Government to announce 7th CPC Allowances in Parliament session
are rising that the government may soon announce a hike in allowance
as part of the Seventh Pay Commission awards. The second half of the
Budget session starts from March 9. Union officials had held final
round of talks on February 22 with members of the Ashok Lavasa panel
on Seventh Pay Commission allowances, according to Shiv Gopal Mishra,
the convenor of National Joint Council of Action (NJCA), a joint body
of unions representing central government employees. Some union
officials said that the panel on Seventh Pay Commission allowances
has already submitted its report.The unions have demanded HRA at the
rate of 30 per cent, 20 per cent and 10 per cent. The Seventh Pay
Commission had recommended that HRA be paid at the rate of 24 per
cent, 16 per cent and 8 per cent of the new Basic Pay, depending on
type of cities.
Seventh Pay Commission had also recommended that the rate of HRA be
revised to 27 per cent, 18 per cent and 9 per cent respectively 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.
panel headed by Finance Secretary Ashok Lavasa had reviewed Seventh
Pay Commission 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 its suggestions
relating to allowances were referred to the committee. The Seventh
Pay Commission had examined a total of 196 existing allowances and,
by way of rationalisation, recommended abolition of 51 allowances
and subsuming of 37 allowances.
committee on allowances was initially given a time of four months to
submit its report to the finance minister. Allowances form a
significant chunk of government employees’ salary.