7th Pay
Commission: Committee on Allowances likely to present its report today, HRA 30%
for metro expected, revised allowances from April 1
7th Pay Commission: Committee on
Allowances likely to present its report today
The Committee on Allowances, headed by Finance Secretary Ashok
Lavasa, was given time till February 22 to present its report.
It has been
nearly eight months since the Narendra Modi government cleared the
recommendations of the Seventh Pay Commission .
After a long
wait, the Committee on Allowances is likely to submit its report to Finance
Minister Arun Jaitley on Monday.
The committee,
headed by Finance Secretary Ashok Lavasa, was given time till February 22 to
table its report.
The revised
allowances are likely to be effective from April 1.
The house rent allowance (HRA), which forms a crucial part of government
employees' salary, is expected to be fixed at 30 per cent of the basic pay for
employees in metros which have a population of 50 lakh and above.
HERE IS ALL YOU NEED TO KNOW:
The Seventh Pay Commission had recommended 24 per cent of the basic pay as HRA
against the 30 per cent of basic pay under the Sixth Pay Commission.
- The
Committee on Allowances was formed in July last year to review the recommendations
of the pay commission after employees protested against the proposed slash
in the HRA. The pay commission also recommended doing away with 53 of the
196 allowances and merging a few others.
- The
committee was initially given four months to table its report, which was
later extended to February 22, 2017. If reports are to be believed, the
Central government is likely to move ahead with the committee's report
after March 15 when Assembly elections will be over.
- If
the government decides to pay a 30 per cent of basic pay as HRA to its
employees, the cost estimate comes to Rs 29,300 crore in the first year.
- The
hiked salary is given in two parts to government employees, in the form of
basic pay and allowances.
- While
the increase in basic pay is calculated on a back-date basis, making
employees eligible for arrears, the hike in allowances is applicable from
the date the government implements it. As a result, employees are not
entitled to arrears in this case.
- It
is widely believed that the government has effectively saved a lot of
money this financial year by not making an announcement on allowances.
Government employees, on the other hand, have expressed their
disappointment over being denied their full remuneration over a prolonged
period.
Source: IndiaToday, Yahoo News
The Committee on Allowances, headed by Finance Secretary Ashok Lavasa, was given time till February 22 to present its report.
HERE IS ALL YOU NEED TO KNOW:
The Seventh Pay Commission had recommended 24 per cent of the basic pay as HRA against the 30 per cent of basic pay under the Sixth Pay Commission.
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