Revised HRA Allowances Recommended To Be Approved By The Cabinet - 7th CPC

Much awaited event for central government employees seems to scour. It is assumed that the central government employees can't be left to feel disappointed with the final report of revised allowances recommended by the 7th Central Pay Commission that is going to be approved by the cabinet very soon.

Empowered Committee of Secretaries (E-CoS) is now to Scan 7th CPC recommendations report submitted by Lavasa Committee, placing before the Cabinet Approval.

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Now moving to the most important point: One should know what exactly is the increment in his Salary and revised allowances, if government approves the revised/enhanced. Although it may differ  due to effective date of revised allowance from 01.01.2016 or 01.08.2016 or the month after the approval of report of allowances committee, but at the same time the paramnews.com team has analyzed report of revised allowances recommended by the 7th Central Pay Commission alongwith demand of employees union and effective date of revised allowance.

The following bar graphs Table to show the allowances form a sizeable amount of the salary drawn by a government employee. The details of allowances recommended by 7th CPC, and as union's demand and the difference between them.

The allowances form a sizeable amount of the salary drawn by a government employee as recommended by 7th CPC.

The allowances form a sizeable amount of the salary drawn by a government employee as union's demand.

The difference of allowances between 7th CPC recommendations and union's demand

The committee on allowances headed by Finance Secretary Ashok Lavasa that was set up to review the recommendations of the Seventh Pay Commission is understood to have finalised its report. Now after review of empowered committee the report will be placed before the cabinet.

The 7th Pay Commission had earlier proposed the rate of House Rent Allowance (HRA) at 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.

The Commission had also recommended that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.

The existing rates of HRA for Class X, Y and Z cities and towns are 30 percent, 20 percent and 10 percent of Basic pay (pay in the pay band plus grade pay).

Assumingly, if the Committee accepts the bare recommendations of A K Mathur-led 7th Pay Commission then the HRA component of central government employees will increase ranging between 106 percent and 122 percent.

Take, for instance, a central government employee at the very bottom of the pay scale, where the basic pay (pay of pay band + grade pay) is now Rs 7,000, would currently be entitled to an HRA of Rs 2,100 in a Class X city. As per 7th Pay Commission, the new entry level pay at this level is Rs 18,000 per month against which the new HRA for a Class X city would be Rs 4,320 per month, that is 106 percent more than the existing level.

Similarly, at the highest level of the pay scale, the Cabinet Secretary and officers of the same rank have a basic pay of Rs 90,000, which means they are entitled to current HRA of Rs 27,000 in Class X towns. After the revised pay scale, the new basic pay is Rs 2.5 lakh, for which the HRA would be Rs 60,000, meaning a hike of 122 percent.

At present, there are as many as 43 lakh central government employees and 53 lakh pensioners who are covered for perks and bonuses under the recommendations of 6th Pay Commission that will soon be replaced by 7th Pay Commission.

Source : Param News