7th Pay Commission: Allowance Report Submitted, Other Latest Developments

NDTV Profit Desk

27 Apr 2017, 10:56 PM IST

Employee unions have demanded HRA at the rate of 30 per cent, 20 per cent and 10 per cent.

The Ashok Lavasa committee examining 7th pay commission recommendations on allowances today submitted its report to Finance Minister Arun Jaitley. After submitting the report to Mr Jaitley, Finance Secretary Ashok Lavasa said the committee has taken into account representations made by various stakeholders. Mr Lavasa also said the government will take the final call on the date of payout of revised allowances to government employees. Meanwhile, representatives of central government employees are scheduled to meet top government officials next week and they are likely to take up allowances regarding 7th pay commission in the meeting, a top union official told NDTV.

The government had earlier said that the decision on allowances will be taken after the committee on 7th pay commission recommendations submits its report.

The 7th pay commission had examined a total of 196 existing allowances and recommended abolition of 51 allowances and subsuming of 37 allowances.

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 government had in June accepted the recommendation of Justice AK Mathur-headed Seventh Pay Commission in respect of the hike in basic pay and pension. But the 7th Pay Commission's recommendations relating to allowances were referred to the Ashok Lavasa committee.

A delegation of faculty members of various universities had on April 19 approached the UGC seeking redressal of their demands including the request to make public a committee's report on the 7th pay commission. Union HRD Minister Prakash Javadekar had earlier said that a committee to review the recommendations made by a UGC panel on implementation of the 7th pay commission in educational institutions has been formed.