As per the 7th Pay Commission recommendations, the central government employees, on the house rent allowance (HRA) are likely to get maximum monthly hike by upto Rs 48,000 from June this year, reported a leading English daily.
The news portal added that 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, it added.
According to a report, a source within the Finance Ministry said that after consideration by the Empowered Committee of Secretaries, the proposal to implement the pay panel’s recommendations will be placed before the Union Cabinet for approval. In its report, the Lavasa Committee had suggested few modifications in allowances which are applicable universally to all central government employees and also for those is specific categories such as railwaymen postal employees, defence forces personnel, scientists, doctors, nurses among other.
If it is true then the HRA component for the central government employees will increase in the range of 106 and 122 per cent. Under the 6th Pay Commission, till now a central government employee on a basic pay of Rs 7,000 per month was entitled to get an HRA of Rs 2,100 in a Class X city. As per the 7th Pay Commission, the new entry-level pay at this level is Rs 18,000 per month against which the new HRA for Class X city would be 4,320 per month, which means that it is a 106 per cent increase when compared to the existing level.
Under the 6th Pay Commission, the Cabinet Secretary and officers of the same rank have a basic pay of Rs 90,000, which means that they are entitled to a current HRA of 27,000 in Class X towns. After the revision, the new basic pay is Rs 2.5 lakh, for which the HRA would be Rs 60,000. This is a 122 per cent hike.
It was earlier reported that the Committee on Allowances had favoured the recommendations made by the A K Mathur led 7th Pay Commission recommendation with regard to a decrease in HRA by around 2 to 6 per cent depending on the type of cities. The AK Mathur led committee had first proposed that the rate of HRA to be given at 24 per cent, 26 per cent and 8 per cent of the Basic Pay to central government employees for Class X, Y ad Z cities respectively. The committee had further recommended that the rate of HRA to be revised at 27 per cent, 18 per cent and 9 per cent when Dearness Allowance crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when Dearness Allowance of central government employees crosses 100 per cent. Meanwhile the rates of HRA for Class X, Y and Z cities and towns are 30 per cent, 20 per cent and 10 per cent of basic pay of Central Government employees under the 6th Pay Commission.