With the 7th Pay Commission recommendations being approved by the Cabinet, the Finance Ministry has decided to stop payment on account of discontinued allowances.
The Cabinet had accepted the recommendations of the pay commission on allowances with 34 modifications. The same was published in the Gazette of India on July 6 2017.
Finance ministry order
"In this regard, attention is drawn to Para 8.2.5 of the Report of the 7th CPC wherein it has been mentioned that any allowance, not mentioned in the Report (and hence not reported to the Commission), shall cease to exist immediately. In case there is any demand or requirement for continuation of an existing allowance which has not been deliberated upon or covered in this report, it should be re-notified by the Ministry concerned after obtaining due approval of Ministry of Finance and should be put in the public domain."
Disbursement of allowances
"As the recommendations of the 7th CPC on allowances have come into effect from 1st July, 2017, disbursement of all existing allowances which have not been specifically recommended for continuation in terms of the Resolution dated 6th July, 2017 shall be discontinued from the salary of the month of July, 2017."
Order not applicable
"In view of the nature of the Allowances specific to Ministry of External Affairs, these allowances were not covered by the 7th Central Pay Commission. Hence this order will not be applicable to allowances specific to Ministry of External Affairs."
No bills shall be drawn
"It shall be the responsibility of the Heads of the Department to ensure that no bills relating to disbursement in respect of such allowances is drawn by the Head of Office/Drawing Disbursing Officers under their purview/jurisdiction. Pay and Accounts Officers shall ensure that no payment is effected if any such bill relating to the disbursement of the discontinued allowances is submitted to them. If such bills are received, they should be returned to the DDO and intimation thereof shall also be given to the Head of the Department and the Chief Controller of Accounts."