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 its suggestions relating to allowances were referred to Ashok Lavasa committee. The Union Cabinet had also constituted a separate committee for suggesting measures for streamlining the implementation of National Pension System (NPS).
Regarding allowances, the unions have demanded HRA at the rate of 30 per cent, 20 per cent and 10 per cent. The Seventh Pay Commission had recommended that HRA be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new Basic Pay, depending on type of cities.
"The committee has not submitted its report to the government. The deliberations of the committee are in the final stages," he said in reply to a question in Lok Sabha on March 10," Mr Meghwal had said in his reply. Thereafter the government will take up their recommendations, he said.
The Seventh Pay Commission had also recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent respectively 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.
The committee on Seventh Pay Commission allowances was initially given a time of four months to submit its report to the finance minister. Allowances form a significant chunk of government employees' salary.