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7th Pay Commission: Suspense Over Allowance Committee Report Continues

The 7th Pay Commission had recommended that house rent allowance be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay, depending on the type of city.
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Hopes were high that the allowance panel on 7th Pay Commission may submit its report this week.
Hopes were high that the allowance panel on 7th Pay Commission may submit its report this week.

Highlights

  1. Allowance committee on 7th pay commission had last met on April 6
  2. This was seen as a conclusive meeting
  3. Employee unions are demanding higher HRA
The views of allowance committee, which is examining 7th Pay Commission recommendations, are not yet known, a top employee union official said. The panel could submit its report in five to six days, he added. Hopes were high that the allowance committee on 7th Pay Commission may submit its report to the government this week. The allowance committee had held a meeting in this regard on April 6 which some employee union officials termed as "conclusive". The 7th pay commission had examined a total of 196 existing allowances and recommended abolition of 51 allowances and subsuming of 37 allowances.

The 7th Pay Commission had recommended that house rent allowance or HRA be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay, depending on the type of city. The 7th Pay Commission had also recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent when DA crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when DA crosses 100 per cent. With regard to allowances, employee unions have demanded HRA at the rate of 30 per cent, 20 per cent and 10 per cent.

At a previous meeting held on March 28, the allowance committee on 7th Pay Commission recommendations had sought comments from the ministries of defence, railways and posts on treatment of some allowances.

The government had earlier said that that the decision on allowances will be taken after the committee on 7th Pay Commission submits its report. The government had in June accepted the recommendation of Justice AK Mathur-headed Seventh Pay Commission in respect of the hike in basic pay and pension. But the 7th Pay Commission's recommendations relating to allowances were referred to the Ashok Lavasa committee.

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