Percentage of HRA in 7th pay commission after cabinet approval
The Pay commission has recommended HRA should be rationalized by using the factor 0.8 which is used for rationalising the percentage based allowances. The 7th CPC recommended 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively. The Commission also recommended that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent [ See the 7th CPC recommendation on HRA ]
The cabinet committee reviewed the recommendations on Allowances and they are not able to give a decision over the Allowances. Hence the Union Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. And it is said that the Committee will complete its work in a time bound manner and submit its reports within a period of 4 months.
In the press release issued by government said the following
” The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.”
The above press release concluded with a statement of ” Till a final decision, all existing Allowances will continue to be paid at the existing rates”
Since the House Rent Allowance also listed among one of these 196 Allowances, the status HRA is not clear now. The existing rates of HRA is 30%, 20% and 10% for class X, Y and Z respectively. Whether these existing rates of HRA will be paid based on revised pay or pre revised pay..? It needs to be clarified when implementation of 7th pay commission is in process.
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7 thoughts on “Percentage of HRA in 7th pay commission after cabinet approval”
Though its clear allowances to be paid based on old rate/ old basic pay, what happens when increment is given on 01 Jul 2016 ? Because basic pay to change after increment. Simple understanding, to calculate HRA for July 2016, one needs to add increment on old basic pay for calculation ? Also what about DA applicable in Tpt Allce in July 2016?
Similar clarity is required in case of transport allowance. Now the DA is 0%. So far, the employee used to get TPT [email protected]%. The transport allowance will be paid at existing rates (400/ 800/1600) or with old DA (900/ 1800/3600)?
If HRA is paid at the old rate of 30%, 20% and 10% on the old basic pay, the increase in 7th CPC will be only 14.22% in gross salary and not 23.55%. Payment of HRA at 24%, 16% and 8% on the revised basic pay will be highly beneficial.If Cabinet approve HRA at 24%, 16% and 8% on the revised basic pay it will be more than 100% of what was received in the old basic pay and the hike in salary and allowances will come to 23.55% only then.
Kindly refer the Presentation made during the Press Meet, in the presentation it is mentioned as under:
“”Pending final decision based on the report of the
Committee, all allowances to be paid as per
existing rates in existing pay structure””. Hence it is clear that the HRA will be paid on the 6th CPC Basic pay and Rates.
Sir its clearly written in SECRETARY , FINANCE Presentation uploaded on PIB
EXISTING RATES on EXISTING PAY SCALES…
HRA will be paid at 10/20/30% with New basic pays. same way Transport Allowances also paid at existing rates like 400/800/1600
It is like the ruling made for GIS. Assume an officer is deducted 500 Rd per month for GIS. He will continue to pay the same as per govt press release. His will be at existing rates.
Same way HRA also will be paid as the same quantum. Say if one is getting 10000rs HRA now, he will continue to get the same 10000