New Delhi: In a good news for 47 lakh central government employees, the proposal to hike their allowances as per the recommendations of the 7th Pay Commission will be considered by the Cabinet on Wednesday.
The Ashok Lavasa-led committee on April 28 had suggested changes in some allowances applicable to central government employees and also for those in specific categories, including railways and defence.
It had recommended that 52 out of 196 allowances be abolished altogether and 36 be merged with other heads. The Union Cabinet had in April cleared important proposals relating to modifications in the 7th Pay Commission recommendations on pay and pension benefits.
The commission had recommended hiking the HRA in the range of 8-24 per cent.
Finance Secretary Lavasa had earlier said that he had taken into account representations made by all stakeholders.
The Cabinet had already approved the recommendations regarding pay and pension for central government employees in August last year. The annual pension bill of the central government is likely to be around Rs 1.7 lakh crores.
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