7th Pay Commission: Central government employees' allowances, HRA unlikely to be discussed in cabinet meet

The wait for central government employees has been frustrating and endless when it comes to 7th Pay Commission recommendations on allowances. The cabinet was expected to discuss the matter today. But, reports now suggest that it is unlikely to happen. According to a report in NDTV, central government employees may have to wait a little longer for a final resolution to the allowances issue as the Finance Minister Arun Jaitley will leave on a four-day visit to South Korea. The proposals related to 7th pay commission allowances are not part of the Cabinet agenda today, it added. 

According to a report in NDTV, the union Cabinet is unlikely to decide on allowances, including HRA, under 7th pay commission award today. The proposals related to 7th pay commission allowances are not part of the Cabinet agenda today, it added. 

Jaitley had received suggestions on June 1 from the Empowered Committee of Secretaries (E-CoS). The E-CoS had submitted its suggestions to Jaitley after going through the review report prepared by the Committee on Allowances led by Finance Secretary Ashok Lavasa.

The recommendations can impact the salary of over 50 lakh central government employees who are waiting for revised allowance rates to be implemented. House Rent Allowance (HRA), Dearness Allowance (DA) among others are part of the proposals in the E-CoS report.

The arrears of central government employees against revised allowance rates could also be discussed in the meeting. Central government employees demand higher allowance rates from the government for the delays in the implementation of the rates. The Cabinet is likely to look into this demand in the meeting.

Central government employees want the rates to be retained at 30 per cent, 20 per cent and 10 per cent for Class X, Y and Z cities, even if they are not hiked. The Committee has capped HRA between 2 per cent and 27 per cent. Even though there has been no official word on the matter from the government, many source-based media reports have suggested that the new allowances could be implemented from July.

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 were recommended by the pay commission.

The Seventh Pay Commission had suggested 53 out of the 196 allowances could be abolished, and 36 other allowances subsumed. The House Rent Allowance (HRA) for metros, could be brought down from 30 per cent to 24 per cent, the commission had recommended.

However, central government employees whose salary would be affected had opposed the recommendations of the Seventh Pay Commission. The government then formed a committee (Committee on Allowances) under the Finance Secretary Ashok Lavasa to further review the pay commission's suggestions.

There were delays in the Committee on Allowances' submission of its reports. Instead of the first deadline of February 22, 2017, the committee submitted it on April 24.

The Department of Expenditure then passed the report to the E-CoS, which has handed it to the Finance Minister who will now discuss it with the Cabinet.