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

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

The Finance Secretary Ashok Lavasa-led Committee on Allowances, which was constituted by the government to examine the Central Pay Commission (CPC) recommendations on allowances, had submitted its report to Finance Minister Arun Jaitley yesterday.

"Modifications have been suggested in some allowances which are applicable universally to all 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 today.

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 CPC recommendations and to firm up the proposal for approval of the Cabinet.

While recommendations of the CPC on pay and pension were implemented with the approval of the Cabinet, allowances continued to be paid at old rates.

The Committee was set up in view of significant changes recommended by the CPC 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 CPC 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 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.

The 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 Pay Commission recommendations on allowances are implemented fully, then as per estimates the cost to the exchequer will be Rs 29,300 crore.