7th Pay Commission – Modi cabinet meet skips revised allowances, may take it up next week

| June 15, 2017

The Union Cabinet that met on Wednesday did not take up the issue of revised allowances under the Seventh Pay Commission for discussion.

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The Narendra Modi-led Cabinet decided to skip the issue of revised allowances under the Seventh Pay Commission at the meeting on Wednesday. It was the second time in the last fortnight when the Union cabinet was expected to take up the issue of revised allowances for Central government employees.







Now, as per some reports, the Cabinet could take up the issue for discussion at a meeting next week. Several government employee federations are preparing to call for an all-India strike if the Centre fails to announce revised allowances by next week.

Several reports suggest that the House Rent Allowance for Central government employees is likely to be fixed at 27 per cent, 18 per cent and 9 per cent for X, Y and Z cities respectively.




However, once the Dearness Allowance reaches 50 per cent of basic pay, the HRA will be increased to 30 per cent, 20 per cent and 10 per cent for different categories of cities.

HERE IS ALL YOU NEED TO KNOW ABOUT THE LONG WAIT FOR ALLOWANCES UNDER SEVENTH PAY COMMISSION:



  1. Finance Minister Arun Jaitley is likely to table the proposal for revised allowance structure before the Union cabinet at the next meeting. Allowances, including the much-debated HRA, will be discussed at the meet.
  2. Some reports had suggested that the Narendra Modi government could start rolling out revised allowances from July, more than a year after the Union cabinet had okayed the recommendations of the Seventh Pay Commission in June last year.
  3. The Seventh Pay Commission recommended doing away with 53 of the 196 allowances for Central government employees besides merging 36 smaller allowances into bigger ones.
  4. The Seventh 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.
  5. As Central government employees protested against the recommendations, the Modi government constituted a committee under Finance Secretary Ashok Lavasa in July last year to review the suggestions.
  6. The Lavasa committee was given four months to submit its report and later the deadline was extended to February 2017. The Lavasa panel finally submitted its report to Arun Jaitley on April 27.
  7. The Lavasa panel held discussions with all stakeholders, including representatives of Central government employees and various government departments before submitting its report to Finance Minister.
  8. The Ashok Lavasa report was sent to the Department of Expenditure for a first round of review and then placed before the Empowered Committee of Secretaries (E-CoS) for another round of screening.
  9. Representatives of Central government employees wrote to Cabinet Secretary P K Sinha and said that they were clueless about the recommendations of the Ashok Lavasa Committee on Allowances before the E-CoS submitted its report to the Cabinet.
  10. 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 to hear from the Cabinet on implementation of allowances.

Source:- INDIA TODAY

Category: News, Seventh Pay Commission

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