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7th Pay Commission: Latest Update On Allowance Committee Report

The 7th pay commission had examined a total of 196 existing allowances and recommended abolition of 51 allowances and subsuming of 37 allowances.
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The government has earlier said the allowances decision will be taken after the panel submits its report.
The government has earlier said the allowances decision will be taken after the panel submits its report.

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 Ashok Lavasa committee examining 7th pay recommendations on allowances is in the final stage of preparing its report, which is likely to be submitted to the government soon, a top employee union official said. The allowance committee is in the process of preparing notes for it to be taken up by the government, he added. There has not been any official word on whether the allowance committee has been submitted. The government had earlier said that the decision on allowances will be taken after the committee on 7th pay commission recommendations submits its report. Earlier, another union official had attributed the delay in submission of the report to non-availability of allowance panel members. "I believe that there has been some delay in the finalisation of the report as some allowance panel members were outside the country on an official visit," the union official said.

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 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 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.

Meanwhile, a delegation of faculty members of various universities had on April 19 approached the UGC seeking redressal of their demands including the request to make public a committee's report on the 7th pay commission. Union HRD Minister Prakash Javdekar had earlier said that a committee to review the recommendations made by a UGC panel on implementation of the 7th pay commission in educational institutions has been formed.

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