7th Pay Commission: Central govt employees can hope for good news on allowances from Next Cabinet Meeting

7th Pay Commission: Central govt employees can hope for good news on allowances from Next Cabinet Meeting

7th Pay Commission: Central govt employees can hope for good news on
allowances; Air India privatisation gains momentum*** There is a possibility of the Union Cabinet taking a decision on
raising allowances for Central government staff as recommended by the
7th Pay Commission.
The Union Cabinet is expected to deliberate on raising allowances for
Central government employees when it meets this week, apart from mulling
over various options on restructuring national carrier Air India, including
privatisation even as unions have warned of protests. 
7cpc CGE can hope good news


There is a possibility of the Union Cabinet taking a decision on
raising allowances for Central government staff as recommended by the
7th Pay Commission.
The Union Cabinet is expected to deliberate on raising allowances for
Central government employees when it meets this week, apart from mulling
over various options on restructuring national carrier Air India, including
privatisation even as unions have warned of protests. 
The hike in allowances has been pending for almost two months since the
expert panel headed by Ashok Lavasa submitted its report after studying the
proposals made by the 7th Central Pay Commission (CPC) in its report
submitted in November 2015. 
The Lavasa panel had suggested modifications, which were then referred to
an Empowered Committee of Secretaries (E-CoS) for final approval by the
Union Cabinet. 
The CPC examined 196 existing allowances after which it recommended the
abolition of 51 and subsuming 37 others with the existing ones. The
recommendations of the CPC cover about 47 lakh Central government employees
and 53 lakh pensioners, including those at Indian Railways. 
What the CPC said on HRA
On HRA, the pay panel had said, “…the Commission recommends that HRA
should be rationalised to 24 percent, 16 percent and 8 percent of the Basic
Pay for Class X, Y and Z cities respectively.”
Read also :  7th CPC Revision of Pension of Pre‐2016 Pensioners/ Family Pensioners - PCDA Circular No. C-180
“The Commission also recommends that the rate of HRA will be revised to 27
percent, 18 percent and 9 percent when DA crosses 50 percent, and further
revised to 30 percent, 20 percent and 10 percent when DA crosses 100
percent,” it added. 
A city or town with a population of less than 5 lakh is categorised as “Z”,
while the threshold is 5 to less than 50 lakh for “Y”. Cities with a
population of 50 lakh or above are classified as “X”. 
Employees have demanded a hike of 30 percent, 20 percent and 10 percent,
respectively, as against the CPC’s recommendations. 
If the HRA is hiked in accordance with the CPC’s recommendations, the
additional financial implication on the government exchequer will be Rs
17,200 crore. 
Read more on IBTIMES

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