7th Pay Commission: Govt may make key announcement on higher allowances in second half of Budget Session starting from March 9

The second half of the Budget session will begin from March 9 and the government is expected to make important announcement on higher allowances recommended by the 7th Pay Commission.

New Delhi, Feb 28: The second half of the Budget session will begin from March 9 and the government is expected to make important announcement on higher allowances recommended by the 7th Pay Commission. The model code of conduct imposed in the wake of Assembly elections in five states will end on March 8 and the government will be in a position to announce implementation of the higher allowances under the 7th Pay Commission. The government didn’t make any announcement the higher allowances under the 7th Pay Commission in the first half of the Budget session citing model code of conduct.

About 47 lakh Central government employees and 53 lakh pensioners have been waiting for higher allowances under the 7th Pay Commission since July last year. The second half of the Budget session will begin after the polling in all poll-bound states. Sources in the Finance Ministry also said the government would make the announcement of higher allowances under the 7th Pay Commission after five states assembly polls.

The Committee on Allowances, headed by Finance Secretary Ashok Lavasa has submitted its report on Housing Rent Allowance (HRA) to the Finance Ministry. The submission of report further paves the way for government to implement the hike in allowances as per the revised recommendations of 7th Pay Commission. According to reports, the Committee on Allowances has suggested to raise HRA to 30 per cent of the basic pay as against the 24 per cent recommended by the 7th Pay Commission.

The major point of grievance among central government employees was the reduction in Housing Rent Allowance (HRA). As per the 6th Pay Commission report, the HRAs provided were 30 per cent, 20 per cent, 10 per cent for employees living in ‘X’, ‘Y’, ‘Z’ category towns/cities. However, the 7th Pay Commission decreased the allowances to 24, 16 and 8 per cent of the basic pay.

Besides higher allowances under the 7th Pay Commission recommendations, central government employees have also demanded government to provide arrears on the allowances. Since the date of implementation of 7th Pay Commission was fixed as January 1, 2016, employees have demanded the release of arrears on allowances as well.