7th Pay Commission: Committee on allowances to submit its final report this week

New Delhi: Committee on allowances will submit its final report to Finance Minister Arun Jaitley this week.

The ‘Committee on Allowances’ will submit its report to FM Arun Jaitley this week.
The ‘Committee on Allowances’ will submit its report to FM Arun Jaitley this week.

The Committee on Allowances headed by the Finance Secretary Ashok Lavasa, which was asked to examine the 7th Pay Commission recommendation for abolition of 51 allowances out of 196 allowances and subsuming another 36 into larger existing ones had held a conclusive meeting on April 6.

The committee, at its previous meeting on March 28, had sought views from the ministries of defence, railways and posts on 14 allowances, a PTI report said, citing sources.

These allowances were left out by the 7th Pay Commission. These allowances include accidental allowance, outstation detention allowance, trip allowance, and ghat allowance.

The committee has taken a final view on these 14 existing allowances, a senior finance ministry official told The Sen Times without elaborating.

The Committee on Allowances was constituted in July last year after the Cabinet implemented the recommendation of the 7th Pay Commission.

The committee was initially given four months’ time to submit the report to Finance Minister Arun Jaitley.

Later, the Finance Minister extended the deadline for report submission to February 22, 2017.

The 7th Pay Commission had recommended the rate of House Rent Allowance (HRA) at 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.

The Commission had also recommended that the rate of HRA will be revised to 27 per cent, 18 per cent and 9 per cent, respectively when DA crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when DA crosses 100 per cent.

The finance ministry official said the committee has finalised its views on the pay commission recommendation of reducing the house rent allowance (HRA) to 24%, 16% and 8% of basic pay as against the 30%, 20% and 10% of basic pay employees were drawing under the Sixth Pay Commission.


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