7th Pay Commission: Report tabled before Cabinet, giving higher allowances will have positive impact



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The report by the committee on allowances and HRA as per the 7th Pay Commission has finally been tabled before the Union Cabinet. A decision on the same will be taken after Finance Minister Arun Jaitley returns from South Korea, the National Joint Council of Action (Staff Side) has said.
The delay has agitated over 1 crore central government employees. Many employees staged dharnas to express their anger and disappointment. Hopefully the centre will show some mercy on us, the NJCA has said.

Report tabled

The Lavasa Committee report on allowances was tabled before the Cabinet on Wednesday. The matter was supposed to be taken up, but the agenda was not fixed as Jaitley was absent. The matter would be taken up on a priority basis said a Finance Ministry source once the minister is back. He would set the agenda for the Cabinet and this matter would be the first thing to be taken up as the minister also realises that there is no point in dragging it anymore, the officer also informed OneIndia.

To be put forth before PM

The matter has reached a boiling point and the 11 month wait is becoming unbearable for the employees. The staff have been waiting for a long time and the anxiety has grown. During the dharna there was visible anger. There was also talk that all employees would not report to wok if no decision is taken by the end of this month. The matter has reached such a stage that it would be taken up directly with the Prime Minister. We are trying to put the matter before Narendra Modi before the 25th of June. We want him to clear it before he leaves for his US trip on June 25, the source also added.
Paying allowances will have positive impact
The timely disbursement of allowances to employees will boost the demand and consumer spending. This in turn would give a huge push in terms of manufacturing activity. This would have a positive impact on jobs and revenue generation which will boost overall growth.

Savings of employees will expand

There would be an impact on the aggregated demand in the economy which will trigger higher consumption if the allowances are disbursed. The household income will expand leading an expansion on the savings of employees if the higher allowances and HRA is given as per the 7th Pay Commission.


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