New Delhi, April 29: The ‘Committee on Allowance’ submitted its final report to Finance Minister Arun Jaitley on Thursday and a few days from now the Union Cabinet will take further decision to approve the recommendations made by the committee. The reports submitted by Finance Secretary Ashok Lavasa will now be kept in front to Empowered Committee of Secretaries (ECS) and once it is approved there, the report will be kept infront of Union Cabinet for approval. After the report is placed before the Union Cabinet there are chances that the higher allowances will be approved in few days.
The 10-month long wait for Central Government employees and a large number of pensioners for allowances is about to end and some reports suggest that the Narendra Modi government is expected to announce a maximum HRA hike of up to 178 per cent for them soon. Around 43 lakh Central Government employees and 57 lakh pensioners are eagerly waiting for allowances.The high-level committee headed by Finance Secretary Ashok Lavasa and several others on Thursday submitted its report to Finance Minister Arun Jaitley.
According to a report published in Zee News, the committee on allowances has given its view in favour of employees by recommending against altering the existing HRA rates. Under 7th Pay Commission, one of the major concerns for employees is to deal with House Rent Allowance (HRA) by 2-6 per cent depending on the type of cities.
The proposal will benefit over 1 crore government employees – working and retired. For central government employees, there is a high expectation on allowances from a sizeable amount of the salary drawn by them.
Last year in June, Ashok Lavasa was constituted after the government implemented the recommendations of the 7th Pay Commission. The committee on allowances was asked to review the recommendations of the 7th Pay Commission, specially on reducing the HRA to 24 per cent of basic pay as against the 30 per cent of basic pay what employees were drawing under the Sixth Pay Commission.
The Ashok Lavasa commitee was also asked to examine the 7th Pay Commission recommendations for abolition of 53 allowances out of a total of 196 allowances and subsuming another 36 into larger existing ones.
AK Mathur who had headed the 7th Pay Commission had earlier proposed the rate of House Rent Allowance at 24 per cent, 16 per cent and 8 per cent of the Basic Pay for Class X, Y and Z cities respectively.
The Commission had also recommended that the rate of HRA will be revised to 27 per cent, 18 per cent and 9 per cent when DA crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when DA cross the limit of 100 per cent.