7th Pay Commission: Narendra Modi-led cabinet may decide on revised allowances for govt employees tomorrow


The Narendra Modi-led cabinet is likely to meet tomorrow and is expected to take a decision on revised allowances under the Seventh Pay Commission.

According to reports, Finance Minister Arun Jaitley is likely to table the proposal for the revised allowance structure at the Cabinet meet--the move will benefit nearly 50 lakh Central government employees.

The Union cabinet could not take the subject of allowances in its last meeting on June 7.


Central government employees, on several occasions, have expressed their disappointment over the long delay in rolling in out revised allowances.


  • If reports are to be believed, Central government employees are likely to start getting revised allowances under the Seventh Pay Commission from July.
  • The Central government, however, may not be keen on giving arrears on allowances, a demand repeatedly raised by employees. According to some reports, employee unions have planned protests if the demand of arrears on allowances is not met.
  • The Seventh Pay Commission recommended axing 53 of the 196 allowances that Central government employees get besides merging 36 smaller allowances into bigger ones.
  • The pay commission also suggested bringing down the House Rent Allowance (HRA) rates for Central government employees by varying degrees depending on the type of city. For instance, the pay commission recommended reducing the HRA for Metros from 30 per cent to 24 per cent.
  • The axing of allowances, and a slash in HRA rates by the Seventh Pay Commission did not go down well with Central government employees.

    Source:-Indiatoday

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