7th Pay Commission – Committee on HRA, other Allowances to Submit its final Report this Week

7th Pay Commission – Committee on HRA, other Allowances to Submit its final Report this Week

A high-level committee headed by finance secretary Ashok Lavasa is likely to submit its final report on HRA and other allowances to Finance Minister Arun Jaitley this week.

Even as expectations rise that the allowance committee examining 7th Pay Commission recommendations may submit its report this week, its views are not yet known, a top employee union official said.

The government had earlier said that the decision on allowances will be taken after the committee on 7th Pay Commission submits its report. The allowance committee had held a meeting in this regard on April 6 which some employee union officials termed as “conclusive”. The 7th pay commission had examined a total of 196 existing allowances and recommended abolition of 51 allowances and subsuming of 37 allowances.

The committee, at its previous meeting on March 28, had sought comments from the ministries of defence, railways and posts on treatment of 14 allowances. These allowances include accidental allowance, outstation detention allowance, trip allowance, and ghat allowance.

The 7th Pay Commission had earlier proposed the rate of House Rent Allowance (HRA) at 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.

The Commission had also recommended that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.

The Pay Commission had recommended abolition of or subsuming of allowances like acting, assisting cashier, cycle, condiment, flying squad, haircutting, rajbhasha, rajdhani, robe, shoe, shorthand, soap, spectacle, uniform, vigilance and washing.

Source: NDTV