New Delhi, June 6: ‘Achhe Din’ for central government employees might come soon as the Union Cabinet is likely to take final call on higher allowances including the house rent allowance (HRA), under the 7th Pay Commission, this week. The Union Cabinet is expected to meet on Wednesday and may clear the proposals of the Empowered Committee of Secretaries (E-CoS) on higher allowances under the 7th Pay Commission. The Cabinet is expected to allocate Rs 29,300 crores for the implementation of revised higher allowances under the 7th Pay Commission. A union leader also confirmed the development, saying the Cabinet could take up the matter of 7th pay commission allowances, including HRA, this week. Also Read - 7th Pay Commission Latest News: Ahead of Diwali, Maharashtra Govt Announces Rs 2000 Allowance For Anganwadi Workers
The Empowered Committee of Secretaries (E-CoS) has submitted its recommendations on the Committee on Allowances’ report on higher allowances under the 7th Pay Commission. Though the recommendations of the E-CoS and Committee on Allowances haven’t been made public, but reports suggested that the E-CoS didn’t accept the demand of keeping house rent allowance (HRA) at between 30 per cent, 20 per cent and 10 per cent. The panel has reportedly put a cap on HRA rates between 25 per cent and 27 per cent. 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, while the central government employees want HRA rate to be at at 30 percent, 20 percent and 10 percent of Basic pay. Also Read - 7th Pay Commission Latest News: Ahead of Diwali, Tami Nadu Govt Announces Bonus For Over 2.91 Lakh Employees
The E-CoS has reportedly suggested salary hike for the central government employees under the 7th Pay Commission. However, it is unclear that how much increase has been proposed. Similarly, there is no updates on the recommendations of the Empowered Committee of Secretaries regarding higher allowances under the 7th Pay Commission. The Committee on Allowances, which examined the 7th Pay Commission recommendations on allowances, submitted its report to the finance ministry on April 27. Also Read - 7th Pay Commission Latest Update Today: Ahead of Diwali, Govt Employees of These States to Get Bonus, Gifts | Details Here
If media reports are to be believed, the Committee on Allowances’ didn’t propose any hike in higher allowances under the 7th Pay Commission and the E-CoS is most likely to stick with its recommendations. The Ministry of Finance, however, had said the report had suggested some modifications in some allowances that were applicable universally to all employees as well as certain other allowances which apply to specific employee categories.
The 7th Pay Commission, led by Justice (retd) A K Mathur, had suggested the abolition of 52 out of the 196 existing allowances, apart from subsuming 36 smaller allowances. It triggered massive resentment among central government employees. The central government employees have been waiting for the higher allowances under the 7th Pay Commission since July last year.