7th Pay Commission: Latest Update On Allowances (Including HRA)

The Empowered Committee of Secretaries has finalised 7th pay commission-related allowances (including HRA or house rent allowance) proposals for consideration of the Union Cabinet, an employee union leader told NDTV, citing sources. The Cabinet did not take up the 7th pay commission allowances in Wednesday's meeting as it was not part of the agenda, sources told NDTV. The union leader, citing sources, said that the Cabinet is expected to take up the matter soon. The Empowered Committee of Secretaries met on June 1 to screen the report on 7th pay commission allowances (including HRA) to prepare proposals for consideration by the government, the union leader said.

The Ashok Lavasa committee, which examined the 7th pay commission's recommendations on allowances, submitted its report to the finance minister on April 27. The committee was headed by Finance Secretary Ashok Lavasa and had Secretaries of Home Affairs, Defence, Health & Family Welfare, Personnel & Training, and Post, and Chairman, Railway Board, as Members, and Joint Secretary (Implementation Cell) as Member Secretary.

The Lavasa 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 ministry said that an Empowered Committee of Secretaries (E-CoS) will screen the allowance committee report on 7th pay commission recommendations. The empowered committee will then firm up the proposal for approval of the Cabinet.

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The 7th pay commission had recommended that house rent allowance 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 or dearness allowance crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when it 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.

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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.