Union Cabinet Approves 7th Pay Commission Recommendations On Allowances
New Delhi: Bringing cheer to the Central government employees the Union Cabinet approved recommendations of the Seventh Pay Commission on allowances.
News agency ANI reported the much-awaited development on allowances by quoting sources.
The government will implement the revised allowance structure from July. This is applicable to nearly 50 lakh central government employees.
The employees have been waiting for the decision since months and were eagerly waiting for it.
The Modi Cabinet approved the recommendations of the Seventh Pay Commission which led to 14.27 per cent hike in basic pay in June last year.
The Pay Commission recommended doing away with 53 of 196 allowances and merging another 36 allowances.
The pay commission also suggested reducing the House Rent Allowance (HRA) rates for government employees by 2-6 per cent for X, Y, Z cities. For metros, it suggested bringing down the HRA from 30 per cent to 24 per cent.
Government employees, who were already disappointed with the basic pay hike, protested against the Seventh Pay Commission’s recommendations on allowances.
The Modi government formed a committee under Finance Secretary Ashok Lavasa in July last year to review the recommendations on allowances, which submitted its review report to Finance Minister Arun Jaitley on April 27.