Since last year June month government employees were waiting to know from government on allowances revision. Finally today Committee on Allowances which is led by Finance Secretary Ashok Lavasa is anticipated to put review report to Arun Jaitley, Finance Minister.
Following enough discussion and objection by employees on some of recommendations made by the Seventh Pay Commission on allowances, government shaped a committee to review the allowance. The pay commission suggested decrease the house rent allowance to 24 per cent of basic pay as against 30 per cent of basic pay employees were carrying as per Sixth Pay Commission.
As per the some reports Committee on allowances has suggested the existing HRA slab of 30 per cent of basic salary for metro cities.
The revised allowance will be implemented from 1st April 2017 in view of keeping any impact on the government’s finances current fiscal.