7th Pay Commission: Committee recommends modification in some allowances

Ministry of Finance on Friday said that the allowances report submitted by the Lavasa panel under 7th Pay Commission will now be placed before the Empowered Committee of Secretaries (E-CoS). 

"After consideration by the E-CoS, the proposal for implementation of 7th CPC recommendations on allowances after incorporating the modifications suggested by the Committee on Allowances in its report shall be placed before the cabinet for approval," the Ministry said.

Before placing the report, the Ministry said that the committee has suggested modifications in some allowances which are applicable universally to all employees as well as certain other allowances which apply to specific employee categories such as railway men, postal employees, scientists, defence forces personnel, doctors and nurses etc.

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"Based on extensive stakeholder consultations and detailed examination, the Committee has suggested certain modifications in the 7th CPC recommendations so as to address the concerns of the stakeholders in the context of the rationale behind the recommendations of the 7th CPC as well as other administrative exigencies." 

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The committee informed the Ministry that they have held a total of 15 meetings and was assisted by a Group of Officers headed by Additional Secretary (D/o Expenditure) in examining the representations. 

Further, it mentioned that out of total 196 allowances, it had recommended abolition of 52 and subsuming of another 36 into larger existing ones.

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The commission had recommended hiking the HRA in the range of 8-24%. If the pay commission recommendations on allowances are implemented fully, then as per estimates the cost to the exchequer will be Rs 29,300 crore.