Uttar Pradesh govt. abolishes allowances affecting 16 lakh employees

The scrapping of these allowances will save the government Rs 1,500 a year.

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While the Uttar Pradesh government has not cut the salaries of its employees, it has decided to scrap seven of their allowances, instead. Financial constraints due to the lockdown have forced the state government to opt for the move on May 13. The decision, which will affect 16 lakh employees in the state, will save the government about Rs 1,500 crore a year.

The allowances that have been cut, include secretariat allowance to the state’s employees, teachers and police departments; city compensation allowance and special allowance for under engineers; special pay allowance granted to officers and employees posted at the Crime Branch of Police Department, Crime Research Department (CBCID), Anti-Corruption Organisation, Economic Crime Research Department, Vigilance Establishment, Information Department, Security Branch and Special Investigation Branch; research allowance for officers and employees of the Public Works Department; orderly allowance and design allowance; investigation, planning and orderly allowance to officers and employees posted in the Irrigation Department; and allowances for record keepers of government provident fund.

However, this was not the initial plan. The state had earlier decided to only suspend these allowances till March 31, 2021 along with freezing dearness allowances and dearness relief for current and former employees. Later, it was discovered after a review that these were being paid over and above the recommendations under the 7th Pay Commission. The State Finance Department immediately issued a notice to abolish these allowances altogether.