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Wednesday, August 31, 2016

No indication of percentile increase in HRA, transport allowances

According to sources, the committee examining the suggestions of the 7th Pay Commission on allowances, is unlikely to make changes of percentage in house rent allowance (HRA).

The committee, headed by Finance Secretary Ashok Lavasa to examine the suggestions of the 7th Pay Commission on allowances, is working to make the new allowances structure keeping in mind the inflation. According to sources, the committee examining the suggestions of the 7th Pay Commission on allowances, is unlikely to make changes of percentage in house rent allowance (HRA). The committee will consider the high cost of housing rent in cities and charges of medical and other facilities before submitting its report on suggestions of the 7th Pay Commission on allowances structure.
According to the sources in the Finance Ministry, issues like inflation, the government’s financial position and new salary structure of central government employees would be examined before submitting the report on new allowances. The committee won’t make any change in the existing house rent allowance (HRA) percentage. (ALSO READ: 7th Pay Commission: NJCA to pitch for 3.68 fitment factor to revise minimum pay in meeting with National Anomaly Committee)
It means, central government employees living in ‘X’ class cities like Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune, will get 30 percent of their pay matrix as house rent allowance (HRA), no increasing from the existing 30 percent, reported the Sen Times. Employees posted at ‘Y’ class cities covers near about 90 stations, will receive 20 percent of pay matrix, at the existing percentage. The HRA in ‘Z’ class cities will be 10 per cent.
The 7th Pay Commission had 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 committee will not propose to increase the rate of transport allowances of central government employees and it will be as per the recommendations of the 7th Pay Commission, said sources.
The government formed a committee headed by Finance Secretary Ashok Lavasa and Secretaries of Home Affairs, Defence, Health and Family Welfare among others as its members on July 22 for examination of the recommendations of 7th Pay Commission on allowances. The 7th Pay Commission headed by Justice A K Mathur had recommended abolition of 51 allowances and subsuming 37 others after examining 196 allowances. The committee is likely to submit its report by September and from October government employees are likely to get their revised allowances.
The government in July issued the notification for the implementation of the 7th Pay Commission recommendations. The 7th Pay Commission notification confirmed that central government employees 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The Cabinet also approved the increase in minimum pay Rs 18,000 from existing Rs 7,000. Many government employees are unhappy as the requested minimum wage was increased to Rs 18,000 and the demand was made of Rs 26,000. More than 47 lakh Central Government employees and 53 lakh pensioners have been eagerly waiting for implementation of 7th Pay Commission.

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