7th Pay Commission: Here is how you calculate your new HRA arrears

There are several modifications that have been made as per the 7th Pay Commission. Hence a calculator would be necessary to help people calculate what HRA they could expect.

The recommendations made by the 7th Pay Commission included claims of House Rent Allowance, Dearness Allowance among others. There are a total of 196 allowances as recommended by the pay panel.

There are another two weeks to go before the Cabinet goes over the recommendations of the Committee on Allowances report made by the Pay panel. It may be recalled that the Cabinet had on May 4 cleared the proposals relating to the pensioners, defence pensioners, family pensioners and disability pension for defence. Last June the Cabinet had approved recommendations with an additional financial outgo of Rs 84,933 crore for 2016-17 which included arrears for 2 months of 2015-16. The Finance Ministry had said that all proposals accepted for pensioners would be given with arrears with effect from January 1 2016.

How to calculate your HRA arrears

There are several modifications that have been made as per the 7th Pay Commission. Hence a calculator would be necessary to help people calculate what HRA they could expect. The calculator put out by the 7th Pay Commission News will give an expected value on the basis of the recommendations. It would only show the estimated figures based on the inputs that you feed.

In order to calculate you would need to input the 6th CPC basic pay which would also include Grade Pay. Then you will have to select the pay band and grade pay and then input the HRA percentage. In order to calculate the arrears one would need to select the period from which this would be eligible to be paid as per the 7th Pay Commission

You could click here to calculate your new HRA arrears

Final views on HRA

A meeting of the allowance committee to examine the 7th pay commission recommendations will be held soon to finalise its views on HRA. The meeting is likely to be held either by this week or early next week. On March 28, the allowance committee had sought comments from the various ministries on on the treatment of the 14 allowances.

On HRA, the 7th pay commission had recommended that it be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay, depending on type of cities. 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, respectively when DA crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when DA crosses 100 per cent.

What union is demanding?

On allowances, employee unions have demanded HRA at the rate of 30 per cent, 20 per cent and 10 per cent. In June the Justice A K Mathur headed pay panel had accepted the recommendation in respect to hike in basic pay and pension. However the commission's recommendations relating to allowances was referred to the Ashok Lavasa committee. The 7th pay commission had examined a total of 196 existing allowances and recommended abolition of 51 allowances and subsuming of 37 allowances.

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