Wednesday 14 June 2017

7th Pay Commission: Jaitley absent, Cabinet does not take up higher allowances, HRA

7th Pay Commission: Jaitley absent, Cabinet does not take up higher allowances, HRA

The wait for the central government employees is about to get longer as the Union Cabinet is unlikely to decide on the higher allowances, including HRA under the 7th Pay Commission today. The issue is not part of the Cabinet agenda today. Finance Minister, Arun Jaitley is on a visit to South Korea today and the matter can be taken up only once he returns. During the previous Cabinet meeting too, Jaitley was absent as he was away in Paris.

Allowances from July 1 Once the Cabinet sets the agenda to discuss the pay commission recommendations, the issue of higher allowances too would be taken up. Sources say that the Cabinet would clear the proposal and the government will implement the revised allowances from July 1. 
Cabinet meet on 7th Pay Commission put off The Cabinet was supposed to take a final decision today on the E-CoS report. The E-CoS was set up to screen the Lavasa panel's recommendations on allowances and it had submitted its report last week to the Cabinet for final approval. Finance Minister, Arun Jaitley is on a visit to South Korea today and the matter can be taken up only once he returns. During the previous Cabinet meeting too, Jaitley was absent as he was away in Paris.

E-CoS report The Empowered Committee of Secretaries has reportedly given its view in favour of AK Mathur-led 7th Pay Commission recommendation, regarding decrease in house rent allowance (HRA) by 2-6 percent depending on type of cities. The Commission headed by AK Mathur 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 existing rates of HRA for Class X, Y and Z cities and towns are 30 percent, 20 percent and 10 percent of Basic pay (pay in the pay band plus grade pay). 

OneIndia News

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