7th Pay Commission: Government to Hike more HRA than recommended

| June 17, 2017


New Delhi: Under pressure from the unions, the government may increase the House Rent Allowance (HRA) of central government employees from 24, 16 and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.

Shiv Gopal Mishra, the convenor of National Joint Council of Action (NJCA) has said that the government could increase the HRA to more than what the 7th pay commission has recommended.

The National Joint Council of Action (NJCA), a confederation of several central government employees’ unions.

It claims a membership of 3.3 million, including workers of Indian Railways, the country’s largest employer.

Mishra said HRA and other allowance matters could finally be discussed in next meeting of the Empowered Committee of Secretaries (E-CoS) headed by Cabinet Secretary P K Sinha as Finance Minister Arun Jaitley would be back from his ongoing visit to South Korea.

The 7th Pay Commission recommended slashing the House Rent Allowance (HRA) from 30, 20 and 10 per cent to 24, 16 and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.

The 7th Pay Commission also recommended abolition of 52 allowances and subsuming of another 36 allowances into larger existing ones out of total 196 allowances.

The central government employees opposed the recommendations on allowances including HRA made by the 7th pay commission, which government complied with formation of the Committee on Allowances headed by Finance Secretary Ashok Lavasa in June 2016 to review the allowances and the government approved the pay hike under the 7th Pay Commission recommendations on that time with effect from January 1, 2016 .

The Committee on Allowances submitted its report to Finance Minister Arun Jaitley on April 27.

The report was then taken up by the Department of Expenditure for examination, following which it was passed on to the Empowered Committee of Secretaries.

The Empowered Committee of Secretaries is in the process of preparing the Cabinet note on higher allowances.


Category: News, Seventh Pay Commission

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