Revised rates of Allowances can be included in 7th Pay Commission Arrears calculation?
The Central Government employees know the fact from their past experience that the Allowances will not be given retrospective effect whenever it is got implemented. In Previous Pay Commissions, the increased amount in Allowances like HRA and TA will not be added in the Arrears because all the revised rates of Allowances are paid with effect from the date of Notification issued.
If the Notification issued on 1st July 2016, it is not sure whether the government will implement the revised rate of Allowance from January 2016. The Central Staffs will be at loss of six Months Arrears in respect of revised rates of Allowances if it is implemented with effect from the date of issue of Notification. Difference in the Basic Pay alone will be paid as Arrears. Finally, the period of delay in issuing Notification will make the CG Employees lose their increased amount in Allowance for that particular period.
It is upto the bargaining power of Government and Federations that decides the effective date for payment of Revised Allowances
It is therefore, now the expectation of central government employees focused especially on date of Notification and amount of Arrears they will be getting after the implementation of 7th pay commission. They now started calculating the 7th pay commission arrears. Until now it is not clear that when will the notification be issued for implementation of pay panel report.