After the completion of elections in five states, the government is expected to declare and submit the allowance report soon. The Union Cabinet had constituted a separate committee for suggesting measures for streamlining the implementation of National Pension System (NPS) and the meeting on NPS is likely to be conducted by this week.
The Central Government employees have been waiting for the 7th pay commission and seems like they will have to wait a little longer for the good news. The Committee on Allowances was to review the recommendations on the 7th pay commission on allowances within four months, but the deadline was extended to February 22, 2017 and the report is not submitted yet. In a written reply to a question on 7th Pay Commission in Lok Sabha on March 10, Minister of State for Finance Arjun Ram Meghwal said that the Committee, under Finance Secretary Ashok Lavasa, is yet to submit its report.
The ministers said that the deliberations of the committee are in final stages. According to some reports, the Committee on Allowances has decided that the current HRA slab, which is 30 per cent of basic pay, for metros would continue against reducing the House Rent Allowance (HRA) for central government employees. The 7th Pay Commission suggested bringing down the HRA to 24 per cent, 16 per cent and 8 per cent respectively depending on type of cities.
The transport allowance is likely to remain constant as certain reports said the Committee on Allowances agreed with 7th Pay Commission’s recommendation, which had already factored in the Dearness Allowance at 125 per cent assuming the date of implementation to be January 1 next year.