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5 June 2017

7th Pay Commission: Decision on higher allowances and HRA to be taken next week

7th Pay Commission: Decision on higher allowances and HRA to be taken next week

The Ashok Lavasa committee, responsible for the examination of the higher allowances under the 7th Pay Commission, submitted its report to the Finance Minister on April 27.

The 7th Pay Commission had earlier recommended that the HRA must be paid to Central Government employees at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay, depending on the type of city they are employed. The 7CPC had also recommended that the rate of HRA must be revised to 27 per cent, 18 per cent and 9 per cent when the Dearness Allowance crossed 50 per cent and further revised to 30 per cent, 20 per cent and 10 per cent when DA crosses 100 per cent. With regard to allowances, employee unions have also demanded that the HRA must be paid at the rate of 30 per cent, 20 per cent and 10 per cent.

Apart from the HRA, the 7th Pay Commission had also recommended that of a total of 196 allowances, 52 must be abolished altogether and 36 must be abolished as separate identities by subsuming them in another allowance.

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