Markets

Final decision on allowances, HRA windfall likely today

Final decision on allowances, HRA windfall likely today

The Narendra Modi-led Union Cabinet will meet for the month's last meeting today, June 28, and the revision of allowances of Central government employees is likely to be discussed at the meeting. The wait has been endless with repeated delays, despite the Empowered Committee of Secretaries submitting its report to the Finance Minister Arun Jaitley on June 1.

Currently, the employees of the central government are getting allowances as per the old structure.

The Pay Commission headed by AK Mathur had proposed the HRA at 24 per cent, 16 per cent and 8 per cent of basic pay for Class X, Y and Z cities, respectively.

The committee prepared its report after consulting representations from various government departments and submitted it in April.

As Prime Minister Narendra Modi returned home from his U.S. visit last night, almost 50 lakh central government employees are waiting for good news on allowance today.

According to a report by IndiaToday, Finance Minister Arun Jaitley will place the recommendation report before the Cabinet today.




Certain modifications in the 7th CPC (Central Pay Commission) recommendations on pay and pensionary benefits in the course of their implementation are on the anvil. In the 6th Pay Commission, the HRA was kept at 30 per cent, 20 per cent, and 10 per cent. It recommended that out of a total 196 allowances, 52 be discontinued and 36 other allowances should be subsumed under other allowances.

7th Pay Commission allowance news 2017 timeline - June 2016: Earlier, the Cabinet had approved implementation of the recommendations with an additional financial outgo of Rs 84,933 crore for 2016-17 (including arrears for 2 months of 2015-16). The 7th Pay Commission recommended a 14.27% hike in basic pay, which was the lowest in 70 years.

The Modi government then constituted a committee under finance secretary Ashok Lavasa in July past year to review the recommendations on allowances.

There are about 47 lakh central government employees.

Cabinet Secretary, in a meeting with government employees' representative NJCA a fortnight ago, said that "things are in the process and most probably would be placed in the next Cabinet meeting".

The report, citing sources, also said the HRA in cities with more than 5 million population is likely to be 27 percent of the basic pay.


  • Sky Sports revamp to get rid of numbered channels and cut prices

    Sky Sports revamp to get rid of numbered channels and cut prices

    But a one-off monthly pass at £34 remains a big outlay for those reluctant to sign up for traditional pay-TV packages. Football will have two dedicated channels, while golf and cricket will each get their own home.
    Bill Cosby 'in good spirits' as he awaits trial verdict

    Bill Cosby 'in good spirits' as he awaits trial verdict

    Prosecutors rejected filing a case against Cosby based on Goins' allegations, which they said investigators could not corroborate. Constand initially settled the case with a civil suit in 2006, having waited a year to report the alleged assault to the police.
    Deadly accident causes Amtrak, MARC service disruptions

    Deadly accident causes Amtrak, MARC service disruptions

    An Amtrak train headed for Newport News came into contact with debris and has suspended service in Providence Forge. Amtrak spokesman Marc Magliari initially had said the two people struck appeared to be trespassing in the area.
  • Backed forces seize new district from IS in Raqqa

    Backed forces seize new district from IS in Raqqa

    USA officials have been careful not to publicly detail the amount or specific types of weapons going to the Syrian Kurds. US-led coalition aircraft have allegedly bombed a prison in Syria killing dozens of civilians.

    States Can't Exclude Churches From Grant Programs

    But Justices Neil Gorsuch and Clarence Thomas, who voted with the majority, weren't buying the narrow "playground only" argument. They also would have held that the Free Exercise Clause allowed Missouri's exclusion of churches from the grant program.
    Mitch McConnell Making Side Deals For Health Care Votes

    Mitch McConnell Making Side Deals For Health Care Votes

    Republican senators planned to travel to the White House later to meet with Mr Trump. He added that the current bill is "not real repeal and needs major improvement".
  • UK high-rise fire: 120 towers fail safety tests

    NHS Improvement had written to all trusts in England to ask them to check the cladding. With all these things coming up in the press, we know that God can over-ride.
    MA  leaders consider state impact of US Senate health care bill

    MA leaders consider state impact of US Senate health care bill

    Democrats remained united in opposition, blasting the Senate bill as a tax break for the wealthy. Twenty-one percent of Republicans oppose the bill and just 35 percent support it.
    Six people charged with criminal offences over Hillsborough disaster

    Six people charged with criminal offences over Hillsborough disaster

    However the families of the victims expressed concern that only eight officers were being considered for prosecution by the CPS. There are 23 suspects, including individuals and organizations, that could face charges.
  • Dozens of prospective jurors beg off 'Pharma Bro' case

    Dozens of prospective jurors beg off 'Pharma Bro' case

    California state health officials say 111 terminally ill people took drugs to end their lives since the practice became legal l. Turns out picking a jury for Martin Shkreli, who's been called the "most-hated man in America", is hard .
    Mosul militants dig in for the final fight

    Mosul militants dig in for the final fight

    The following day, he said, a dozen coalition airstrikes on Mosul's western-most edge killed about 40 militants. The group has carried out sporadic suicide bombings in parts of Mosul using sleeper cells.
    Charlie Gard judgement: European Court rules that doctors should stop life-support

    Charlie Gard judgement: European Court rules that doctors should stop life-support

    Lawyers representing Charlie's parents had argued that the couple's human rights and Charlie's human rights were being undermined. Mr Justice Francis concluded that life-support treatment should end and said Charlie should be allowed to die with dignity.