Know how
more than 48 lakh central government employees will start getting maximum HRA
hike (House Rent Allowance) of 157 percent from July month salary.
7th Pay
Commission: Higher
allowances from this month salary; govt employees to get maximum HRA hike of
157%
New
Delhi: More
than 48 lakh central government employees will start getting HRA (House Rent
Allowance) hike in range of 106 percent to 157 percent from this month (July,
2017) salaries as the Union Cabinet chaired by the Prime Minister Narendra Modi
on last Wednesday approved the recommendations of the 7th CPC on allowances
with some modifications.
While
approving the recommendations of the 7th CPC on 29th June, 2016, the Cabinet
had decided to set up the Committee on Allowances (CoA) in view of substantial
changes in the existing provisions and a number of representations received.
7th Pay
Commission on allowances: Where govt employees will get maximum HRA- check out city-wise
The
modifications are based on suggestions made by the CoA in its Report submitted
to Finance Minister on 27th April, 2017 and the Empowered Committee of
Secretaries set up to screen the recommendations of 7th CPC.
“HRA is
currently paid @ 30% for X (population of 50 lakh & above), 20% for Y (5 to
50 lakh) and 10% for Z (below 5 lakh) category of cities. 7th CPC has
recommended reduction in the existing rates to 24 percent for X, 16 percent for
Y and 8 percent for Z category of cities,” the government said in a statement
|
Population
of city
|
DA
above
|
|||
|
Present
|
Proposed
|
50%
|
100%
|
|
|
Above
50 lakh (Class X)
|
30%
|
24%
|
27%
|
30%
|
|
5 lakh
to 50 lakh (Class Y)
|
20%
|
16%
|
18%
|
20%
|
|
Below 5
lakh (class Z)
|
10%
|
8%
|
9%
|
10%
|
“As the
HRA at the reduced rates may not be sufficient for employees falling in lower
pay bracket, it has been decided that HRA shall not be less than Rs 5,400, Rs
3,600 and Rs 1,800 for X, Y and Z category of cities respectively. This floor
rate has been calculated @ 30%, 20% and 10% of the minimum pay of Rs 18,000.
This will benefit more than 7.5 lakh employees belonging to Levels 1 to 3,” it
added.
“7th CPC
had also recommended that HRA rates will be revised upwards in two phases to
27%, 18% and 9% when DA crosses 50% and to 30%, 20% and 10% when DA crosses
100%. Keeping in view the current inflation trends, the Government has decided
that these rates will be revised upwards when DA crosses 25% and 50%
respectively. This will benefit all employees who do not reside in government
accommodation and get HRA,” it said.
|
Population
of city
|
DA
above
|
|||
|
Present
|
Proposed
|
50%
|
100%
|
|
|
Above
50 lakh (Class X)
|
30%
|
24%
|
27%
|
30%
|
|
5 lakh
to 50 lakh (Class Y)
|
20%
|
16%
|
18%
|
20%
|
|
Below 5
lakh (class Z)
|
10%
|
8%
|
9%
|
10%
|
Net impact on HRA
As the
Cabinet has accepted the recommendations of A K Mathur-led 7th Pay Commission
on allowances so the HRA component of central government employees will
increase ranging between 122 percent and 157 percent.
Take, for
instance, a central government employee at the very bottom of the pay scale,
where the basic pay (pay of pay band + grade pay) is now Rs 7,000, would
currently be entitled to an HRA of Rs 2,100 in a Class X city. As per 7th Pay
Commission, the new entry level pay at this level is Rs 18,000 per month
against which the new HRA for a Class X city would be Rs 5,400 per month, that
is 157 percent more than the existing level.
Similarly,
at the highest level of the pay scale, the Cabinet Secretary and officers of
the same rank have a basic pay of Rs 90,000, which means they are entitled to
current HRA of Rs 27,000 in Class X towns. After the revised pay scale, the new
basic pay is Rs 2.5 lakh, for which the HRA would be Rs 60,000, meaning a hike
of 122 percent.
|
Existing Basic Pay (6 th) CPC |
HRA (6 th CPC )
|
Entry
Pay as per 7 th CPC
|
Revised
HRA as per 7 th CPC (after Cabinet approval)
|
|||||
|
Class X
|
Class Y
|
Class Z
|
Class X
|
Class Y
|
Class Z
|
|||
|
7000
|
2100
|
1400
|
700
|
18000
|
5400
|
3600
|
1800
|
|
|
13500
|
4050
|
2700
|
1350
|
35400
|
8496
|
5664
|
2832
|
|
|
21000
|
6300
|
4200
|
2100
|
56100
|
13464
|
8976
|
4488
|
|
|
46100
|
13830
|
9220
|
4610
|
118500
|
28440
|
18960
|
9480
|
|
|
90000
|
27000
|
18000
|
9000
|
250000
|
60000
|
40000
|
20000
|
|
As far as
other allowances are concerned, the Union Cabinet has decided not to abolish 12
of the 53 allowances which were recommended to be abolished by the 7th CPC.
“The
decision to retain these allowances has been taken keeping in view the specific
functional requirements of Railways, Posts and Scientific Departments such as
Space and Atomic Energy. It has also been decided that 3 of the 37 allowances
recommended to be subsumed by the 7th CPC will continue as separate identities.
This has been done on account of the unique nature of these allowances,” as per
the govt statement.
“The
rates of these allowances have also been enhanced as per the formula adopted by
the 7th CPC. This will benefit over one lakh employees belonging to specific
categories in Railways, Posts, Defence and Scientific Departments,” it said.
