7th Pay Commission: Additional HRA bonanza for more than 7.5 lakh govt employees- know how it will benefit them

7th Pay Commission: Additional HRA bonanza for more than 7.5 lakh govt employees- know how it will benefit them

 

additional hra bonanza

7th Pay Commission: Additional HRA bonanza for more than 7.5 lakh govt
employees- know how it will benefit them

Know how more than 7.5 lakh employees belonging to Levels 1 to 3 in the pay
matrix will be benefitted, owing to fixation of minimum HRA. 
New Delhi: More than 7.5 lakh central government employees belonging to
Levels 1 to 3 in the pay matrix will get minimum HRA (House Rent Allowance)
of Rs 5,400, Rs 3,600 and Rs 1,800 for X, Y and Z category of cities
respectively. 

“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,” the government said in a statement.
The table below elaborates how more than 7.5 lakh employees belonging
to Levels 1 to 3 in the pay matrix will be benefitted owing to fixation
of minimum HRA. 
 
Pay Matrix X (Minimum Rs 5,400) Y (Minimum Rs 3,600) Z (Minimum Rs 1,800)
Level 1- 18,000 Rs 4320 (+1,080) Rs 2880 (+ 720) Rs 1440 (+360)
Level 2- 19,900 Rs 4776 (+624) Rs 3184 (+416) Rs 1592 (+208)
Level 3- 21,700 Rs 5208 (+192) Rs 3472 (+128) Rs 1736 (+64)
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. 
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. 
“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,” as per govt statement.
As per recommendation of AK Mathur Panel
 
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%
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 had recommended reduction in the existing rates to 24 percent for X, 16
percent for Y and 8 percent for Z category of cities. 

As per modification in AK Mathur recommendation, cleared by Union
Cabinet 
 
Population of City DA above
Present Proposed 25% 50%
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 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. 
donot forget to activate the email subscription
Read also :  CGDA Clarification: Procedure for release of funds for condiment expenditure - seeking of nominal rolls with individual signatures.

COMMENTS