Cabinet to discuss 7th Pay Commission allowance structure: Key things to know about central govt employees' pay hike

Cabinet to discuss 7th Pay Commission allowance structure: Key things to know about central govt employees' pay hike

The decision on allowances, likely to affect around 55 lakh central government employees, has been a long time coming. The central government employees are expecting that this decision will translate into a bigger paycheck.

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BusinessToday.In
  • Jun 6, 2017,
  • Updated Jun 6, 2017 5:39 PM IST

The Union Cabinet will soon decide the allowance rates for central government employees. In the meeting scheduled on Wednesday , the Cabinet will ponder over the proposals submitted by the Empowered Committee of Secretaries (E-CoS) regarding House Rent Allowance (HRA), payment of arrears over revised allowance rates and hike in basic pay among others.

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The decision, likely to affect around 55 lakh central government employees, has been a long time coming, since the Cabinet approved recommendations of 7th Pay Commission over pay and pension last year. Considering the radical changes in the allowance structure suggested by the pay panel, a Committee on Allowances under Finance Secretary Ashok Lavasa was formed to review them.

Lavasa Committee also incorporated representations regarding allowances from various government departments and agencies, before handing over the review report to Finance Minister Arun Jaitley on April 24. After getting the green signal from Department of Expenditure, the suggestions by the review committee were sent to E-CoS for further deliberations and consolidation

The Cabinet may consider demands of the central government employees when it meets tomorrow.

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The Union Cabinet will soon decide the allowance rates for central government employees. In the meeting scheduled on Wednesday , the Cabinet will ponder over the proposals submitted by the Empowered Committee of Secretaries (E-CoS) regarding House Rent Allowance (HRA), payment of arrears over revised allowance rates and hike in basic pay among others.

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The decision, likely to affect around 55 lakh central government employees, has been a long time coming, since the Cabinet approved recommendations of 7th Pay Commission over pay and pension last year. Considering the radical changes in the allowance structure suggested by the pay panel, a Committee on Allowances under Finance Secretary Ashok Lavasa was formed to review them.

Lavasa Committee also incorporated representations regarding allowances from various government departments and agencies, before handing over the review report to Finance Minister Arun Jaitley on April 24. After getting the green signal from Department of Expenditure, the suggestions by the review committee were sent to E-CoS for further deliberations and consolidation

The Cabinet may consider demands of the central government employees when it meets tomorrow.

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Also watch:

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