7th Pay Commission: Cabinet may decide on revised Allowances (HRA) Tomorrow

7th Pay Commission: Narendra Modi-led cabinet may decide on revised allowances for govt employees tomorrow

Central government employees, on several occasions, have expressed their disappointment over the long delay in rolling in out revised allowances.

The Narendra Modi-led cabinet is likely to meet tomorrow and is expected to take a decision on revised allowances under the Seventh Pay Commission.

According to reports, Finance Minister Arun Jaitley is likely to table the proposal for the revised allowance structure at the Cabinet meet--the move will benefit nearly 50 lakh Central government employees.

The Union cabinet could not take the subject of allowances in its last meeting on June 7.

Central government employees, on several occasions, have expressed their disappointment over the long delay in rolling in out revised allowances.


  • If reports are to be believed, Central government employees are likely to start getting revised allowances under the Seventh Pay Commission from July.
  • The Central government, however, may not be keen on giving arrears on allowances, a demand repeatedly raised by employees. According to some reports, employee unions have planned protests if the demand of arrears on allowances is not met.
  • The Seventh Pay Commission recommended axing 53 of the 196 allowances that Central government employees get besides merging 36 smaller allowances into bigger ones.
  • The pay commission also suggested bringing down the House Rent Allowance (HRA) rates for Central government employees by varying degrees depending on the type of city. For instance, the pay commission recommended reducing the HRA for Metros from 30 per cent to 24 per cent.
  • The axing of allowances, and a slash in HRA rates by the Seventh Pay Commission did not go down well with Central government employees.
  • A Committee on Allowances was formed under Finance Secretary Ashok Lavasa to review the recommendations of the Seventh Pay Commission in July last year. The Lavasa panel submitted its report to Arun Jaitley on April 27 after missing two deadlines.
  • "Modifications have been suggested in some allowances which are applicable universally to all Central government employees as well as certain other allowances which apply to specific employee categories," a Finance Ministry statement said a day after Lavasa panel submitted its report.
  • The Ashok Lavasa report was sent to the Department of Expenditure for a first round of review before being placed before the Empowered Committee of Secretaries (E-CoS) for another round of screening.
  • Representatives of Central government employees wrote to Cabinet Secretary P K Sinha and said that employees were clueless about the recommendations of the Ashok Lavasa Committee on Allowances. They also expressed anguish over inordinate delay in implementation of the Lavasa panel's report.
  • After screening the Ashok Lavasa report on allowances, the Empowered Committee of Secretaries (E-CoS) forwarded the report along with its suggestions to the government after a June 1 meeting. Central government employees are now waiting for the good news on allowances.
Source:- http://indiatoday.intoday.in/


Post a comment

Latest Posts

Get More