Cabinet Meeting on 7th Pay Commission Today, Likely to Discuss on Allowances


Today, around 5 pm, 50 lakh central employee will attend a cabinet meeting. It would be intresting to see if this cabinet meeting brings something good for the employees. In this meeting employees are expecting the decision on the issue of 7th pay Commission Allowances. Let us inform you that Narendra Modi has returned from foreign tour in the night and due to this,the meeting which was scheduled this morning will take place in the evening. According to NDTV, the agenda of this cabinet meeting is still not fixed but it is being speculated that in its last meeting of the month Narendra Modi’s cabinet will take decisions on revised allowances for Central government employees.

The issue of allowances for central government employees under the 7th Pay Commission has been reeling for over a year with reviews at different levels. However, a definite outcome has eluded adding to the frustration among the central government employees. The Union Cabinet was expected to approve the proposal on allowances last week but it got delayed as the Prime Minister Modi was visiting Washington.

It was reported that the House Rent Allowance or HRA could be approved at 27 per cent of the basic pay. The Pay Panel had brought down, in its recommendation, the HRA to 24 per cent, 16 per cent and 8 per cent of the basic pay, depending upon the city the employee is posted in.

The sixth pay commission had pegged the HRA at 30 per cent, 20 per cent and 10 per cent.

The Commission not only brought down the HRA but also done away with as many as 52 allowances. It recommended that out of a total 196 allowances, 52 be discontinued and 36 other allowances should be subsumed under other allowances.

Drastic change in HRA and other allowances did not go well with the central government employees who expressed their opposition and asked the government to take a re-look at the proposed recommendations.

Coming under pressure from nearly 47 lakh central government employees, the Cabinet formed a Committee on Allowances under Finance Secretary Ashok Lavasa last year in June. The Committee was tasked to look into the extensive changes suggested by the 7th Pay Commission.

The Lavasa Committee handed over its review report to the Finance Minister in April after consulting representations from various government departments. The report, post approval, was forwarded to E-CoS for their consideration and consolidation.