7th Pay Commission: Will Narendra Modi government take a final call on Higher Allowances and arrears after MDC Polls

7th Pay Commission: Will Narendra Modi government take a final call on Higher Allowances and arrears after MDC Polls.

Here is the exclusive news article of India.com

New Delhi, April 6: For last 18 months more than 46 lakh central government employees have been eagerly waiting for their increment of salaries but the committee on higher allowances is yet to take any final call. Earlier there were reports that after assembly elections in five crucial state is over the Narendra Modi government will be in a better position to take a decision on higher allowances under the 7th Pay Commission, where the matter has been stuck completely. But a week ago, Shiv Gopal Mishra, convenor of National Joint Council of Action (NJCA) confirmed that the government is not in a position to take a final call on higher allowances due to ongoing MCD Elections in Delhi.

On Thursday a crucial meeting of the allowance committee examining the 7th Pay Commission is likely to be held and some reports suggest that the committee may finalise its views on House Rent Allowance (HRA), NDTV quoted a source. Also, news agency PTI report also confirmed that the HRA part could be finalised by the allowance committee on Thursday. 

On March 28, employee representatives had met the Cabinet Secretary seeking an early finalisation of higher allowances report related to the 7th Pay Commission. The Committee on Allowance has also sought comments from the ministries of defence, railways and posts on the treatment of 14 allowances.

The 7th Pay Commission finding had recommended that the central government employees must be paid HRA at the rate of 24 per cent 16 per cent and 8 per cent of the new basic pay, depending upon the cities they live in. The 7CPC had also recommended that the rate of HRA must be revised to 27 per cent, 18 per cent and 9 per cent, respectively when Dearness Allowance (DA) crosses 50 per cent. The HRA must be revised to 27 per cent, 18 per cent and 9 per cent, respectively when the DA reaches 100 per cent. Also, the employee union had demanded HRA at the rate of 30 per cent, 20 per cent and 10 per cent.

Last year in June the Narendra Modi government had accepted the recommendation made by Justice A Mathur led the committee on a hike in basic pay and pension. But the recommendations related to allowances on were referred to the Ashok Lavasa committee. Overall the 7th Pay Commission had examined a total of 196 existing allowances and had recommended to completely end 51 allowances and subsuming 37 allowances.

Last month, Minister of State for Finance Arjun Ram Meghwal had clarified that the allowance committee is now in the process of finalising its report.

Source : India.com