7th Pay Commission: Meeting On Allowance Likely Next Week

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Employee representatives are likely to hold discussions next week with members of the allowance committee on 7th Pay Commission, Shiv Gopal Mishra, the convenor of National Joint Council of Action (NJCA) told NDTV. The Ashok Lavasa committee, which is looking into 7th pay commission, allowances may submit its report after discussions with employee representatives, he added. Earlier this month, Minister of State for Finance Arjun Ram Meghwal had clarified that the allowance committee on 7th pay commission has not yet submitted its report. The minister said the government will decide on the implementation after the report is submitted by the committee.

The National Joint Council of Action or NJCA is a joint body of unions representing central government employees.

Employee representatives are also likely to further hold discussions with another panel that is looking into NPS or National Pension Scheme, Mr Mishra added. The government has constituted a separate committee for suggesting measures for streamlining the implementation of National Pension System (NPS).
The government had in June accepted the recommendation of Justice AK Mathur-headed Seventh Pay Commission in respect of the hike in basic pay and pension. But the Seventh Pay Commission’s suggestions relating to allowances were referred to the Ashok Lavasa committee. The Seventh Pay Commission had examined a total of 196 existing allowances and, by way of rationalisation, recommended abolition of 51 allowances and subsuming of 37 allowances.

As regards allowances, the employee unions have demanded HRA (house rent allowance) at the rate of 30 per cent, 20 per cent and 10 per cent. The Seventh Pay Commission had recommended that HRA be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay, depending on type of cities.

The 7th Pay Commission had also recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent, respectively when DA crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when DA crosses 100 per cent.