7th Pay Commission: Higher Allowances from July; HRA to be kept at 27 per cent; final decision likely on June 28

7th Pay Commission: Higher Allowances from July; HRA to be kept at 27 per cent; final decision likely on June 28

The matters related to higher allowance, under the 7th Pay Commission, is likely to be taken up by the Union Cabinet in next meeting on June 28.

New Delhi, June 20: Prime Minister Narendra Modi Union Finance Minister Arun Jaitley reportedly held a crucial meet to discuss higher allowances for the central government employees, under the 7th Pay Commission. If media reports are to be believed, the central government employees will receive higher allowances as per the 7th Pay Commission from July. The house rent allowance or HRA under the 7th Pay Commission would be kept at 27 per cent of the basic pay. HRA accounts for about 60 per cent of the total allowances bill.

The central government employees are most likely to get higher allowances, under the 7th Pay Commission, from July. The matters related to higher allowance, under the 7th Pay Commission, is likely to be taken up by the Union Cabinet in next meeting on June 28. Shiv Gopal Mishra, chief of the National Joint Council of Action (NJCA), leading the 7th Pay Commission negotiations with the government, also said the government would take final call on higher allowances by the end of June.

Sources in the Finance Ministry had said that the quantum of allowances may not vary from those proposed by the 7th Pay Commission and the government is not bound by the findings of the Empowered Committee of Secretaries, which anyway didn’t suggest any hike. While the central government employees have been receiving their revised salaries as per the 7th Pay Commission, revised higher allowances haven’t been paid since July last year.

The government is likely to keep the HRA in cities with population above 5 million at 27 per cent of the basic pay. The 7th Pay Commission has suggested to keep the HRA rate at 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively. However, the central government employees demanded to retain HRA rate at 30 percent, 20 percent and 10 percent of Basic pay. Mishra also said that there is a possibility of higher HRA than that recommended by the 7th Pay Commission.

The 7th Pay Commission had recommended a 14.27 per cent hike in basic pay for Central government employees, which is the lowest in 70 years, and suggested the abolition of 52 out of the 196 existing allowances, apart from subsuming 36 smaller allowances. The Ashok Lavasa committee, which examined the 7th Pay Commission‘s recommendations on allowances, submitted its report to the Finance Minister Arun Jaitley on April 27. An Empowered Committee of Secretaries (E-CoS) was set up to screen the report and firm up proposals for the Cabinet. The E-CoS has also submitted its proposals to the Cabinet.

Source:- http://www.india.com

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