The Empowered Committee of Secretaries or E-CoS has submitted its report on higher allowances and HRA as per the 7th Pay Commission to the Cabinet. Apart from capping the HRA, the report speaks about a pay hike which will be approved by the Union Cabinet on June 7.
The Union Cabinet is scheduled to meet on June 7 and the same will be chaired by Prime Minister Narendra Modi. Employees of the Central Government were upset with the pay hike recommended by the panel. This report is likely to bring some relief to employees who have been waiting to hear good news.
Increase in salary
There is some good news on this front for the employees. The Cabinet is likely to give the nod for a salary hike. The announcement will be made after June 7 following the Cabinet meeting. There has been a proposal to hike the salary. This will need the nod of the cabinet. The Cabinet will meet on June 7 after Prime Minister Narendra Modi returns from his foreign tour.
What report states on HRA
The employees had demanded that the HRA slab ranging between 30%, 20% and 10%. However the E-CoS after studying the recommendations as per the demands and the 7th Pay Commission has capped the HRA between 25 and 27 per cent.
Cabinet can reverse decision
Sources say that the Cabinet can reverse the decision on HRA. The Cabinet has the power to consider the HRA slab of 30, 20 and 10 per cent as demanded by the employees. The Cabinet can take a call on whether it should implement the E-CoS recommendation or the demands made by the employees. As per the Cabinet Secretary, P K Sinha, all demands of employees would be taken into account and placed before the Cabinet which is the final authority on this matter.
What did E-CoS consider in report
E-CoS has submitted its report on higher allowances like House Rent Allowance (HRA), Dearness Allowance (DA) and Transport Allowance (TA). The E-CoSrecommended HRA slab ranging between 25%-27% of the basic as against demands of 30%, 20% and 10%. The proposal will be accepted by the Prime Minister and his Cabinet. The announcement to this effect will be made next week by June 7. The most crucial discussion was on HRA.
Gist of E-CoS report
The report on the higher allowances under the 7th Pay Commission to the Union Cabinet submitted.
It has been recommdned that the HRA slab be fixed between 25 to 27 per cent.
The proposal for a salary hike has been made and would be placed before the Union Cabinet.