8th Pay Commission: These Allowances are Likely to be Abolished
As 8th Pay Commission is set be rolled out by the starting of the next year, there are speculations about few allowances which could be abolished under the official notification. Let us get a close-up view of allowances, currently included in the remuneration under 7th Pay Commission that can be done away with under the 8th Pay Commission for central government employees in India. Following the lead of the 7th Pay Commission, which did away with 52 allowances and consolidated 36 others to make the salary structure less complex, the 8th Pay Commission is likely to further rationalise allowances to usher in greater transparency and eliminate redundancy. The reformation is meant to simplify the salary framework and emphasise more on basic salary and dearness allowance (DA), which benefits employees’ pensions.
Entertainment Allowance
-Current status: Graded to government staff for entertainment expenses.
-Suggested change: Can be abolished or blended with Basic Pay or other allowances to avoid redundancy.
-Effect: Small impact on staff with small entertainment allowance claims.
Transport Allowance
-Current status: Is given to employees for transport cost reimbursement.
-Suggested change: Most probably to be eliminated or blended into the new HRA or basic pay to make travel costs rational.
-Change: Government likely to promote utilisation of public transport or other transport with lesser advantages.
Washing Allowance
-Present position: Provided to some classes of employees for uniform maintenance.
-Proposed modification: Likely to be withdrawn since uniform maintenance could be absorbed under other stipulations or by employees themselves.
-Impact: Involves a small number of employees in security and allied departments.
Cycle/Motorcycle Allowance
-Current status: Granted to employees who use personal two-wheelers for official work.
-Change suggested: Could be eliminated given contemporary commuting methods and inclusion in transport allowance.
-Effect: Probably minimal as most employees are not claiming this allowance today.
Special Compensatory Allowances
-Current status:: Given for adverse working environments or postings in distant places.
-Suggested change: Few of these allowances could be streamlined or consolidated to eliminate duplicatory benefits.
-Impact: Requires careful re-tuning to prevent adversity for employees working in difficult environments.
Conclusion and Future Outlook
-Nutshell: Elimination or consolidation of some allowances is intended to rationalise the government pay scales.
Employees must be ready for the changes and assess their remuneration in the new scheme. Let's hope it serves everyone to the best of its purpose and spirit. The final list and specifications will be made public with official notification of the 8th Pay Commission recommendations. Thank you!
