from the salary for the month of November only.
News sources claim that the Ministry of Finance and officials of all
departments are working hard to streamline the announcement and handle
its after effects.
The Central Government, which has implemented only the hike in the basic
pay, as recommended by the Seventh Pay Commission and has been giving
it with effect from January 1, 2016 onwards and has constituted a
high-level special committee under the chairmanship of Finance Secretary
Ashok Lavasa, to look into the recommendations regarding various
allowances.
The meeting of the high-level committee must be constituted in order to
decide on important allowances being given to the Central Government
employees, including House Rent Allowance. Although sources claim that
seven such meetings had been held until now, no decision has been
reached yet.
The Seventh Pay Commission had compiled its entire report within 18
months. Four months have passed, but the committee has not been able to
make its mind up about one aspect of it, the allowances. This has caused
tremendous irritation and frustration among Central Government
employees.
Confusions and hurdles continue to plague in constituting the meeting of
the high-level committee, which must decide on the issue of allowances
to the Railways, Postal, defence, and armed forces. This can be deduced
from the recent letter that the Secretary of National Council (JCM) had
written to the Central Government. The most recent high-level committee
meeting with the NC JCM Staff Side was held on September 1, last year.
The Seventh Pay Commission had listed 196 kinds of allowances (51
allowances have been recommended to delete from the list). It must be
mentioned here that, of these, the committee was constituted to look
into all the allowances, except the dearness allowance. No decisions
have been made yet on any of the allowances. In fact, there is no
official information on the next meeting date.
