7th Pay Commission: Lavasa Committee on Allowances to submit report

20 Apr 2017 | By Ramya Patelkhana
7th Pay Commission: Report on allowances

The high-level Committee on Allowances headed by Finance Secretary Ashok Lavasa under the 7th Pay Commission is likely to submit its much-delayed report to Finance Minister Arun Jaitley this week.

The Committee's report would cover allowances like House Rent Allowance and Transport Allowance.

It is tasked to examine the Commission's recommendation for abolishing 53 allowances and subsuming another 36 out of 196 allowances.

In context: 7th Pay Commission: Report on allowances

About the Lavasa Committee on Allowances

Finance Minister Arun Jaitley constituted the Lavasa Committee on Allowances in Jun'16 after the government implemented the recommendation of the 7th Pay Commission. It was formed to look into the central government employees and pensioners' demands for provisions of higher dearness and house rent allowances.

20 Apr 20177th Pay Commission: Lavasa Committee on Allowances to submit report

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Committee seeks Ministries' comments

The Lavasa Committee reportedly met with employees' union on 6 April. In a previous meeting on 28 March, it sought comments from the Ministries of Railways, Defence, and Posts on treatment of 14 allowances, including accidental allowance, outstation detention allowance, trip allowance, and ghat allowance.
The Commission's recommendation on rate of HRA

HRA RateThe Commission's recommendation on rate of HRA

The 7th Pay Commission earlier recommended fixing the House Rent Allowance (HRA) rate at 24%, 16%, and 8% of basic pay for Class X, Y, and Z cities respectively.

It also recommended whenever Dearness Allowance (DA) crosses 50%, the HRA rate be revised to 27%, 18%, and 9% respectively.

Similarly, when DA crosses 100%, HRA rate should be revised to 30%, 20%, and 10%.

RecommendationsGovernment partially accepted the Commission recommendations last year

The Commission had also reportedly recommended abolishing or subsuming allowances like acting, assisting cashier, condiment, cycle, flying squad, haircutting, rajdhani, rajbhasha, robe, shoe, soap, shorthand, spectacle, uniform, vigilance, and washing.

The final recommendations on the allowances will affect over 1 crore central government employees and pensioners.

The government partially accepted the Commission's recommendations last year and hiked the central government employees' basic pay.

Nationwide StrikeNJCA may call for a nationwide strike

National Joint Council of Action (NJCA), unhappy with the delay over higher allowances, may call for a nationwide strike if the Lavasa Committee fails to submit its final report.

It was constituted nine months ago but is yet to submit the report.

Meanwhile, National Council Staff Side is holding a Joint Consultative Machinery (JCM) meet on 2 May to discuss the report's delay.

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JCM MeetAbolition of 'Option-1' for pensioners to be discussed

NJCA Convenor Shiv Gopal Mishra said central government employees would go on strike if the Committee rejects their demands.

NJCA is leading a negotiation over 7th Pay Commission on the employees' behalf.

Abolition of 'Option-1' for pensioners, which allows pension hike as per the pay-band at the time of retirement, and the issue of minimum pay hike would be discussed at the JCM meet.

How long should the employees wait, questions Mishra

Mishra said: "Whether the Lavasa Committee submits it(s) report or not (JCM) meet would be held. If the report on allowances is not tabled, then we will plan the next step of action. I cannot rule out the option of reviving the call for strike."