7th pay commission: HRA to be revised under 7 CPC, Lavasa committee recommendations; Key highlights


7th pay commission: HRA to be revised under 7 CPC, Lavasa committee
recommendations; Key highlights. The committee is also considering revising the rates in accordance to the Dearness Allowance that is paid to the employees.***New Delhi, April 14:
Major changes are could be made to the salaries of central government
employees, with the Ashok Lavasa committee all set to submit its
recommendations for changes in allowances under the

seventh pay commission.

While the committee is looking at abolishing or subsuming various
allowances, it is particularly focused on revising the current rates of the
House Rent Allowance (HRA).

7th pay commission: HRA to be revised under 7 CPC, Lavasa committee
recommendations; Key highlights.

The committee is also considering revising the rates in accordance to the
Dearness Allowance that is paid to the employees.

New Delhi, April 14:
Major changes are could be made to the salaries of central government
employees, with the Ashok Lavasa committee all set to submit its
recommendations for changes in allowances under the

seventh pay commission.

While the committee is looking at abolishing or subsuming various
allowances, it is particularly focused on revising the current rates of the
House Rent Allowance (HRA). 
The House Rent Allowance (HRA) is paid by the government to all the
employees as a fixed amount that goes towards their accommodation needs.
With central government employees often having to move around the country
due to transfers, the HRA plays a crucial role. However, the sum is given
even if the employee is living in his/her own house. 
The HRA forms a significant amount of an employees’ salary and currently
constitutes about 30 percent of the same i metro cities. However, the
Lavasa committee is looking at reducing the rate to 24 percent in metros, a
move that has not particularly gone well. 


The seventh pay commission has recommended that the HRA be extended


according to the type of city an employee is living in. As per the
classification, cities have been segregated into three classes; X, Y and Z.
Here is the complete list of cities and the class under which they belong: 
Class of city (X,Y or Z) Name of city
X
Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata,
Mumbai, Pune
Y
Agra, Ajmer, Aligarh, Allahabad, Amravati, Amritsar,
Asansol, Aurangabad, Bareilly, Belgaum, Bhavnagar,
Bhiwandi, Bhopal, Bhubaneswar, Bikaner, Bokaro Steel City,
Chandigarh, Coimbatore, Cuttack, Dehradun, Dhanbad,
Durg-Bhilai Nagar, Durgapur, Erode, Faridabad, Firozabad,
Ghaziabad, Gorakhpur, Gulbarga, Guntur, Gurgaon, Guwahati,
Gwalior, Hubli-Dharwad, Indore, Jabalpur, Jaipur,
Jalandhar, Jammu, Jamnagar, Jamshedpur, Jhansi, Jodhpur,
Kannur, Kanpur, Kakinada, Kochi, Kottayam, Kolhapur,
Kollam, Kota, Kozhikode, Kurnool, Lucknow, Ludhiana,
Madurai, Malappuram, Malegaon, Mangalore, Meerut,
Moradabad, Mysore, Nagpur, Nashik, Nellore, Noida, Patna,
Pondicherry, Raipur, Rajkot, Rajahmundry, Ranchi, Rourkela,
Salem, Sangli, Siliguri, Solapur, Srinagar, Surat,
Thiruvananthapuram, Palakkad, Thrissur, Tiruchirappalli,
Tiruppur, Ujjain, Vadodara, Varanasi, Vasai-Virar City,
Vijayawada, Visakhapatnam, Warangal
Z
All other cities in all states and union territories.

The Ashok Lavasa committee has devised a detailed analysis of the required
HRA on the basis of the cost of living in cities according to the above
classification. It has suggested that, for central government employees
residing in metros, the HRA be paid at a rate of 24 per cent, 16 per cent
and 8 per cent of the current basic pay.

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Class of Cities or Towns
HRA rates as % of Basic Pay (including MSP and NPA)
X 24%
Y 16%
Z 8%

Further, the committee is also considering revising the rates in accordance
to the Dearness Allowance that is paid to the employees. The DA is the sum
paid to employees to make their adjustments in new cities more
comfortable.The committee has suggested that wherever the Dearness
Allowance crosses 50 percent, the HRA be given at a rate of 27 per cent, 18
per cent and 9 per cent.

Class of Cities or Towns
HRA rates as % of Basic Pay (including MSP and NPA)
X 27%
Y 18%
Z 9%
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However, if the Dearness Allowance crosses 100 percent of the basic pay,
the suggested House Rent Allowance (HRA) rates are 30 per cent, 20 per cent
and 10 per cent.

Class of Cities or Towns
HRA rates as % of Basic Pay (including MSP and NPA)
X 30%
Y 20%
Z 10%


 

The final report of the Ashok Lavasa committee is expected to come
out by April 18.


Apart from revising the HRA rates, the committee will also suggest the
subsuming or abolition of various allowances such as acting, assisting
cashier, cycle, condiment, flying squad, haircutting, rajbhasha, rajdhani,
robe, shoe, shorthand, soap, spectacle, uniform, vigilance and washing
allowance.

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Source : http://www.india.com

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