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UP govt scraps 7 allowances for staff, to save Rs 1,500 cr yearly

The government expects to save at least Rs 1,500 crore a year through the move.

Written by Maulshree Seth | Lucknow | Published: May 13, 2020 9:11:46 am
Uttar Pradesh lockdown, Uttar Pradesh  coronavirus, uttar pradesh Uttar Pradesh  cases, india lockdown Earlier, the government had decided to suspend these allowances till March 31, 2021, in a decision taken along with freezing of dearness allowance and dearness relief for its employees as well as pensioners.

Facing financial constraints owing to the lockdown, the state government on Tuesday decided to scrap seven allowances given to its employees, including the police force. The government expects to save at least Rs 1,500 crore a year through the move.

Earlier, the government had decided to freeze these allowances for nearly a year but later during a review it was noticed that these allowances were being given over and above the 7th pay commission’s recommendations and thus, as per a notification issued by the State Finance Department on Tuesday, all these allowances have been “abolished” altogether.

These include city compensatory allowance, secretarial allowance, special allowance to those posted in the police department’s crime branch, CBCID, Anti-corruption organisation, Economic Crime Research Department, Vigilance Establishment, Special Investigation Branch etc. It also includes incentive allowance for employees for promotion of governance, allowance given to record keepers of provident fund, research allowance and design allowance for officers and employees of Public Works Department etc as well as I&P allowance given to irrigation officers.

Earlier, the government had decided to suspend these allowances till March 31, 2021, in a decision taken along with freezing of dearness allowance and dearness relief for its employees as well as pensioners. There are nearly 16 lakh employees in the state.

A senior officer in the finance department said, “These allowances were being given over and above the 7th pay commission and were not even being given to Central Secretarial employees.”

The officer added that incentives such as e-governance were introduced a few years ago to ensure that employees take an interest in such newly introduced methods. Over the years, employees have become comfortable with the system and there is hardly any need for such allowance.

The government also maintained that unlike other states, the UP government has not deducted salaries of its employees.

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