The Union Cabinet is likely to today decide on revising the allowance structure payable to central government employees under the 7th Pay Commission, when it meets this evening. Finance Minister Arun Jaitley is believed to have discussed the matter with Prime Minister Narendra Modi and a decision is likely today. The revised allowances will benefit at least 47 lakh employees. The item has been listed for before the cabinet for discussion but it is yet to be confirmed if it will be taken up.
The government had last year accepted the recommendation of Justice AK Mathur-headed Seventh Pay Commission in respect of the hike in basic pay and pension. For allowances, the government had constituted a committee under Finance Secretary Ashok Lavasa to review the recommendations. This, following protests by government employees that the pay revision was not adequate. The panel submitted its report to the Department of Expenditure, which conducted the first round of review, following which it was presented before the Empowered Committee of Secretaries. The Committee then forwarded the report to the Cabinet. If the Cabinet does indeed take a decision today, government employees will see their July salary increase.
Key among the demands made by central government employees is a revision in the House Rent Allowance or HRA. As of now, the existing rates of HRA for Class X, Y and Z cities and towns are 30 per cent, 20 per cent and 10 per cent of an employee’s basic pay.
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