7th Pay Commission: Report of Allowances likely to submit on Thursday with increased Allowances

7th pay commission: Lavasa committee likely to submit report on increased allowances this Thursday

Arun Jaitley will today embark on a 2-day visit to Russia, wherein he will hold talks with the Kremlin to boost military ties with India.

New Delhi, Apr 25: The Ashok Lavasa committee will most likely release its final report on increments in allowances this Thursday. Finance Minister Arun Jaitley’s return from his visit to the United States and Russia is a major factor in the determination of the release date of the report.

Arun Jaitley will today embark on a 2-day visit to Russia, wherein he will hold talks with the Kremlin to boost military ties with India. This follows Finance Minister Jaitley’s (who also holds the portfolio of defence minister) visit to Washington, where he attended the 2017 Spring Meetings of the World Bank and the IMF.

While this has already posed an extended delay for the release of the final report by the Lavasa committee, central government employees are holding out keeping the proposed increase in major allowances under the seventh pay commission.

The committee has mainly looked towards revising key allowances such as the HRA, while at the same time abolishing or subsuming various non-essential allowances like acting, assisting cashier, cycle, condiment, flying squad, haircutting, rajbhasha, rajdhani, robe, shoe, shorthand, soap, spectacle, uniform, vigilance and washing allowances.

With a focus on the HRA, the Lavasa committee has recommended that the current rates under the seventh pay commission be revised to a rate of 24 per cent, 16 per cent and 8 per cent of the current basic pay, depending on whether the employee is residing in an X, Y or Z class city.

Further, HRA will vary based upon the percentage of the Dearness Allowance (DA). Wherever the Dearness Allowance crosses 50 percent, the committee has recommended that the HRA be given at a rate of 27 per cent, 18 per cent and 9 per cent. In cases where the DA crosses 100 percent, the proposed rates for the HRA are 30 per cent, 20 per cent and 10 per cent.

The recommendations, if implemented would mean that the basic salaries of central government employees would increase significantly under the seventh pay commission. With the increase in various allowances, the salaries of all employees will increase by a minimum of 106 per cent and a maximum of 122 per cent.

Source:- www.india.com