New Delhi: While the wait for changes in allowance structure under the 7th Pay Commission was expected to end on June 28, it seems, the central government employees may have to wait longer before the new House Rent Allowances (HRA) and allowances roll out.
The matter was supposed to be finally decided at Cabinet meeting on June 28 but as the roll out of GST is on the cards, a decision in this regard will take longer.
Also Read: 7th Pay Commission: Details of allowances in different posts, pensioners
The Cabinet is now set to take a final call on the issue in its Cabinet meeting to be held on July 5.
Nearly 47 lakh Central government employees are eagerly waiting for the approval of higher allowances and HRA as per the 7th Pay Commission.
Meanwhile, the Empowered Committee of Secretaries (E-CoS), which was set up to screen the Lavasa panel recommendations on allowances, has already submitted its proposal to the Cabinet for approval.
It is worth mentioning that the HRA is likely to be fixed as per the proposal of AK Mathur-led committee which has recommended HRA of 24 percent of the Basic Pay for Class X cities while 16 percent and 8 percent of the Basic Pay for Class Y and Z cities respectively.
If the Cabinet accepts the recommendations of A K Mathur-led 7th Pay Commission then the central government employees get HRA ranging from 106 percent to 122 percent. And if it retains the 6th Pay Commission HRA then the HRA will increase from 157 percent to 178 percent.
Earlier, the central government employees had expressed dissatisfaction over the Pay Commission’s recommendation that out of total 196 allowances, 52 be discontinued and 36 other allowances be subsumed under other allowances. They also urged the PM to take a second opinion in the matter.