1. 7th Pay Commission Timeline: All that has happened so far in terms of basic pay, HRA and other allowances

7th Pay Commission Timeline: All that has happened so far in terms of basic pay, HRA and other allowances

Narendra Modi led Cabinet approved recommendations on allowances on Wednesday.

By: | New Delhi | Updated: June 28, 2017 8:12 PM
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7th Pay Commission allowance news 2017 timeline of events: Now, over 47 lakh government employees have a reason to smile.7th pay commission allowance news 2017 HRA: It is a big gift from the Narendra Modi government to the over 47 lakh Central government employees as the Cabinet on Wednesday approved the recommendations on allowances, HRA in terms of 7th Pay Commission report. Announcing the big development, Finance Minister Arun Jaitley said, “Union Cabinet has approved Recommendations of 7th CPC on Allowances with 34 modification.” Also, Jaitley added that revised rates will be effective from 1 July 2017.  The approval came after the Lavasa Committee suggested modifications in some allowances applicable universally to all employees and also for those in specific categories, including railways and defence, after examining the 7th Pay Commission recommendations. The Finance Secretary Ashok Lavasa-led Committee on Allowances, which was constituted by the government to examine the Central Pay Commission (CPC) recommendations on allowances, had submitted its report to Finance Minister Arun Jaitley in the last week on April. There is about 47 lakh central government employees.

28th June 2017: Narendra Modi led Cabinet approved recommendations on allowances. Announcing the big development, Finance Minister Arun Jaitley said, “Union Cabinet has approved Recommendations of 7th CPC on Allowances with 34 modification.” Also, Jaitley added that revised rates will be effective from 1 July 2017.

June 2017: The Lavasa Committee report was examined by the Department of Expenditure. It will be placed before the Empowered Committee of Secretaries (E-CoS) set up to screen the 7th CPC recommendations and to firm up the proposal for approval by the Cabinet.

May 2017: The Union cabinet approved modifications on pay and pensioner benefits almost a week after the Ashok Lavasa-led Committee on Allowances submitted its review report on the 7th Pay Commission recommendations. The benefit of the proposed modifications will be available with effect from 1 January 2016, i.e., the date of implementation of 7th CPC recommendations. With the increase approved by the Cabinet, the annual pension bill alone of the Central Government is likely to be Rs1,76,071 crore. The Cabinet approved modification in recommendations of the 7th pay commission relating to the method of revision of pension of pre-2016 pensioners and family pensioners based on recommendations of a high-level panel. The decision will benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners.

April 2017: A high-level committee headed by finance secretary Ashok Lavasa submitted its report on allowances to 47 lakh central government employees to finance minister Arun Jaitley. After submitting the report to Jaitley, Lavasa said the committee has taken into account representations made by various stakeholders. The report will now be examined by the empowered committee of secretaries and following that it will be placed before the Cabinet, he said. Lavasa said the government will take the final call on the date of payout of revised allowances to government employees.

June 2016: The Ashok Lavasa committee was constituted after the government implemented the recommendations of the 7th Pay Commission. The Pay Commission had recommended abolition of, or subsuming of, allowances like acting, assisting cashier, cycle, condiment, flying squad, haircutting, rajbhasha, rajdhani, robe, shoe, shorthand, soap, spectacle, uniform, vigilance and washing. Out of total 196 allowances, it had recommended abolition of 52 and subsuming of another 36 into larger existing ones. The Pay Commission had recommended hiking the HRA in the range of 8-24%.

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. 1 January 2016 was the date of implementation of 7th CPC recommendations.

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