7th Pay Commission: Salaries to increase by 106 to 122 per cent after implementation of new HRA and allowances

| April 18, 2017

The Lavasa Committee has also believed to have proposed a variation in the HRA based upon the percentage of the Dearness Allowance (DA).

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Mumbai, April 18: The Ashok Lavasa Committee is all set to come out with its recommendations on various allowances during this week. The directives, if implemented, will bring about major changes to the salaries of over 47 lakh central government employees. Merely based on the proposed hike in the House Rent Allowance (HRA), salaries of all employees will go up by a minimum of 106 percent and a maximum of 122 percent.

The report, that has been delayed by over a week, has looked towards revising key allowances such as the HRA, while at the same time abolishing or subsuming various non-essential allowances like acting, assisting cashier, cycle, condiment, flying squad, haircutting, rajbhasha, rajdhani, robe, shoe, shorthand, soap, spectacle, uniform, vigilance and washing allowances.

With a focus on the HRA, the Lavasa committee has recommended that the current rates under the seventh pay commission be revised to a rate of 24 per cent, 16 per cent and 8 per cent of the current basic pay, depending on whether the employee is residing in an X, Y or Z class city.

This increase means that for an employee belonging to the entry level category, the basic salary of Rs 18,000 per month would be complemented by the increased HRA, an amount of Rs 4,320 per month if he/she were to live in a class X city. This means that compared to the earlier scale, the employee’s salary has risen by 106 percent.

Similarly, for a central government employee who earns at the top of the pay scale, his/her initial salary would have been Rs 90,000 plus an additional Rs 27,000 towards the HRA. As per the proposed rates, the basic pay of Rs 2.5 lakhs would be added on to by an HRA of Rs 60,000. This would entail a 122 percent upscale.

The Lavasa Committee has also believed to have proposed a variation in the HRA based upon the percentage of the Dearness Allowance (DA). Wherever the Dearness Allowance crosses 50 percent, the committee has recommended that the HRA be given at a rate of 27 per cent, 18 per cent and 9 per cent. Further, in cases where the DA crosses 100 percent, the proposed rates for the HRA are 30 per cent, 20 per cent and 10 per cent.

Source:- India.Com

Category: News, Seventh Pay Commission

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