7th Pay Commission Allowance news: Committee on higher allowances submits its report to FM Arun Jaitley, major announcement expected

Zeeshan Shaikh
The report further claimed that the government used delaying tactics to save government's money not to pay arrears of allowances on the pretext of formation of 'Committee on Allowances'.

New Delhi, April 27: The ‘Committee on Allowance‘ headed by Finance Secretary Ashok Lavasa today submitted its final report on ‘higher allowances’ and ‘minimum wages’ to Finance Minister Arun Jaitley. The comprehensive report on allowances under the 7th Pay Commission were submitted by Ashok Lavasa and his core team today at around 5 PM and after this major announcement is expected for Central Government employees who are eagerly waiting for arrears in higher allowances. As the final report is submitted, the Union Cabinet will take a call in next few days and there are chances that the government may come up with good news for central government employees. Around 43 lakh central government employees and 57 lakh pensioners are eagerly waiting for the Ashok Lavasa committee to submit its final report.

Earlier there were reports that the Committee on Allowance will submit its final reports after the elections for Delhi Municipal Corporations (MCD) is over and the results are out on April 26. The National Joint Council of Action convenor Shiv Gopal Mishra while speaking to India.com earlier this week said, “Once the committee submits its final report than there are chances that the government may take a final call on minimum wage and higher allowances by the end of this week”. Also Read – 7th Pay Commission Armed Forces news: Non-implementation of 7CPC hurting morale of armed forces, says Veteran

The Ashok Lavasa Committee was formed in June last year, a week after the government implemented the recommendations of the 7th Pay Commission. The pay panel had ten recommended abolition of many allowances including acting, assisting cashier, cycle, condiment, flying squad, haircutting, rajbhasha, rajdhani, robe, shoe, shorthand, soap, spectacle, uniform, vigilance and washing.

Soon after submitting the final report to Finance Minister Arun Jaitley, Ashok Lavasa said the committee has taken into account representations made by various central government employees and other stakeholders.

For next few days the report will be examined by the Empowered Committee of Secretaries and later it will be placed before the Union Cabinet, Mr Lavasa was quoted by news agency PTI.

Out of total 196 allowances, it had recommended the abolition of 52 and subsuming of another 36 into larger existing ones. The commission had recommended hiking the HRA in the range of 8-24 per cent.

If the pay commission recommendations on allowances are implemented fully, then as per estimates the cost to the exchequer will be Rs. 29,300 crore. Lavasa said the government will take the final call on the date of payout of revised allowances to government employees.

(With inputs from PTI)