NEW HRA 10% TO 28% : LAVASA COMMITTEE REPORT SUGGESTS

NEW HRA 10% TO 28% : LAVASA COMMITTEE REPORT SUGGESTS 

As per Media Reports Published Recently, Lavasa Committee who submitted Report on Allowances to Government has suggested new House Rent Allowance @ 10% to 28%.

See Detailed Report here :

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7th Pay Commission Allowances Committee submits report to Govt

7th Pay Commission Allowances Committee submits report to Govt – Finance Secretary indicates 8% to 24% HRA – Empowered Committee of Secretaries to examine report and submit to Cabinet

The much awaited report by the Finance Secretary who heads the Committee of Allowances which was appointed by Govt to examine the recommendations of 7th Pay Commission relating to Allowances has been submitted as reported by the Economic Times.  The entire Central Government Employees including Railway and Defence Personnel will be benefited once Govt finalises the quantum of allowances payable based on 7th Pay Commission recommendations The following is the breaking news reported by Economic Times.

A high-level committee headed by the Finance Secretary submitted today its report on allowances to 47 lakh government employees to Finance Minister Arun Jaitley.

The Ashok Lavasa Committee was constituted in June last year after the government implemented the recommendations of the 7th Pay Commission.

The pay panel 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.

After submitting the report to Jaitley, Finance Secretary Ashok 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.

Out of total 196 allowances, it had recommended abolition of 52 and subsuming of another 36 into larger existing ones.

The commission had recommended hiking the HRA in the range of 8-24 per cent.

If the pay commission recommendations on allowances are implemented fully, then as per estimates the cost to the exchequer will be Rs 29,300 crore.

Lavasa said the government will take the final call on the date of payout of revised allowances to government employees.

Source: The Economic Times

7th Pay Commission – RBI Worried about Price Rise as Employees wait for HRA

While nearly 1 crore Central government employees and pensioners wait for Centre’s nod for allowances as recommended by the 7th pay commission, the Reserve Bank of India is worried about the consequent inflationary trend.

The RBI senses that once the allowances were given to the employees, the graph would go up on the consumer price index. The 7th pay commission has recommended 8-24 per cent HRA to the Central and state government employees.

Presenting the first monetary policy review for 2017-18 yesterday, the  RBI said that the housing sector would feel the impact almost immediately.

According to the RBI, once the central government decides to give allowances to its employees, the state governments will follow the suit. The combined effect will push the inflation figures by 1-1.5 per cent than the estimates of the RBI.

The RBI also believes that inflationary impact of the 7th pay commission HRA allowances to employees will continue to distort the markets for 18-24 months. The first three to four quarters will see the highest levels of inflation.

The Union cabinet approved implementation of the 7th pay commission’s recommendation last year. But, the Centre has not yet decided to give the HRA to its employees.

WHERE HRA BUCK HAS STOPPED

The Lavasa committee, set up by the Modi government for the implementation, has missed the deadline of February 22 to submit its report.

Earlier, it was being speculated that the committee on allowances under Union Finance secretary Ashok Lavasa would submit the report by March. But, the committee has not yet given its recommendations.

However, further reports suggest that the government is likely to take a decision soon to give HRA to its employees retrospectively from April 1, 2017.

Source: India Today