7th Pay
Commission: Ashok Lavasa committee on
allowance submits report to Arun Jaitley today.
allowance submits report to Arun Jaitley today.
The
Ashok Lavasa Committee on Allowances submitted its report to Finance Minister
Arun Jaitley on April 27. The Committee was formed to review the
recommendations of the Seventh Pay Commission.
The
pay commission had recommended abolition of or subsuming of allowances like
acting, assisting cashier, cycle, condiment, flying squad, haircutting,
rajbhasha, rajdhani, robe, shoe, shorthand, soap, spectacle, uniform, vigilance
and washing.
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The report will now be examined by the empowered committee of
secretaries and following that it will be placed before the Cabinet.
The
Committee was constituted in June last year after the government implemented
the recommendations of the Pay Commission.
However,
if the government implements pay commission recommendations on
allowances, then as per estimates the cost to the exchequer will be Rs 29,300
crore.
Here's a background to the Seventh Pay Commission story:
Here's a background to the Seventh Pay Commission story:
The
Seventh Pay Commission had recommended abolishing 53 of the 196 allowances, and
subsuming 36 other allowances. It also recommended slashing the House Rent
Allowance (HRA)--for metros, commission recommended bringing down the HRA from
30 per cent to 24 per cent.
The
Seventh Pay Commission had recommended the rate of House Rent Allowance
(HRA) be kept at 24 percent, 16 percent and 8 percent of the Basic Pay for
Class X, Y and Z cities respectively.
Government
employees protested the recommendations of the Seventh Pay Commission,
following which the Narendra Modi government formed a committee under Finance
Secretary Ashok Lavasa to review the suggestions.
The
Committee on Allowances was constituted in July and after an extended deadline
was asked to submit its report to the government by February 22, 2017.
That
the Ashok Lavasa-led committee had missed its deadline was revealed by Minister
of State for Finance Arjun Ram Meghwal while replying to a question on Seventh
Pay Commission in Parliament.
It
was reported that the Committee on Allowances could not submit its report as it
had sought comments from various ministries on 14 allowances.
Speculations are rife that the Committee on Allowances is likely to recommend against reducing HRA. Although, a few reports had suggested that the committee is unlikely to vote for a hike in transport allowance.
Speculations are rife that the Committee on Allowances is likely to recommend against reducing HRA. Although, a few reports had suggested that the committee is unlikely to vote for a hike in transport allowance.
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