7th Pay Commission: HRA allowances, suggestions by allowance committee in 2 weeks

It may be recalled that the Union Cabinet on Wednesday had approved modification in the recommendations of the 7th Pay Commission.

It would take another two weeks for the Empowered Committee of Secretaries to screen the allowance committee report on the 7th Pay Commission recommendations. The screening would be regarding the suggestions made by the allowance committee.

Modifications in some allowances were suggested which will be applicable to all employees as well as certain other allowances which apply to specific employee categories, the finance ministry said in a statement. The 7th pay commission had recommended that house rent allowance (HRA) 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.

Screening in two weeks

The leaders of the employees union had met with top government officials. They were assured that it would take two weeks for the Empowered Committee of Secretaries to screen the allowance committee report on the 7th Pay Commission recommendations. The Ashok Lavasa Committee on allowances had examined the 7th pay commission's recommendations on allowances and submitted its report to the finance minister on April 27.

Recommendations on HRA

The 7th pay Commission had recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent 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. On the allowances, the unions have demanded HRA at the rate of 30 per cent, 20 per cent and 10 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.

Cabinet aproval

It may be recalled that the Union Cabinet on Wednesday had approved modification in the recommendations of the 7th Pay Commission. The modification was approved relating to the method of revision of pension of pre-2016 pensioners and family pensioners based on recommendations of a high-level panel. This decision will benefit over 55 lakh pre-2016 civil and defence and family pensioners.

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