7th Pay Commission: Central Govt employees may get maximum monthly HRA hike up to Rs 48,000 from June

Central Govt employees monthly HRA hike

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The Central government employees are likely to get maximum monthly hike in house rent allowance (HRA) by up to Rs 48,000 from June this year as per the 7th Pay Commission recommendations.

Central Govt employees HRA hike

According to the sources of Zee News, the Empowered Committee of Secretaries (E-CoS) set up to screen the 7th Central Pay Commission (CPC) recommendations on allowances is expected to firm up the proposal in next 10-15 days for approval of the Cabinet.

A high-level committee headed by the Finance Secretary, Ashok Lavasa had on April 27 submitted its report to Finance Minister Arun Jaitley.

The report is being currently examined by the Department of Expenditure.

The report will be placed before the Empowered Committee of Secretaries (E-CoS) set up to screen the 7th CPC  recommendations and to firm up the proposal for approval of the Cabinet.

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“After consideration by the E-CoS, the proposal for implementation of 7th CPC recommendations on allowances after incorporating the modifications suggested by the committee on allowances in its report shall be placed before the Cabinet for approval,” the report said quoting the Finance Ministry as saying. 

According to the report, the Lavasa Committee has suggested modifications in some allowances applicable universally to all employees and also for those in specific categories, including railways and defence, after examining the 7th Pay Commission recommendations.

“Modifications have been suggested in some allowances which are applicable universally to all employees as well as certain other allowances which apply to specific employee categories such as railwaymen, postal employees, scientists, defence forces personnel, doctors, nurses etc,” the Finance Ministry has added.

The committee on allowances has reportedly given its view in favour of AK Mathur-led 7th Pay Commission recommendation, regarding decrease in house rent allowance (HRA) by 2-6% depending on type of cities, cited the report.

The 7th Pay Commission headed by AK Mathur had earlier proposed the rate of House Rent Allowance (HRA) at 24%, 16% and 8% of the Basic Pay for Class X, Y and Z cities respectively.

The Commission had also recommended that the rate of HRA will be revised to 27%,18% and 9% when dearness allowance (DA) crosses 50%, and further revised to 30%, 20% and 10% when DA crosses 100%.

The existing rates of HRA for Class X, Y and Z cities and towns are 30%, 20% and 10% of Basic pay (pay in the pay band plus grade pay), the report said.

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