7th CPC recommendations Report submitted Finance Minister Arun Jaitley

DELHI. The Committee on Allowances, constituted by the Ministry of Finance to examine the 7th CPC recommendations on Allowances, submitted its Report to Arun Jaitley,

Finance Minister. The Committee was headed by Ashok

Lavasa, Finance Secretary and Secretary (Expenditure) and had Secretaries of

Home Affairs, Defence, Health & Family Welfare, Personnel & Training, Post and

Chairman, Railway Board as Members and Joint Secretary (Implementation Cell) as

Member Secretary. The Committee was set up in pursuance of the Cabinet decision on 29.06.2016 when approving the 7th CPC recommendations on pay, pensions and related issues were approved. The decision to set up the Committee was taken in view of

significant changes recommended by the 7th CPC in the allowances structure and a

large number of representations received in this regard from various Staff

Associations as well as the apprehensions conveyed by various Ministries /

Departments. The 7th CPC had recommended that of a total of 196 Allowances, 52

be abolished altogether and 36 be abolished as separate identities by subsuming

them in another allowance.

The Committee took note of all the representations received from various

stakeholders on the 7th CPC recommendations on Allowances. Representations and

demands for modifications were received in respect of 79 allowances which have

been examined in detail by the Committee. In doing so, the Committee interacted

with all the members of the Standing Committee of National Council (Staff Side),

Joint Consultative Machinery (JCM) as well the representatives of various Staff

Associations of Railways, Postal employees, Doctors, Nurses, and Department of

Atomic Energy. It also interacted with the representatives of the Defence Forces,

DGs of Central Armed Police Forces (CAPFs) namely CRPF, CISF, BSF, ITBP,

SSB, and Assam Rifles as also senior officers from IB and SPG to understand the

viewpoint of their personnel. As mentioned in the Report, the Committee held a total

of 15 meetings and was assisted by a Group of Officers headed by Additional

Secretary (D/o Expenditure) in examining the representations.

Based on such extensive stakeholder consultations and detailed examination, the

Committee has suggested certain modifications in the 7th CPC recommendations so

as to address the concerns of the stakeholders in the context of the rationale behind

the recommendations of the 7th CPC as well as other administrative exigencies.

Modifications have been suggested in some allowances which are applicable

universally to all employees as well as certain other allowances which apply to

specific employee categories such as Railwaymen, Postal employees, Scientists,

Defence Forces personnel, Doctors, Nurses etc.

before the Empowered Committee of Secretaries (E-CoS) set up to screen the 7th

CPC recommendations and to firm up the proposal for approval of the Cabinet. It

may be recalled that while recommendations of the 7th CPC on pay and pension

were implemented with the approval of Cabinet, allowances continue to be paid at

old rates. After consideration by the E-CoS, the proposal for implementation of 7

th CPC recommendations on Allowances after incorporating the modifications

suggested by the Committee on Allowances in its Report shall be placed before the

Cabinet for approval.