7th Pay Commission – Allowances Report likely this Week but Clarity on HRA Remains elusive

Date : 19.4.2017

7th Pay Commission – Allowances Report likely this Week but Clarity on HRA Remains elusive

Almost 10 months have been passed and around 1 lakh central government employees have been waiting for the implementation of 7th Pay Commission. Some reports suggest that around 47 lakh central government employees and 53 lakh pensioners are upset with the delay in the report submission on higher allowance by allowance committee.

The much delayed report by Committee on Allowances headed by Finance Secretary Ashok Lavasa under the 7th Pay Commission is likely to submit its report on allowances like House Rent Allowance (HRA) and Transport Allowance (TA) this week but there seems to be no clear indication on the fate on HRA.

The Committee was formed by Finance Minister Arun Jaitley to look into the demands of nearly 1 crore central government employees and pensioners for provisions of higher dearness and house rent allowances.

However, reports suggest that there is no clarity on whether the Committee would keep HRA at 30% under the 7th Pay Commission.

The last meeting between the Committee and employees’ union took place nearly two weeks ago.

The commitee reported, “The Committee on Allowances has taken a view of the 14 allowances under the ministries of defence, railways and posts and it would submit its report this week.”

Last year, the government partially accepted the 7th Pay Commission recommendations and hiked basic pay of employees. It referred the issue of allowances like HRA, TA and DA to Committee on Allowances.