7th Pay Commission: Good news, Cabinet approves HRA, allowances, rollout from July 1

The Lavasa committee had suggested the change in respect of HRA.

The wait was finally over with the Union Cabinet approving the revised allowances as per the 7th Pay Commission. The Union Cabinet approved the recommendations of the pay panel with 34 modifications. The revised rates would be effective from July 1 2017. The hike in allowances will be rolled out along with the July salary. Finance Minister Arun Jaitley said stated that revised structure on HRA and other allowances will be implemented from July 1.

The approval comes nearly 3 months after the committee headed by Finance Secretary Ashok Lavasa submitted a report on revisions.

The rollout of the allowances as per the 7th Pay Commission would mean that central government employees would get a complete hike of 23.8 per cent.Last year, the government had only increased the basic component of the salaries, which raised their pay by roughly 14.3 per cent.

According to Shiv Gopal Mishra, NJCA convener, the HRA would be increased by 3 per cent if the DA crosses 25 per cent of the basic pay.

The Lavasa committee had suggested the change in respect of HRA. Originally, the HRA was to be increased if DA crosses 50 per cent of basic pay. But now, the HRA would be raised by 3 per cent, when DA crosses 25 per cent of the employee's basic pay.

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