The Union Cabinet today approved modifications in the Seventh Central Pay Commission recommendations on pay and pensionary benefits.

Finance Minister Arun Jaitley informed this to media persons after the Cabinet meeting.

The approval to modifications in the Seventh Central Pay Commission recommendations just days after the Ashok Lavasa-led Committee on Allowances recently submitted its review report to Arun Jaitley.

According to sources, the report submitted by the Ashok Lavasa committee was examined by the Department of Expenditure, and will be subsequently placed before the Empowered Committee of Secretaries (E-CoS).

Subsequently, the report on allowances under the Seventh Pay Commission was sent to Union cabinet for approval.

The Ashok Lavasa-led Committee on Allowances submitted its report to Arun Jaitley On April 27. "Modifications have been suggested in some allowances which are applicable universally to all Central government employees as well as certain other allowances which apply to specific employee categories," the Finance Ministry said in a statement on April 28.

Among the specific employee categories identified by the Lavasa committee are railwaymen, doctors, scientists, defence personnel, doctors and nurses, the Finance Ministry statement said.

The Narendra Modi government constituted a committee under Finance Secretary Ashok Lavasa in July to review the recommendations of the Seventh Pay Commission on allowances.

The Seventh Pay Commission suggested abolition of 52 of the total 196 allowances and subsuming 36 other allowances into larger ones. Following representations by several employee unions against the recommendations, the Committee on Allowances was formed under Ashok Lavasa.

The Seventh Pay Commission recommended doing away or merging allowances such as assisting cashier, cycle, condiment, flying squad, haircut, robe, shorthand, soap, spectacle, uniform, vigilance and washing.

The Committee on Allowances was initially given four months to submit its report but the deadline was later extended to February 22, 2017.

The Ashok Lavasa-led committee held detailed discussions with several ministries as well as representatives of employee unions before submitting the report to the Finance Minister.

Among the major concerns of government employees is the Seventh Pay Commission's recommendation on reducing the house rent allowance (HRA) by 2-6 per cent depending on type of cities. Employee representatives are also demanding arrears on allowances.

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