The allowance committee which examined 7th pay commission’s recommendations has suggested some modifications.
The Empowered Committee of Secretaries (E-CoS) is likely to meet soon to screen the allowance committee report on 7th pay commission recommendations, an employee union leader said. He expects the Empowered Committee of Secretaries to firm up the proposal in a fortnight for approval of the Cabinet. 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 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.
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. The decision will benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners.