The Union Cabinet is likely to take a call on the allowance structure of central government employees soon after Prime Minister Narendra Modi returns from his four-nation foreign visit. This could come to pass on June 7, media reports suggest.
The recommendations of Committee on Allowances, led by Finance Secretary Shri Ashok Lavasa, were to be taken up in a meeting of the Empowered Committee of Secretaries (E-CoS) scheduled yesterday (June 1).
Yesterday's meeting focused on House Rent Allowance (HRA) rates. The 7th Central Pay Commission had brought down the HRA to 24 per cent, 16 per cent and 8 per cent for Class X, Y and Z cities respectively, which had the central government employees miffed.
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