7th Pay Commission: Lavasa panel suggests changes in allowances for government employees

The Ashok Lavasa Committee report on allowances for central government employees as per 7th Pay Commission recommendations was submitted to Arun Jaitley on Thursday

Finance secretary Ashok Lavasa. The Ashok Lavasa Committee is looking at allowances for central government employees as mentioned in the 7th Pay Commission recommendations. Photo: Ramesh Pathania/Mint

New Delhi: The Ashok Lavasa Committee has suggested modifications in some allowances applicable universally to all central government employees and also for those in specific categories, including railways and defence, after examining the 7th Pay Commission recommendations.

Finance secretary Ashok Lavasa Committee on allowances, which was constituted by the government to examine the 7th Pay Commission recommendations on allowances, had submitted its report to finance minister Arun Jaitley on Thursday.

“Modifications have been suggested in some allowances which are applicable universally to all central government employees as well as certain other allowances which apply to specific employee categories such as railwaymen, postal employees, scientists, defence forces personnel, doctors, nurses, etc.” the finance ministry said in a statement on Friday.

There are about 47 lakh central government employees. The report is being currently examined by the department of expenditure. It will be placed before the Empowered Committee of Secretaries (E-CoS) set up to screen the 7th Pay Commission recommendations and to firm up the proposal for approval of the Cabinet.

While recommendations of the 7th Pay Commission on pay and pension were implemented with the approval of the cabinet, allowances continued to be paid at old rates. The Ashok Lavasa Committee was set up in view of significant changes recommended by the 7th Pay Commission in the allowances structure and a large number of representations received in this regard from various staff associations as well as the apprehensions conveyed by various ministries and departments.

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.

The 7th 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.

The Ashok Lavasa committee, the ministry said, held extensive stakeholder consultations and detailed examination of the recommendations so as to address the concerns of the stakeholders.

If the 7th Pay Commission recommendations on allowances are implemented fully, then as per estimates the cost to the exchequer will be Rs29,300 crore.

PTI