7th Pay Commission Allowances today; Major announcement on HRA & arrears expected

7th Pay Commission Allowances today; Major announcement on HRA & arrears expected

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New Delhi, June 7: The Union Cabinet is expected to hold a crucial meeting to discuss higher allowances including house rent allowance (HRA) under the 7th Pay Commission. The Union Cabinet may okay the proposals of the Empowered Committee of Secretaries (E-CoS) on higher allowances under the 7th Pay Commission. Major announcement on higher allowances and HRA under the 7th Pay Commission is likely to be made after the Cabinet meeting. The Cabinet is expected to allocate Rs 29,300 crores for the implementation of revised higher allowances under the 7th Pay Commission for the central government employees.


After screening the Committee on Allowances’ report on higher allowances under the 7th Pay Commission, the Empowered Committee of Secretaries (E-CoS) made a draft and submitted to the Union Cabinet. There are mixed reports about the recommendations of the E-CoS on basic pay, higher allowances and HRA under the 7th Pay Commission. A report published in OneIndia said the Empowered Committee of Secretaries (E-CoS) has suggested salary hike for the central government employees under the 7th Pay Commission. But there would be no changes in higher allowances and HRA recommended by Justice (retd) A K Mathur led 7th Pay Commission.

Meanwhile, Shiv Gopal Mishra demanded the Centre to implement higher allowances along with arrears from January 2016. Centre is yet to confirm whether the allowance would be hiked with retrospective effect, considering its impact on the exchequer. “Government had allocated Rs 1 lakh, two thousand crores for implementation of 7th Pay Commission. That amount has not been completely spent. Even if they will provide us arrears on allowances from January 1, 2016, I believe the cost would not exceed beyond the amount allocated,” Mishra said.

The Empowered Committee of Secretaries (E-CoS) is unlikely to accept the demand of keeping house rent allowance (HRA) at between 30 per cent, 20 per cent and 10 per cent. 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 and the E-CoS wouldn’t suggest any change. Earlier, a Sen Times report also said the E-CoS will stick to the recommendations of the Committee on Allowances’ report, which has suggested no hike in higher allowances.

The Ministry of Finance, however, had said Cabinet Secretary Ashok Lavasa led Committee on Allowances had suggested some modifications in some allowances that were applicable universally to all employees as well as certain other allowances which apply to specific employee categories. The 7th Pay Commission had suggested the abolition of 52 out of the 196 existing allowances, apart from subsuming 36 smaller allowances. It triggered massive resentment among central government employees. The central government employees have been waiting for the higher allowances under the 7th Pay Commission since July last year.

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