7TH PAY BHATHA RELATED IMPORTANT NEWS REPORT MUST READ
The 7th Pay Commission headed by AK Mathur had earlier proposed the rate of House Rent Allowance (HRA) at 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.
The Commission had also recommended that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.
The existing rates of HRA for Class X, Y and Z cities and towns are 30 percent, 20 percent and 10 percent of Basic pay (pay in the pay band plus grade pay)
Revised allowances including house rent allowance (HRA) will likely be announced for the central government staff after the ongoing Budget session of Parliament is over on April 12. The finance secretary-led panel, which is giving final touches to the reworked allowances based on the 7th pay panel’s recommendations, will hold its final meeting shortly, sources told FE. The panel met for over three hours on Wednesday to deliberate on the subject. “Decisions are broadly taken on allowances pending a final review. But these will be announced only after current Budget session ends on April 12 to avoid any controversy,” another source said. In the case of the employees in metro cities, the panel was considering to make HRA a little more generous than the CPC’s award. Taking note of employees’ representations, the finance secretary-led panel was looking at HRA of 30% of basic pay for those in cities with a population of over 5 million, against 24% recommended by CPC. In the Sixth CPC award period (2006-2015), HRA was 30% for these cities. HRA accounts for about 60% of the total allowances bill.
