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7th Pay Commission Allowances: HRA Could Be Hiked, Other Developments

The Union Cabinet could take up proposals on 7th pay commission allowances (including HRA) next week, said Shiv Gopal Mishra, the convenor of National Joint Council of Action .

The employee union leader also said that there is a possibility of higher HRA or house rent allowance than recommended by the 7th pay commission.

The Union Cabinet on Wednesday did not take up proposals related to 7th pay commission allowances, including HRA, as it was not part of the meeting’s agenda.

Nearly 50 lakh central government employees could get revised allowances under 7th pay commission including HRA from July.

The Cabinet may decide on 7th pay commission allowances this month.

The report also said that the government may approve higher

“The Lavasa committee suggested some modifications in some allowances that are applicable universally to all employees ” said finance ministry in statement.

“At the current juncture, global political and financial risks materialising into imported inflation and the disbursement of allowances under the 7th central pay commission’s award are upside risks. The date of implementation of the latter is still not announced and as such, it is not factored into the baseline projections,” the RBI said .

The government had last year accepted the recommendation of Justice AK Mathur-headed Seventh Pay Commission in respect of the hike in basic pay and pension.

The 7th pay commission had recommended that house rent allowance be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay, depending on the type of city.

The 7th pay commission had also recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent when DA or dearness allowance crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when it crosses 100 per cent.

The 7th pay commission had recommended that of a total of 196 allowances, 52 be abolished altogether and 36 be abolished as separate identities by subsuming them in another allowance.

The Cabinet had earlier approved modification in recommendations of the 7th pay commission relating to the method of revision of pension of pre-2016 pensioners and family pensioners based on recommendations of a high-level panel.

The decision will benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners.

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