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7th Pay Commission: Modi cabinet approves revision in HRA rates, other allowances

India Today logo India Today 28-06-2017

The Union Cabinet has approved the recommendations of the Seventh Pay Commission on allowances for Central government employees.

News agency ANI reported the much-awaited development on allowances by quoting sources.

With this, the Narendra Modi government is almost set to implement the revised allowance structure from July.

Prime Minister Modi, who returned from his three-nation tour today morning, was expected to chair the month's last Cabinet meet and decide on allowances for nearly 50 lakh Central government employees.

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1. In June last year, the Narendra Modi Cabinet approved the recommendations of the Seventh Pay Commission which led to a 14.27 hike in basic pay.

2. On allowances, the Seventh Pay Commission recommended doing away with 53 of the 196 allowances for Central government employees and merging another 36 allowances.

3. 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.

4. Government employees, who were already disappointed with the basic pay hike, protested against the Seventh Pay Commission's recommendations on allowances.

5. The Modi government formed a committee under Finance Secretary Ashok Lavasa in July last year to review the recommendations on allowances.

6. The Ashok Lavasa committee, after several extended deadlines, submitted its review report to Finance Minister Arun Jaitley on April 27.

7. The Lavasa report was first sent to the Department of Expenditure for a round of screening. Subsequently, the report was presented to the Empowered Committee of Secretaries (E-CoS).

8. The Empowered Committee of Secretaries (E-CoS) met on June 1 to discuss the Ashok Lavasa panel's report and then forwarded the same to the Union cabinet.

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