7th Pay Commission: HRA hike of 157 pc in July salary, check city wise table
The statement also said, as the HRA at the reduced rates may not be sufficient for employees falling in lower pay bracket.
Central government employees will start getting HRA hikes after the Central Cabinet cleared the recommendations of the 7th Pay Commission. Employees can expect a HRA hike in the range of 106 and 157 per cent in their July salary.
Meanwhile the process to notify the recommendations of the pay commission cleared by the Cabinet is underway. Following this the HRA hile and revised allowances would be official.
Big HRA hike
HRA is currently paid @ 30% for X (population of 50 lakh & above), 20% for Y (5 to 50 lakh) and 10% for Z (below 5 lakh) category of cities. 7th CPC has recommended reduction in the existing rates to 24 percent for X, 16 percent for Y and 8 percent for Z category of cities," the government said in a statement.
Population of City | DA above | |||
Present | Proposed | 50% | 100% | |
Above 50 lakh (Class X) | 30% | 24% | 27% | 30% |
5 lakh to 50 lakh (Class Y) | 20% | 16% | 18% | 20% |
Below 5 lakh (Class Z) | 10% | 8% | 9% | 10% |
HRA not be less than Rs 5,400
The statement also said, as the HRA at the reduced rates may not be sufficient for employees falling in lower pay bracket, it has been decided that HRA shall not be less than Rs 5,400, Rs 3,600 and Rs 1,800 for X, Y and Z category of cities respectively. This floor rate has been calculated @ 30%, 20% and 10% of the minimum pay of Rs 18,000. This will benefit more than 7.5 lakh employees belonging to Levels 1 to 3."
Population of City | DA above | |||
Present | Proposed | 25% | 50% | |
Above 50 lakh (Class X) | 30% | 24% | 27% | 30% |
5 lakh to 50 lakh (Class Y) | 20% | 16% | 18% | 20% |
Below 5 lakh (Class Z) | 10% | 8% | 9% | 10% |
HRA rates
The 7th Pay Commission had recommended that HRA rates will be revised upwards in two phases to 27%, 18% and 9% when DA crosses 50% and to 30%, 20% and 10% when DA crosses 100%. Keeping in view the current inflation trends, the Government has decided that these rates will be revised upwards when DA crosses 25% and 50% respectively. This will benefit all employees who do not reside in government accommodation and get HRA.
States/Union Territories | Cities classified as X Max HRA-Rs 60,000 per month Min HRA-Rs 5,400 per month | Cities classified as Y Max HRA-Rs 40,000 per month Min HRA- Rs 3,600 per month | |
1 | Andaman & Nicobar Islands | ||
2 | Andhra Pradesh | Hyderabad | Vijawada, Warangal, Visakhapatnam, Guntur, Nellore |
3 | Arunachal Pradesh | ||
4 | Assam | Guwahati | |
5 | Bihar | Patna
| |
6 | Chandigarh | Chandigarh | |
7 | Chhattisgarh | Durg-Bhilai Nagar, Raipur | |
8 | Dadra & Nagar Haveli | ||
9 | Daman & Diu | ||
10 | Delhi | Delhi | |
11 | Goa | ||
12 | Gujarat | Ahmedabad | Rajkot, Jamnagar, Bhavnagar, Vadodara, Sutat |
13 | Haryana | Faridabad, Gurgaon | |
14 | Himachal Pradesh | ||
15 | Jammu & Kashmir | Srinagar, Jammu | |
16 | Jharkhand | Jamshedpur, Dhanbad, Ranchi, Bokaro Steel City | |
17 | Karnataka | Bengaluru | Belgaum, Hubli-Dharwad, Mangalore, Mysore, Gulbarga |
18 | Kerala | Khozhikode, Kochi, Thiruvanthapuram, Thrissur, Malappuram, Kannur, Kollam | |
19 | Lakshadweep | ||
20 | Madhya Pradesh | Gwalior, Indore, Bhopal, Jabalpur, Ujjain | |
21 | Maharashtra | Greater Mumbai, Pune | Amravati, Nagpur, Aurangabad, Nashik, Bhiwandi, Solapur, Kolhapur, Vasai-Virar City, Malegaon, Nanded-Waghala, Sangli |
22 | Manipur | ||
23 | Meghalaya | ||
24 | Mizoram | ||
25 | Nagaland | ||
26 | Odisha | Cuttack, Bhubaneswar, Raurkela | |
27 | Pondicherry | Pondicherry | |
28 | Punjab | Amritsar, Jalandhar, Ludhiana | |
29 | Rajasthan | Bikaner, Jaipur, Jodhpur, Kota, Ajmer | |
30 | Sikkim | ||
31 | Tamil Nadu | Chennai | Salem, Tiruppur, Coimbatore, Tiruchirappalli, Madurai, Erode |
32 | Tripura | ||
33 | Uttar Pradesh |
Moradabad,
Meerut,
Ghaziabad,
Aligarh,
Agra,
Bareilly,
Lucknow,
Kanpur, Allahabad, Gorakhpur, Varanasi, Saharanpur, Noida, Firozabad, Jhansi | |
34 | Uttarakhand | Dehradun | |
35 | West Bengal | Kolkata | Asansol, Siliguri, Durgapur |
Notification will address apprehensions
The Department of Expenditure will issue notifications for implementation of 7th Pay Commission allowances this week, after which it will be put on the department site for downloads. The notification once available for download will address the apprehensions of the Central Government employees.
Read the complete 7th Pay Commission press note:
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved the recommendations of the 7th CPC on allowances with some modifications. The revised rates of the allowances shall come into effect from 1st July, 2017 and shall affect more than 48 lakh central government employees.
While approving the recommendations of the 7th CPC on 29th June, 2016, the Cabinet had decided to set up the Committee on Allowances (CoA) in view of substantial changes in the existing provisions and a number of representations received. The modifications are based on suggestions made by the CoA in its Report submitted to Finance Minister on 27th April, 2017 and the Empowered Committee of Secretaries set up to screen the recommendations of 7th CPC.
The 7th CPC had adopted a three-pronged approach in examining a total of 197 allowances which involved an assessment of the need for continuation of each allowance, appropriateness of the set of people covered by the allowance and rationalisation which involved clubbing of allowances with similar objectives. Based on the examination on these lines, the 7th CPC recommended that 53 allowances be abolished and 37 be subsumed in an existing or a newly proposed allowance.
For most of the allowances that were retained, the 7th CPC recommended a raise commensurate with inflation as reflected in the rates of Dearness Allowance (DA). Accordingly, fully DA-indexed allowances such as Transport Allowance were not given any raise. Allowances not indexed to DA were raised by a factor of 2.25 and the partially indexed ones by a factor of 1.5. The quantum of allowances paid as a percentage of pay was rationalised by a factor of 0.8.
A new paradigm has been evolved to administer the allowances linked to risk and hardship. The myriad allowances, their categories and sub-categories pertaining to civilians employees, CAPF and defence personnel have been fitted into a table called the Risk and Hardship Matrix (R&H Matrix). The Matrix has nine cells denoting varyingdegrees of risk and hardship with one extra cell at the top named as RH - Max to include Siachen Allowance. Multiple rates applicable to individual allowances will be replaced by two slab rates for every cell of the R&H Matrix.
Modifications approved by the Cabinet
The modifications approved today were finalised by the E-CoS based on the recommendations of the CoA. The CoA had undertaken extensive stakeholder consultations before finalising its recommendations. It had interacted with Joint Consultative Machinery (Staff side) and representatives from various staff associations. Most of the modifications are on account of continuing requirement of some of the existing arrangements, administrative exigencies and to further the rationalization of the allowances structure.
Financial Implications
The modifications approved by the Government in the recommendations of the 7th CPC on allowances will lead to a modest increase of ₹1448.23 crore per annum over the projections made by the 7th CPC. The 7th CPC, in its Report, had projected the additional financial implication on allowances at ₹29,300 crore per annum. The combined additional financial implication on account of the 7th CPC recommendations along with the modifications approved by the Cabinet is estimated at ₹30748.23 crore per annum.
Highlights of Cabinet approval on Allowances
1.
Number
of
allowances
recommended
to
be
abolished
and
subsumed:
Government
has
decided
not
to
abolish
12
of
the
53
allowances
which
were
recommended
to
be
abolished
by
the
7th
CPC.
The
decision
to
retain
these
allowances
has
been
taken
keeping
in
view
the
specific
functional
requirements
of
Railways,
Posts
and
Scientific
Departments
such
as
Space
and
Atomic
Energy.
It
has
also
been
decided
that
3
of
the
37
allowances
recommended
to
be
subsumed
by
the
7th
CPC
will
continue
as
separate
identities.
This
has
been
done
on
account
of
the
unique
nature
of
these
allowances.
The
rates
of
these
allowances
have
also
been
enhanced
as
per
the
formula
adopted
by
the
7th
CPC.
This
will
benefit
over
one
lakh
employees
belonging
to
specific
categories
in
Railways,
Posts,
Defence
and
Scientific
Departments.
2.
House
Rent
Allowance
HRA
is
currently
paid
@
30%
for
X
(population
of
50
lakh
&
above),
20%
for
Y
(5
to
50
lakh)
and
10%
for
Z
(below
5
lakh)
category
of
cities.
7th
CPC
has
recommended
reduction
in
the
existing
rates
to
24%
for
X,
16%
for
Y
and
8%
for
Z
category
of
cities.
As
the
HRA
at
the
reduced
rates
may
not
be
sufficient
for
employees
falling
in
lower
pay
bracket,
it
has
been
decided
that
HRA
shall
not
be
less
than
₹5400,
₹3600
and
₹1800
for
X,
Y
and
Z
category
of
cities
respectively.
This
floor
rate
has
been
calculated
@
30%,
20%
and
10%
of
the
minimum
pay
of
₹18000.
This
will
benefit
more
than
7.5
lakh
employees
belonging
to
Levels
1
to
3.
7th CPC had also recommended that HRA rates will be revised upwards in two phases to 27%, 18% and 9% when DA crosses 50% and to 30%, 20% and 10% when DA crosses 100%. Keeping in view the current inflation trends, the Government has decided that these rates will be revised upwards when DA crosses 25% and 50% respectively. This will benefit all employees who do not reside in government accommodation and get HRA.
3.
Siachen
Allowance
7th
CPC
had
placed
Siachen
Allowance
in
the
RH-Max
cell
of
the
R&H
Matrix
with
two
slabs
of
₹21,000
and
₹31,500.
Recognizing
the
extreme
nature
of
risk
and
hardship
faced
by
officers
/
PBORs
on
continuous
basis
in
Siachen,
the
Government
has
decided
to
further
enhance
the
rates
of
Siachen
Allowance
which
will
now
go
up
from
the
existing
rate
from
₹14,000
to
₹30,000
per
month
for
Jawans
&
JCOs
(Level
8
and
below)
and
from
₹21,000
to
₹42,500
per
month
for
Officers
(Level
9
and
above).
With
this
enhancement,
Siachen
Allowance
will
become
more
than
twice
the
existing
rates.
It
will
benefit
all
the
soldiers
and
officers
of
Indian
Army
who
are
posted
in
Siachen.
4.
Dress
Allowance
At
present,
various
types
of
allowances
are
paid
for
provisioning
and
maintenance
of
uniforms/outfits
such
as
Washing
Allowance,
Uniform
Allowance,
Kit
MaintenanceAllowance,
Outfit
Allowance
etc.
These
have
been
rationalised
and
subsumed
in
newly
proposed
Dress
Allowance
to
be
paid
annually
in
four
slabs
@
₹5000,
₹10,000,
₹15,000
and
₹20,000
per
annum
for
various
category
of
employees.
This
allowance
will
continue
to
be
paid
to
Nurses
on
a
monthly
basis
in
view
of
high
maintenance
and
hygiene
requirements.
Government
has
decided
to
pay
higher
rate
of
Dress
Allowance
to
SPG
personnel
keeping
in
view
the
existing
rates
of
Uniform
Allowance
paid
to
them
(which
is
higher
than
the
rates
recommended
by
the
7th
CPC)
as
also
their
specific
requirements.
The
rates
for
specific
clothing
for
different
categories
of
employees
will
be
governed
separately.
5.
Tough
Location
Allowance
Some
allowances
based
on
geographical
location
such
as
Special
Compensatory
(Remote
Locality)
Allowance
(SCRLA),
Sunderban
Allowance
&
Tribal
Area
Allowance
have
been
subsumed
in
Tough
Location
Allowance.
The
areas
under
TLA
have
been
classified
into
three
categories
and
the
rates
will
be
governed
as
per
different
cells
of
R&H
Matrix
and
will
be
in
the
range
of
₹1000
-
₹5300
per
month.
The
7th
CPC
had
recommended
that
TLA
will
not
be
admissible
with
Special
Duty
Allowance
(SDA)
payable
in
North-East,
Ladakh
and
the
Islands.
Government
has
decided
that
employees
will
be
given
the
option
to
avail
of
the
benefit
of
SCRLA
at
pre-revised
rates
along
with
SDA
at
revised
rates.
6.
Recommendations
in
respect
of
some
important
allowances
paid
to
all
employees:
(i)
Rate
of
Children
Education
Allowance
(CEA)
has
been
increased
from
₹1500
per
month
/
child
(max.
2)
to
₹2250
per
month
/
child
(max.2).
Hostel
Subsidy
will
also
go
up
from
₹4500
per
month
to
₹6750
per
month.
(ii)
Existing
rates
of
Special
Allowance
for
Child
Care
for
Women
with
Disabilities
has
been
doubled
from
₹1500
per
month
to
₹3000
per
month.
(iii)
Higher
Qualification
Incentive
for
Civilians
has
been
increased
from
₹2000
-
₹10000
(Grant)
to
₹10000
-
₹30000
(Grant).
7.
Recommendations
in
respect
of
some
important
allowances
paid
to
Uniformed
Services:
Defence,
CAPFs,
Police,
Indian
Coast
Guard
and
Security
Agencies
- The 7th CPC has recommended abolition of Ration Money Allowance (RMA) and free ration to Defence officers posted in peace areas. It has been decided that Ration Money Allowance will continue to be paid to them and directly credited to their account. It will benefit 43000 Defence officers.
- Technical Allowance (Tier - I & II) are paid to Defence officers belonging to technical branches @₹3000 per month and ₹4500 per month. 7th CPC has recommended that Technical Allowance (Tier - II) be merged with Higher Qualification Incentive for Defence personnel. In view of the specific requirements of Defence Forces for the Defence personnel to keep pace with changing Defence requirements and technologies, the Government has decided not to discontinue Technical Allowance. The list of courses for these allowances will be reviewed to remain in sync with the latest technical advancements in Defence.
- The facility of one additional free railway warrant (Leave Travel Concession) presently granted to personnel of Defence Forces serving in field/high altitude/CI Ops shall also be extended to all personnels of CAPFs and the Indian Coast Guard.
- Rates of High Altitude Allowance granted to Defence Forces and CAPF personnel will be governed by the R&H Matrix. The rates will go up from ₹810 - ₹16800 per month to ₹2700 - ₹25000 per month.
- Field Area Allowances are granted to Indian Army, Air Force & CAPF personnel. The rates of Field Area Allowances (Modified Field, Field & Highly Active) will be governed by the R&H Matrix. The rates will go upfrom ₹1200 - ₹12600 per month to ₹6000 - ₹16900 per month. Classification of field areas for this allowance will be done by Ministry of Defence for Defence personnel and by Ministry of Home Affairs for CAPFs.
- The rates of Counter Insurgency Ops (CI Ops) Allowance, granted to Defence and CAPFs while deployed in counter - insurgency operations will be governed by the R&H Matrix. The rates will go up from ₹3000 - ₹11700 per month to ₹6000 - ₹16900 per month.
- Rates of MARCOS and Chariot Allowance granted to marine commandos of Indian Navy will be governed by the R&H Matrix. The rates will go up from ₹10500 - ₹15750 per month to ₹17300 - ₹25000 per month.
- Rates of Sea Going Allowance granted to personnel of Indian Navy will be governed by the R&H Matrix. The twelve hour conditionality for determining the eligibility of Sea Going Allowance has been reduced to four hours. The rates will go up from ₹3000 - ₹7800 per month to ₹6000 - ₹10500 per month.
- Rates of Commando Battalion for Resolute Action (COBRA) Allowance granted to CRPF personnel deployed in Naxal hit areas will be governed by the R&H Matrix. The rates will go up from ₹8400 - ₹16800 per month to ₹17300 - ₹25000 per month.
- Rates of Flying Allowance granted to flying branch and technical officers of Defence Forces will be governed by the R&H Matrix. The rates will go up from ₹10500 - ₹15750 per month to ₹17300 - ₹25000 per month. It has been extended mutatis mutandis to BSF Air Wing also.
- Rates of Higher Qualification Incentive for Defence Personnel have been increased from ₹9000 - ₹30000 (Grant) to ₹10000 - ₹30000 (Grant).
- Aeronautical Allowance, presently paid to personnel of Indian Navy, has been extended to Indian Coast Guard. The rate of this allowance has been increased from ₹300 per month to ₹450 per month.
- Rates of Test Pilot and Flight Test Engineer Allowance will be governed by the R&H Matrix. The rates will go up from ₹1500 / ₹3000 per month to ₹4100 / ₹5300 per month.
- Rates of Territorial Army Allowance have been increased from ₹175 - ₹450 per month to ₹1000 - ₹2000 per month.
- Ceilings of Deputation (Duty) Allowance for Defence Personnel have been increased from ₹2000 - ₹4500 per month to ₹4500 - ₹9000 per month.
- Rates of Detachment Allowance have been increased ₹165 - ₹780 per day to ₹405 - ₹1170 per day.
- Rates of Para Jump Instructor Allowance have been increased from ₹2700/3600 per month to ₹6000 / 10500 per month.
- Special Incident / Investigation / Security Allowance has been rationalized. Rates for Special Protection Group (SPG) have been revised to 55% and 27.5% of Basic Pay for operational and non - operational duties respectively.
- Rates of Higher Qualification Incentive for Defence Personnel have been increased from ₹9000 - ₹30000 (Grant) to ₹10000 - ₹30000 (Grant).
- Aeronautical Allowance, presently paid to personnel of Indian Navy, has been extended to Indian Coast Guard. The rate of this allowance has been increased from ₹300 per month to ₹450 per month.
- Rates of Test Pilot and Flight Test Engineer Allowance will be governed by the R&H Matrix. The rates will go up from ₹1500 / ₹3000 per month to ₹4100 / ₹5300 per month.
- Rates of Territorial Army Allowance have been increased from ₹175 - ₹450 per month to ₹1000 - ₹2000 per month.
- Ceilings of Deputation (Duty) Allowance for Defence Personnel have been increased from ₹2000 - ₹4500 per month to ₹4500 - ₹9000 per month.
- Rates of Detachment Allowance have been increased ₹165 - ₹780 per day to ₹405 - ₹1170 per day.
- Rates of Para Jump Instructor Allowance have been increased from ₹2700/3600 per month to ₹6000 / 10500 per month.
- Special Incident / Investigation / Security Allowance has been rationalized. Rates for Special Protection Group (SPG) have been revised to 55% and 27.5% of Basic Pay for operational and non - operational duties respectively.
- In view of strenuous nature of the job, new Allowance namely Special Train Controller's Allowance @5000 per month for Train Controllers of Railways has been introduced.
- Recommendations in respect of some important allowances paid to Nurses & Ministerial Staffs of Hospital
- Existing rate of Nursing Allowance has been increased from ₹4800 per month to ₹7200 per month.
- Rate of Operation Theatre Allowance has been increased from ₹360 per month to ₹540 per month.
- Rates of Hospital Patient Care Allowance / Patient Care Allowance have been increased from ₹2070 - ₹2100 per month to ₹4100 - ₹5300 per month. 7th CPC recommendations modified to the extent that it will be granted to Ministerial staff also.
8. Recommendations in respect of some important allowances paid to Indian Railways
9.
Recommendations
in
respect
of
some
important
allowances
paid
to
Indian
Railways
10.
Recommendations
in
respect
of
some
important
allowances
paid
to
Pensioners
Rate
of
Fixed
Medical
Allowance
(FMA)
for
Pensioners
has
been
increased
from
₹500
per
month
to
₹1000
per
month.
This
will
benefit
more
than
5
lakh
central
government
pensioners
not
availing
CGHS
facilities.
The
rate
of
Constant
Attendance
Allowance
granted
on
100%
disablement
has
been
increased
from
₹4500
per
month
to
₹6750
per
month.
Allowances to Scientific Departments
The recommendations of 7th CPC to abolish Launch Campaign Allowance and Space Technology Allowance has not been accepted. In order to incentivize the supporting employees in Space and Atomic Energy sector, the rate of Launch Campaign and Space Technology Allowance has been increased from ₹7500 per annum to ₹11250 per annum. Professional Update Allowance for non-gazetted employees of Department of Atomic Energy will also continue to be paid at the enhanced rate of ₹11250 per annum.
The 7th CPC had placed Antarctica Allowance, paid to the Scientists and other members undertaking the expedition to Antarctica under the Indian Antarctic programme, in the RH-Max Cell of the R&H Matrix. The rates of the RH-Max Cell recommended by the 7th CPC were less than the existing rates of Antarctica Allowance which is currently paid on per day basis. Considering the specific nature of these expeditions and to provide appropriate increase in rates, Government has decided to keep Antarctica Allowance out of the R&H Matrix and the allowance will continue to be paid on per day basis as per existing practice. The Rates of Antarctica Allowance will go up from ₹1125 per day (Summers) and ₹1688 per day (Winters) to ₹1500 per day (Summers) and ₹2000 per day (Winters).
Allowances paid to D/o Posts
The recommendations of 7th CPC to abolish Cycle Allowance, granted mainly to Postmen and trackmen in Railways, has not been accepted. Keeping in view the specific requirement of this allowance for postmen in Department of Posts and trackmen in Railways, the cycle allowance is retained and the rates have been doubled from ₹90 per month to ₹180 per month. This will benefit more than 22,200 employees.
Allowances to Scientific Departments
The recommendations of 7th CPC to abolish Launch Campaign Allowance and Space Technology Allowance has not been accepted. In order to incentivize the supporting employees in Space and Atomic Energy sector, the rate of Launch Campaign and Space Technology Allowance has been increased from ₹7500 per annum to ₹11250 per annum. Professional Update Allowance for non-gazetted employees of Department of Atomic Energy will also continue to be paid at the enhanced rate of ₹11250 per annum.
The 7th CPC had placed Antarctica Allowance, paid to the Scientists and other members undertaking the expedition to Antarctica under the Indian Antarctic programme, in the RH-Max Cell of the R&H Matrix. The rates of the RH-Max Cell recommended by the 7th CPC were less than the existing rates of Antarctica Allowance which is currently paid on per day basis. Considering the specific nature of these expeditions and to provide appropriate increase in rates, Government has decided to keep Antarctica Allowance out of the R&H Matrix and the allowance will continue to be paid on per day basis as per existing practice. The Rates of Antarctica Allowance will go up from ₹1125 per day (Summers) and ₹1688 per day (Winters) to ₹1500 per day (Summers) and ₹2000 per day (Winters).
Allowances paid to D/o Posts
The recommendations of 7th CPC to abolish Cycle Allowance, granted mainly to Postmen and trackmen in Railways, has not been accepted. Keeping in view the specific requirement of this allowance for postmen in Department of Posts and trackmen in Railways, the cycle allowance is retained and the rates have been doubled from ₹90 per month to ₹180 per month. This will benefit more than 22,200 employees.
While increasing the rate of allowances affecting the central government employees, especially the Defence, CAPF and Coast Guard personnel, the staff of Railways, Postal department and nursing staff, the total number of allowances have been rationalized from 197 to 128. Thus, the Government has shown a great deal of fiscal prudence and at the same time addressed the genuine concerns of the employees and responded to some of the administrative exigencies necessitating the modifications.
Existing Basic Pay (6th CPC) | HRA (6th CPC) | Entry Pay as per 7th CPC | Revised HRA as per 7th CPC (after Cabinet approval) | ||||
Class X | Class Y | Class Z | Class X | Class Y | Class Z | ||
7000 | 2100 | 1400 | 700 | 18000 | 5400 | 3600 | 1800 |
13500 | 4050 | 2700 | 1350 | 35400 | 8496 | 5664 | 2832 |
21000 | 6300 | 4200 | 2100 | 56100 | 13464 | 8976 | 4488 |
46100 | 13830 | 9220 | 4610 | 118500 | 28440 | 18960 | 9480 |
90000 | 27000 | 18000 | 9000 | 250000 | 60000 | 40000 | 20000 |
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