New Delhi, June 4: The Union Government is likely to take a decision on the higher allowances and the House Rent Allowance (HRA) under the 7th Pay Commission next week, an employee union leader said. The Empowered Committee of Secretaries on June 1 met the Union Cabinet to screen the report on allowances, including the HRA under the 7th Pay Commission to prepare proposals for consideration by the government.Also Read - 7th Pay Commission: Centre Makes Big Announcement on Monthly Basic Salary of Govt Employees | Details Here

The Ashok Lavasa committee, responsible for the examination of the higher allowances under the 7th Pay Commission, submitted its report to the Finance Minister on April 27. The committee was headed by Finance Secretary Ashok Lavasa and had Secretaries of Home Affairs, Defence, Health and Family Welfare, Personal and Training, and Post, and Chairman, Railway Board, as Members, and Joint Secretary. Also Read – 7th Pay Commission: HRA capped to 27 percent in report of Empowered Committee of Secretaries Also Read - 7th Pay Commission: Good News For Central Govt Employees. Their Basic Salary Likely to Increase in New Year | Here’s How

According to some reports, the Lavasa committee has suggested some modifications in some allowances that are applicable universally to all employees as well as certain other allowances which apply to specific employee categories, the Finance Ministry said in a statement. On June 1, the Empowered Committee of Secretaries firms up the proposal for the approval of the Cabinet. Also Read - 7th Pay Commission: Pensioners Likely to Get Rs 11364 More With Hike in DR, Arrears | Check Calculation Here 

The 7th Pay Commission had earlier recommended that the HRA must be paid to Central Government employees 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 they are employed. The 7CPC had also recommended that the rate of HRA must be revised to 27 per cent, 18 per cent and 9 per cent when the Dearness Allowance crossed 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 also demanded that the HRA must be paid at the rate of 30 per cent, 20 per cent and 10 per cent.

Apart from the HRA, the 7th Pay Commission had also recommended that of a total of 196 allowances, 52 must be abolished altogether and 36 must be abolished as separate identities by subsuming them in another allowance.

The Union Cabinet had earlier approved some modifications in recommendations of 7CPC relating to the method of revision of pension of pre-2016 pensioners and family pensioners based on the recommendations of a high-level panel. The decision will also benefit over 55 lakh pre-2016 civil and defence pensioner and family pensioners.