7th Pay Commission: Central government employees may get good news on allowances soon, crucial meet today

Photo for representation.

The long wait of Central government employees for allowances may end soon. The Empowered Committee of Secretaries (E-CoS) is expected to hold a meeting today to discuss various points regarding the Seventh Pay Commission.

The Ashok Lavasa-led Committee on Allowances has already submitted its review report on Seventh Pay Commission to Finance Minister Arun Jaitley nearly a month ago.

Cabinet Secretary PK Sinha and officials from Home Affairs, Personnel and Training, Health and Family Welfare, Railways and Post are likely to attend the Empowered Committee of Secretaries meeting over Seventh Pay Commission.

  1. Arrears on revised allowances and an increase in basic pay are the two main issues likely to be taken up at the meeting of the Empowered Committee of Secretaries (E-CoS). Currently, Central government employees are drawing allowances at old rates.
  2. Once the E-CoS approves the suggestions made by the Ashok Lavasa committee, it will send the report to the Union cabinet for final approval. If reports are to be believed, the E-CoS could place the Lavasa report on allowances before the Narendra Modigovernment this week.
  3. Finance Secretary Ashok Lavasa was tasked by the Narendra Modi government to review the recommendations of the Seventh Pay Commission following protest by Central government employees.
  4. The Seventh Pay Commission suggested doing away with 52 of the 196 allowances for Central government employees. The pay commission also recommended merging 36 smaller allowances into bigger ones.
  5. In another recommendation which did not go down well with Central government employees, the Seventh Pay Commission wanted the House Rent Allowance (HRA) to be reduced by 2-6 per cent depending on the categories of cities.
  6. The Ashok Lavasa panel, which submitted its report to Arun Jaitley after missing deadlines, is believed to have backed Central government employees in their demand to not alter the HRA rates. In that scenario, the employees will continue to draw the HRA as per the standards set by the Sixth Pay Commission.
  7. Nearly 50 lakh Central government employees will benefit from the revision in allowances once the recommendations are implemented. Following the delay in implementation, employees have demanded that the government provides arrears on revised allowances.


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