Central Government Employees likely to get new allowances from January 2017

It is reported from sources in the Ministry of Finance that centre likely to start disbursing allowances at higher rate in the next calendar year.

It is learnt that due to demonetization and cash crunch, the process is delayed. It is likely to be paid from January 2017. 

Regarding date of effect, though the decision is yet to be taken but it is widely anticipated that fatter allowances will be effected from August 2016 and arrears to be paid in one go in January 2017.

As far as rate of allowances, the source added that the committee will stick to the pay commission recommendation. So the possibility to get something higher looks remote.

It is also reported that Govt. may consider only against abolishing of a few allowances as a populist measure.