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Wednesday, 7 June 2017

7TH PAY COMMISSION: ALLOWANCE RELATED ANNOUNCEMENT LIKELY TODAY BY CABINET

7th Pay Commission: Union Cabinet likely to make allowance related announcement today

Key Highlights
  • Union Cabinet is expected to hold meeting today to discuss allowance and HRA
  • Last week E-CoS read higher allowance report under 7th Pay Commission
  • Committee on Allowances has recommended HRA between 25%-27% as against 30%, which was demanded by central government employees
After Empowered Committee of Secretaries (E-CoS) screened the allowance report under 7th Pay Commission, the Union Cabinet is likely to hold a meeting today to discuss issues related to salary hike, house rent allowance (HRA), Dearness Allowance (DA) and Transport Allowance (TA), a media report said.

Following the meeting, the Cabinet is expected to make some key announcement today afternoon, as reported by OneIndia. 

On June 1, E-CoS had met to discuss the recommendations under 7th Pay Commission related to higher allowance and HRA and prepared a proposal for the government's consideration.


7th CPC had recommended house rent allowance (HRA) to be paid at the rate of 24%, 16% and 8% of the new Basic Pay, depending on the type of cities.

However, Zee Business sources told Alok Priyadarshi that the Committee on Allowances has recommended HRA between 25%-27% as against the demand of 30%. 

Another recommendation which is likely to be discussed is related to the change in accounting period. Out of 196 allowances, the 7th Pay Commission report had recommended abolition of 52 and subsuming of another 36 into larger existing ones.

Last week, Cabinet Secretary PK Sinha, who is also the head of E-CoS, gave assurance that all the demands of the central government employeed will be met. 

On April 27, Ashok Lavasa committee, which was formed by Finance Minister Arun Jaitley last year, had placed the recommendation report in front of Finance Ministry to look at demands for the allowances.

Source:-Zee Biz News

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