Yogi Adityanath government scraps these allowances of UP government employees to save Rs 1,500 cr/year

In a major development, the Yogi Adityanath government in Uttar Pradesh has scrapped all six allowances. Earlier, payment of six categories of allowances to its employees and teachers were deferred for one year. The government also scrapped some other allowances, including the one paid for promotion of e-governance in all the departments of the secretariat. A decision to scrap these allowances was taken by the state cabinet and sent circular on Monday, formal orders were issued on Tuesday.

According to a report by news agency IANS, Additional Chief Secretary Finance, Sanjiv Mittal, said, "A review of the allowances stopped, or not existing at the Centre and permissible in the state, was carried out following decline in state government's revenue in view of the Corona pandemic."  The official has issued four separate orders scrapping the allowances, including one paid for the maintenance of provident fund accounts. The government aims to save an additional sum of Rs 1,500 crore per annum by scrapping these allowances.

It had earlier decided to freeze the dearness allowance and dearness relief (DA/DR) paid to its employees, teachers and pensioners from January 1, 2020 to June 30, 2021. This will save Rs 10,500 crore in 2020-2021.

Mittal said, "Under prevailing circumstances, there appears no justification for payment of promotional allowance to two officers of joint secretary and special secretary rank for development of e-governance in all departments of the secretariat." "The state government is committed for parity with central government in payment of salaries and allowances to its employees and teachers," he stated.

Other allowances scrapped include city compensatory allowance (CCA), secretariat allowance, special allowance given to CB-CID, anti-corruption organization, economic offences wing, vigilance establishment, security and special investigation wing, special allowance paid to junior engineers in all the departments, research allowance, orderly allowance and design allowance paid in the public works department along with investigation and planning and orderly allowance paid to officers and employees working with the irrigation department.