7th Pay Commission: Committee on Allowances to submit report today, hike in HRA expected

7th Pay Commission: Committee on Allowances to submit report today, hike in HRA expected

The Committee on Allowance may suggest to raise HRA to 30 per cent of the basic pay as against the 24 per cent recommended by the 7th Pay Commission.

New Delhi, Feb 22: The Committee on Allowance, headed by Finance Secretary Ashok Lavasa, is expected to submit its report on fatter allowances inducing House Rent Allowance or HRA under the 7th Pay Commission recommendations to Finance Minister Arun Jaitley today (February 22). The Committee on Allowance may suggest to raise HRA to 30 per cent of the basic pay as against the 24 per cent recommended by the 7th Pay Commission. Speaking to India.com, National Joint Council of Action (NJCA) convenor Shiv Gopal Mishra also said the Committee on Allowance will submit report on February 22.

The 7th Pay Commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances, which triggered resentment among central government employees. Finance Minister Arun Jaitley formed the Committee on Allowance to look into the provision of allowances other than dearness allowance under the 7th Pay Commission recommendations. The panel was given extension till February 22, 2017, to submit its review of the 7th Pay Commission’s recommendations about allowances.

According to media reports, the Committee on Allowances is likely to recommend the HRA to 30 per cent of basic pay, employees staying in metro cities. The NJAC, on the other hand, is expecting hike in allowances and announcement regarding arrears on the allowances. “Let us see what comes out of the report. We are expecting the hike in allowances, as per our demands. We have to wait and see whether the government makes an announcement on arrears as well,” said NJAC convenor Shiv Gopal Mishra.

The major point of grievance among central government employees was the reduction in Housing Rent Allowance (HRA). As per the 6th Pay Commission report, the HRAs provided were 30 per cent, 20 per cent, 10 per cent for employees living in ‘X’, ‘Y’, ‘Z’ category towns/cities. However, the 7th Pay Commission report decreased the allowances to 24, 16 and 8 per cent of the basic pay.

Central government employees have also demanded government to provide arrears on the allowances. Since the date of implementation of 7th Pay Commission was fixed as January 1, 2016, employees have demanded the release of arrears on allowances as well. The government provided arrears on basic pay while hiking the salaries on July 1, indications have been made that no arrears would be released on allowances. The government is planning to pay higher allowances under the 7th Pay Commission from April 1, but it is unlikely to make any announcement about arrears.

Source:- India News

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