7th Pay Commission: Cabinet may clear HRA as per employees' demand

The employees have said that they want HRA at the rates of 30, 20 and 10 per cent.

It is almost confirmed that the Union Cabinet will complete the formalities relating to the 7th Pay Commission this month itself. The Cabinet which is set to meet on June 28 will take up issues such as revised allowances and HRA and clear the matter, sources have said.

The question is will the Cabinet go ahead with the 27 per cent or 30 per cent HRA hike. While the government is in favour of a 27 per cent HRA hike, employees have been demanding for 30 per cent.

27 or 30 per cent pay hike?

During the deliberations between Prime Minister Narendra Modi and Finance Minister Arun Jaitley, the issue of HRA was most discussed. The committee led by Finance Secretary Ashok Lavasa had suggested that the HRA would be at 25 to 27 per cent. The employees had been demanding 30 per cent HRA. The Cabinet is likely to close the matter at 27 per cent, sources said.

Will make up with allowances

While the HRA hike may not impress the Central Government employees who have been waiting for good news for over one year now, there would be some solace where the revised allowances are concerned. Sources say that the Cabinet will clear the revised allowances. It will be put into effect from July 18 2017 onwards. There is no change in that decision, sources also said.

No compromise

The employees have said that they want HRA at the rates of 30, 20 and 10 per cent. Employee unions have said that they will not compromise for less. Even if the Cabinet clears the HRA at 27 per cent, employees would continue demanding for an increase. A lot would depend on how the employee unions bargain with the government on this aspect. Union leaders have said that even if the Cabinet clears the HRA at 27 per cent, they would continue to demand for more.

No trust

Many government employees have said that they have lost trust in the government. We get to read reports everyday and sometimes we feel these are mere assurances, government employees say. We hope that our troubles are taken care of and we get good news, an employee said. The Cabinet Secretary has said that there would be very good news for the employees as per the 7th Pay Commission and they should not lose hope.

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