The Lavasa Committee on Allowances under the 7th Pay Commission (7CPC) has submitted its report on House Rent Allowance (HRA), Dearness Allowance (DA), Transport Allowance (TA), etc and now the government has to take its decision.
7th CPC had recommended house rent allowance (HRA) to be paid at the rate of 24%, 16% and 8% of the new Basic Pay, depending on the type of cities. But, employees’ unions have demanded HRA at 30, 20 and 10%.
Recommendations of the Ashok Lavasa Committee on ‘allowances’ was submitted to the government on April 27.
The Cabinet on May 4 cleared the proposals relating to the pensioners including defence pensioners, family pensioners and disability pension for defence.
Other recommendations of the committee included claims of House Rent Allowance(HRA), Dearness Allowance (DA) among others totalling up to 196 allowances.
Constituted in February 2014, the 7th Pay commission was set up to review the principles and structure of payments central government civilian employees including defence forces.
Other recommendations included a change in the present system of accounting, wherein pay and allowances are clubbed and it would be difficult to bifurcate these. Out of 196 allowances, the 7th Pay Commission report had recommended abolition of 52 and subsuming of another 36 into larger existing ones.