7th Pay Commission: Allowance committee to submit final report this week

The allowance committee under 7th Pay Commission is likely to soon submit its final report by this week to the government, a media report said. 

The committee which examines the 7th Pay Commission recommendations had held a meeting on April 6 and now the report on higher allowance suggestions, is expected to be submitted within a week, NDTV Profit report said quoting Shiv Gopal Mishra,  the convenor of National Joint Council of Action (NJCA). 

NJCA is a joint body of unions representing central government employees.

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In June last year, after the implementation of 7th Pay Commission, Finance Minister Arun Jaitley had announced the formation of Lavasa panel , to examine the suggestions on higher allowance. 

In the last meeting, which held on March 28, the Lavasa Panel had said they will finalise the report after receiving comments from ministries on treatment of 14 allowances and benefits. The panel had sought comments from ministries of defence, railways and posts on treatment of over a dozen benefits.

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Other recommendations that included a change in the present system of accounting, wherein pay and allowances are clubbed and it would be difficult to bifurcate these.

Out of 196 allowances, the 7th Pay Commission report had recommended abolition of 52 and subsuming of another 36 into larger existing ones. 

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The panel will also finalise its views on reducing the house rent allowance (HRA) to 24%, 16% and 8% of the new Basic Pay, depending on the type of cities while the employees' unions had demanded HRA at 30, 20 and 10%.