For the millions of central workers, on Wednesday evening, there was a big good news. The cabinet approved the change in allowances of Central employees in their meeting. Finance Minister Arun Jaitley told reporters that the suggestions of the Seventh Pay Commission have been approved on the allowances of employees. These recommendations will be effective from July 1, 2017. With the approval of these recommendations, a total of 30,748.23 crores will be incurred on the public exchequer.
In addition to other allowances for central employees, the government’s decision on the issue of house rent allowance was waiting for nearly a year. On June 28 last year, the government decided to implement the recommendations of the Seventh Pay Commission. The government had announced the implementation of the recommendations of the Pay Commission from January 1, 2016. But, there were objections to employees on many issues. These included house rent allowance.
The government had constituted a committee for this. The committee submitted its report to the Finance Minister on 27th April. This report was sent to the committee of empowered secretaries on behalf of the Finance Ministry. Prior to the Seventh Pay Commission, the Central Staff was entitled to 196 types of allowances. However, the seventh pay commission had abolished a number of allowances or had mixed them. After this, only 55 allowances were left. All employees were uncomfortable with the end of many aliases.
Accordingly, House Rent Allowance
– In relation to house rent allowances, the commission split in the cities of X, Y, Z category.
For this, 24 percent, 16 and 8 percent of the basic salary was recommended.
– When the dearness allowance reaches 25 percent, it will be 27, 18 and 9 percent.
If dearness allowance will be 50 percent, then the house rent allowance will be 30, 20 and 10 percent.
Accounting for the following categories
Apart from this percentage, a separate category will also be fixed for the lower class employees, who will fix minimum house rent allowance. This category is – 5,400, 3,600 and 1,800 rupees (this will be minimal). After this, the allowance will be given according to the percentage which makes more.
The amount of ration will be given to the soldiers deployed in a peaceful area. Siachen Allowance which is higher, in place of 31,500, 42,500 will be given. Along with this, technical allowances have been restructured. Special allowance allowances have also been increased. The medical allowance of 500 rupees of pensioners has been doubled to Rs.1000.
Government approval for disinvestment of Air India
Jagaran Bureau, New Delhi The government has given the in-principle approval to disinvestment of the problematic Air India. This decision was taken at a Cabinet meeting chaired by Prime Minister Narendra Modi on Wednesday. Giving information about the decision, Finance Minister Arun Jaitley said that the government has accepted the proposal of Civil Aviation Ministry to disinvest on Air India. How will this work, how the disinvestment process will be completed, what will be the assets of Air India, hotels and loans will be considered by the committee constituted under the chairmanship of the Finance Minister.
At present, there is a total debt of about 52 thousand crores on Air India. Its accumulated loss is close to 48 thousand crore rupees. To bail it out, the UPA government announced in 2012 about a 10-year revival package of about 30 thousand crore rupees. But despite getting around Rs 24 thousand crores, it has improved just in its condition that it has now come into operating profit. Due to the reduction of ATF prices in 2015-16, it has an operating profit of 105 crores. However, due to accumulated losses and debt, there is no hope of full revival. This is the reason why the government has decided to disinvest its disinvestment.