7th Pay Commission: Cabinet to take final call on HRA, allowances today, will govt employees get arrears for 17 months?

| June 19, 2017

The meeting, which is scheduled to take place this evening is likely to focus on recommendations of the Lavasa Panel.

New Delhi: Prime Minister Narendra Modi will hold a review meeting with Finance Minister Arun Jaitley and Finance Secretary Ashok Lavasa to discuss his views on Pay Commission allowances on Monday. The meeting, which is scheduled to take place this evening is likely to focus on recommendations of the Lavasa Panel, reveal Finance Ministry sources.








In April, the Lavasa Panel had examined the Seventh Pay Commission`s recommendations on allowances, and submitted its report to Jaitley.

An Empowered Committee of Secretaries was set up to screen the report and firm up proposals for the Cabinet.The committee had 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.




 However, the Seventh Pay Commission had recommended a total of 196 allowances, 52 be abolished altogether and 36 be abolished as separate identities by subsuming them in another allowance.




7CPC had recommended that HRA to be paid at the rate of 24%, 6% and 8% of the new basic pay depending on type of city. It also recommends HRA to be revised to 27%, 18% and 9% once dearness allowance touches 50%.Further, it recommended HRA to be paid at the rate of 30%, 20% 10% when DA reaches at 100%. With regard to allowances, employee unions have demanded HRA at the rate of 30%, 20% and 10%. Under the 7PC, it has been proposed subsuming nearly 200 allowances into one except a few. The 7th Pay Commission report has recommended abolition of 52 allowances and subsuming of another 36 into larger existing ones.

Finance Minister Arun Jaitley had set up a committee called Committee on Allowances under Finance Secretary Ashok Lavasa last year after accepting all the proposals of 7th Pay Commission barring allowances. The Committee was supposed to give its report on the future of allowances.

 Source:- ZEE NEWS

Category: News, Seventh Pay Commission

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