7th Pay Commission: HRA capped at 25 to 27 per cent, report submitted to Cabinet

The Empowered Committee of Secretaries or E-CoS which submitted its report on higher allowances and HRA as per the 7th Pay Commission recommendations has capped the HRA at 27 per cent. Reports state that E-CoS has submitted its report on higher allowances like House Rent Allowance (HRA), Dearness Allowance (DA) and Transport Allowance (TA). The E-CoSrecommended HRA slab ranging between 25%-27% of the basic as against demands of 30%, 20% and 10%. The proposal to hike the salary will be placed before the Cabinet next week. The proposal will be accepted by the Prime Minister and his Cabinet. The announcement to this effect will be made next week by June 7.

What has been recommended The employees had demanded that the HRA slab ranging between 30%, 20% and 10%. However the E-CoS after studying the recommendations as per the demands and the 7th Pay Commission has capped the HRA between 25 and 27 per cent. The employees are unlikely to be happy about this.

Salary hike There has been a proposal to hike the salary. This will need the nod of the cabinet. The Cabinet will meet on June 7 after Prime Minister Narendra Modi returns from his foreign tour. There is some good news on this front for the employees. The Cabinet is likely to give the nod for a salary hike. The announcement will be made after June 7 following the Cabinet meeting.

Highlights from E-CoS report The report on the higher allowances under the 7th Pay Commission to the Union Cabinet. It has been recommdned that the HRA slab be fixed between 25 to 27 per cent. The proposal for a salary hike has been made and would be placed before the Union Cabinet.

What employees asked on HRA The meeting took up the cause of the employees who have been demanding that they be paid a higher HRA. It was pointed out during the discussions that the HRA must be paid at a rate of 30 per cent, 20 per cent and 10 per cent of their basic pay. The Central Government Employee Unions had said that “If the commission before 7CPC had not increased the HRA rates they had not also decreased the rates”. It was pointed out that this was a key grievance and the Cabinet must look into the same.

Source:- OneIndia News