The Union Cabinet on Wednesday did not take up proposals related to 7th pay commission allowances, including HRA, as it was not part of the meeting’s agenda, sources told NDTV. Finance Minister Arun Jaitley is on an official visit to South Korea. Nearly 50 lakh central government employees could get revised allowances under 7th pay commission award, including HRA or house rent allowance, from July, Financial Express in a report said last week. The report, citing sources, said that the Cabinet may decide on 7th pay commission allowances this month.
The Lavasa committee suggested some modifications in some allowances that are applicable universally to all employees as well as certain other allowances which apply to specific employee categories, the finance ministry had said in a statement. Economists say that disbursement of 7th pay commission allowances is expected to give a further boost to consumer spending and thus the broader economy.
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The government had last year accepted the recommendation of Justice AK Mathur-headed Seventh Pay Commission in respect of the hike in basic pay and pension. The 7th Pay Commission's recommendations relating to allowances were referred to the Ashok Lavasa committee.
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The 7th pay commission had recommended that of a total of 196 allowances, 52 be abolished altogether and 36 be abolished as separate identities by subsuming them in another allowance.
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