7th Pay Commission: Modi government approves recommendations on allowances, relief to 50 lakh employees

The Modi government has gifted nearly 50 lakh central employees to the country. The cabinet has approved changes in HRA and other allowances of Seventh Pay Commission. On the issue of the Alliance associated with the Seventh Pay Commission, the employees were waiting for this long-term decision.

The Modi Government is ready to implement these revised allowances from July. Recommendations on HRA and other allowances have been assessed. The cabinet has taken this decision under the chairmanship of PM Modi, who returned from a trip to three countries. This will benefit 50 lakh central employees. The meeting was to be held this morning, but due to the visit of PM Modi, the meeting was held for 5 o’clock in the evening.

The seventh pay commission has increased HRA by 138.71 percent and has proposed to increase 49.79 percent in other allowances. The Central Government approved the recommendations of the Seventh Pay Commission in 2016. The Commission’s report was implemented from January 1, 2016. Due to disagreements on many issues with the allowances, these recommendations have not yet been fully implemented. According to the finance minister, at least HRA of central employees will be Rs 5400, Rs 3600 and Rs 1800. HRA on 50 percent allowances will be 30 percent, 20 percent and 10 percent. After the allowances have been approved, the employees will now be given salaries including arrears.

Apart from this, the Central Government has also approved the disinvestment of Air India. Air India has a debt of more than Rs 50,000 crore. Its main reason is high maintenance cost and lease rent. The company rarely profits except for the financial year 2015-16. Finance Minister Arun Jaitley has already advocated for the privatization of Air India. He had questioned that the airline’s market share is only 14 per cent, in which the use of taxation of 55,000 to 60,000 crore of taxpayers is justified.

Jaitley said, “Theoretically the disinvestment of Air India has been approved. The proposal of the Ministry of Civil Aviation has also been accepted to constitute a group under the chairmanship of the Finance Minister to decide the modalities of the disinvestment process.


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