Come tomorrow, central government employees pinning their hopes on the recommendations of Ashok Lavasa's Committee on Allowances might have a reason to rejoice. The Empowered Committee of Secretaries (E-CoS) will screen the suggestions before they send it to the Cabinet for approval.
The Empowered Committee is scheduled to meet on June 1, as confirmed by Cabinet Secretary Pradeep Kumar Sinha, to finalise the proposals by Lavasa Committee on allowance structure. Once done with the discussions, the E-CoS will consolidate the report and table it before the Union Cabinet tomorrow itself for final approval.
Meanwhile, central government employees' union has decided to wait for the Cabinet to decide on the allowances reforms before deciding what steps to take next. "We have waited for so long. We will wait for another one or two weeks till the time these changes are executed," said Shiv Gopal Mishra, Secretary, NCJCM.
Sinha, in a meeting last week with Mishra, had assured the latter that the interests of the central government employees will be protected when moving ahead with allowances.
The employees are apprehensive of the 7th Pay Commission cutting down the House Rent Allowance rates to 24 per cent, 18 per cent and 8 per cent on the basis of pay scale. Previously HRA rates were at 30 per cent, 20 per cent and 10 per cent. "HRA rates have never been decreased by any of the previous pay commissions if they have not been increased," noted Mishra.
Apart from HRA , central government employees are also waiting for a word on basic pay and arrears on changed allowance rates. The employees are also waiting for updates on the New Pension System, according to Mishra.
Central government employees have been waiting for an update on allowances since June last year, when the Cabinet approved the 7th Central Pay Commission's recommendations about pay and pension. Extensive changes in allowances suggested by the pay panel were put on hold for they were being examined by the Committee on Allowances.
The 7th Pay Commission had suggested that the 52 allowances out of 196 be entirely scraped while 36 others to be subsumed into other allowances. The Cabinet felt the need to get a second opinion on the proposals and they were put on hold. Presently, allowances are being paid at older rates.
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