New Delhi, Mar 20: The Committee on Allowances, headed by Finance Secretary Ashok Lavasa, is expected to submit its report on higher allowances under the 7th Pay Commission recommendations in this month. The Committee on Allowances is likely to propose hike in higher allowances under the 7th Pay Commission for central government employees, besides dearness allowance (DA). The higher allowances will be implemented from the month of April.
Minister of State for Finance Arjun Ram Meghwal, in his written reply to Lok Sabha on March 10 about the 7th Pay Commission, said the ‘Committee on Allowance’ hasn’t submitted its report. The minister had added that the deliberations of the Committee on Allowances were in the final stages and it would soon submit its report. Earlier, a senior Finance Ministry official had said the central government employees will start receiving higher allowance according to 7th Pay Commission recommendations from April 1.
The Committee on Allowance is expected to keep the house rent allowance (HRA) as it was under the Sixth Pay Commission–at 30 per cent, 20 per cent, and 10 per cent respectively. Also, it is likely to remain constant the Transport Allowance for central government employees as 6th Pay Commission recommendations including Dearness Allowance (DA).
“The Committee on Allowances has decided against reducing the house rent allowance (HRA). The 7th Pay Commission suggested bringing down the HRA to 24 per cent, 16 per cent and 8 per cent respectively depending on type of cities,” the Finance Ministry’s officials were quoted as saying by the Sen Times.
The 7th Pay Commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances, which left central government employees fumed. Union Finance Minister Arun Jaitley then formed the Committee on Allowance to look into the provision of allowances other than dearness allowance under the 7th Pay Commission recommendations.
The committee was initially given four months’ time to submit the report. Later, it was given extension till February 22, 2017, to submit its review of the 7th Pay Commission’s recommendations about allowances. Central government employees are currently receiving all allowances except dearness allowance, according to the 6th Pay Commission recommendations.