7th Pay Commission Allowances: Here Are Some Latest Developments

The 7th pay commission had recommended that house rent allowance or HRA 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 allowance committee report is being currently examined by the Department of Expenditure

An employee union leader said the Empowered Committee of Secretaries (E-CoS) may take 2-3 weeks to screen the allowance committee report on 7th pay commission recommendations. The Empowered Committee of Secretaries will then firm up the proposal for approval of the Cabinet. The employee union leader earlier this week met top government officials where he was told about the tentative time to be taken by the Empowered Committee of Secretaries on screening the allowance committee report on 7th pay commission recommendations. The Ashok Lavasa committee on allowances, which examined the 7th pay commission's recommendations on allowances, submitted its report to the finance minister on April 27.

The allowance committee has suggested some modifications in some 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 allowance committee report is being currently examined by the Department of Expenditure. Once that is done, it will be placed before the Empowered Committee of Secretaries (E-CoS) set up to screen the 7th pay commission recommendations and to firm up the proposal for approval of the Cabinet. The employee union official said that the allowance report will be soon taken up by the Empowered Committee of Secretaries.

The 7th pay commission had recommended that house rent allowance or HRA 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 crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when DA 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. (Also read: House rent allowance claims under scrutiny. How to avoid rejection) 

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 on Wednesday 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. The decision will benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners.

source: NDTV Profit