7th Pay Commission: Cabinet likely to approve higher HRA, allowances today

New Delhi: An important meeting of the Union Cabinet is likely to be held today to discuss on HRA and higher allowances based on the 7th Pay Commission report.

Media reports say that the Cabinet meeting is sheduled later in the day.

The Empowered Committee of Secretaries (E-CoS) last Friday placed its final report on allowance before the Cabinet,

The E-CoS has supported the view of AK Mathur Panel, keeping the House Rent Allowance (HRA)  rate at 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.

Accordingly, 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.

However, the employees were demanding retaining of the existing rates of HRA.  The existing rates of HRA for Class X, Y and Z cities and towns are 30 percent, 20 percent and 10 percent of Basic pay (pay in the pay band plus grade pay).

In the month of April, the Union Cabinet approved important proposals relating to modifications in the 7th CPC (Central Pay Commission) recommendations on pay and pensionary benefits in the course of their implementation.

There are about 47 lakh central government employees.

While recommendations of the CPC on pay and pension were implemented with the approval of the Cabinet, allowances continued to be paid at old rates.

The CPC 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.