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7th Pay Commission Soon to Restructure Allowances: Union Cabinet

Ritam Dutta
19 Jun 2017
Read Time : 8 Mins
7th Pay Commission Soon to Restructure Allowances: Union Cabinet

The much awaited 7th pay commission-related allowances (including HRA or house rent allowance) has been finalised by the Empowered Committee of Secretaries send proposals for consideration of the Union Cabinet, a senior employee union leader told NDTV recently.

The Cabinet did not take up the 7th pay commission allowances in the earlier meeting as it was not part of the agenda, sources told NDTV. The union leader, citing sources, said that the Cabinet could take up the matter at the earliest. The Empowered Committee of Secretaries met on June 1 to screen the report on 7th pay commission allowances (including HRA) to prepare proposals for consideration by the government, the union leader said.

The Ashok Lavasa committee, which examined the 7th pay commission’s recommendations on allowances, submitted its report to the finance minister on 27th April, 2017. The committee was headed by Finance Secretary Ashok Lavasa and had Secretaries of Home Affairs, Defence, Health & Family Welfare, Personnel & Training, Post and Chairman, Railway Board as Members and Joint Secretary (Implementation Cell) as Member Secretary.

Some modifications suggested by the Lavasa committee in few allowances that are applicable universally to all employees as well as certain other allowances which apply to specific employee categories, the finance ministry said in a statement. The 7th pay commission had recommended that house rent allowance be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay, depending on the type of city. The 7th pay commission had also recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent when DA or dearness allowance crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when it crosses 100 per cent. With regard to allowances, employee unions have demanded HRA at the rate of 30 per cent, 20 per cent and 10 per cent.

The 7th pay commission had recommended that of a total of 196 allowances, 52 be abolished altogether and 36 be abolished as separate identities by subsuming them in another allowance. The Cabinet had earlier approved modification in recommendations of the 7th pay commission relating to the method of revision of pension of pre-2016 pensioners and family pensioners based on recommendations of a high-level panel.

Source: ndtv