7th CPC: Know the revised HRA and expected hike by Cabinet

7th CPC: Know the revised HRA and expected hike by Cabinet

Much awaited event for central government employees seems to scour. It is assumed that the central government employees can't be left to feel disappointed with the final report of revised allowances recommended by the 7th Central Pay Commission that is going to be approved by the cabinet very soon. Empowered Committee of Secretaries (E-CoS) is now to Scan 7th CPC recommendations report submitted by Lavasa Committee, placing before the Cabinet Approval.

Now moving to the most important point: One should know what exactly is the increment in his Salary and revised allowances, if government approves the revised/enhanced. Although it may differ  due to effective date of revised allowance from 01.01.2016 or 01.08.2016 or the month after the approval of report of allowances committee, but at the same time the paramnews.com team has analyzed report of revised allowances recommended by the 7th Central Pay Commission alongwith demand of employees union and effective date of revised allowance.

The following bar graphs Table to show the allowances form a sizeable amount of the salary drawn by a government employee. The details of allowances recommended by 7th CPC, and as union's demand and the difference between them.

The allowances form a sizeable amount of the salary drawn by a government employee as recommended by 7th CPC. 

Pay Band	Grade Pay	7th  CPC  Pay Matrix	Minimum  Pay	Maximum Pay	Recommended by 7th CPC
					X Class City		Y Class City		Z Class City
					24%	24%	16%	16%	9%	9%
					Minimum  HRA	Maximum HRA	Minimum  HRA	Maximum HRA	Minimum HRA	Maximum HRA
PB-1  5200- 20200	1800	1	18000	56900	4320	13656	2880	9104	1620	5121
	1900	2	19900	63200	4776	15168	3184	10112	1791	5688
	2000	3	21700	69100	5208	16584	3472	11056	1953	6219
	2400	4	25500	81100	6120	19464	4080	12976	2295	7299
	2800	5	29200	92300	7008	22152	4672	14768	2628	8307
PB-2  9300- 34800	4200	6	35400	112400	8496	26976	5664	17984	3186	10116
	4600	7	44900	142400	10776	34176	7184	22784	4041	12816
	4800	8	47600	151100	11424	36264	7616	24176	4284	13599
	5400	9	53100	167800	12744	40272	8496	26848	4779	15102
PB-3  15600- 39100	5400	10	56100	177500	13464	42600	8976	28400	5049	15975
	6600	11	67700	208700	16248	50088	10832	33392	6093	18783
	7600	12	78800	209200	18912	50208	12608	33472	7092	18828
PB-4 37400- 66700	8700	13	118500	214100	28440	51384	18960	34256	10665	19269
	8900	13A	131100	216600	31464	51984	20976	34656	11799	19494
	10000	14	144200	218200	34608	52368	23072	34912	12978	19638
67000-79000		15	182200	224100	43728	53784	29152	35856	16398	20169
67000-79000		16	205400	224400	49296	53856	32864	35904	18486	20196
80000		17	225000	225000	54000	54000	36000	36000	20250	20250
90000		18	250000	250000	60000	60000	40000	40000	22500	22500

The allowances form a sizeable amount of the salary drawn by a government employee as union's demand.

Pay Band	Grade Pay	7th  CPC  Pay Matrix	Minimum  Pay	Maximum Pay	Union's Demand
					X Class City		Y Class City		Z Class City
					30%	30%	20%	20%	10%	10%
					Minimum  HRA	Maximum HRA	Minimum  HRA	Maximum HRA	Minimum HRA	Maximum HRA
PB-1  5200- 20200	1800	1	18000	56900	5400	17070	3600	11380	1800	5690
	1900	2	19900	63200	5970	18960	3980	12640	1990	6320
	2000	3	21700	69100	6510	20730	4340	13820	2170	6910
	2400	4	25500	81100	7650	24330	5100	16220	2550	8110
	2800	5	29200	92300	8760	27690	5840	18460	2920	9230
PB-2  9300- 34800	4200	6	35400	112400	10620	33720	7080	22480	3540	11240
	4600	7	44900	142400	13470	42720	8980	28480	4490	14240
	4800	8	47600	151100	14280	45330	9520	30220	4760	15110
	5400	9	53100	167800	15930	50340	10620	33560	5310	16780
PB-3  15600- 39100	5400	10	56100	177500	16830	53250	11220	35500	5610	17750
	6600	11	67700	208700	20310	62610	13540	41740	6770	20870
	7600	12	78800	209200	23640	62760	15760	41840	7880	20920
PB-4  37400- 66700	8700	13	118500	214100	35550	64230	23700	42820	11850	21410
	8900	13A	131100	216600	39330	64980	26220	43320	13110	21660
	10000	14	144200	218200	43260	65460	28840	43640	14420	21820
67000-79000		15	182200	224100	54660	67230	36440	44820	18220	22410
67000-79000		16	205400	224400	61620	67320	41080	44880	20540	22440
80000		17	225000	225000	67500	67500	45000	45000	22500	22500
90000		18	250000	250000	75000	75000	50000	50000	25000	25000

The difference of allowances between 7th CPC recommendations and union's demand.

Pay Band	Grade Pay	7th  CPC  Pay Matrix	Minimum  Pay	Maximum Pay	Difference
					X Class City		Y Class City		Z Class City
					30%	30%	20%	20%	10%	10%
					Minimum  HRA	Maximum HRA	Minimum  HRA	Maximum HRA	Minimum HRA	Maximum HRA
PB-1  5200- 20200	1800	1	18000	56900	1080	3414	720	2276	180	569
	1900	2	19900	63200	1194	3792	796	2528	199	632
	2000	3	21700	69100	1302	4146	868	2764	217	691
	2400	4	25500	81100	1530	4866	1020	3244	255	811
	2800	5	29200	92300	1752	5538	1168	3692	292	923
PB-2  9300- 34800	4200	6	35400	112400	2124	6744	1416	4496	354	1124
	4600	7	44900	142400	2694	8544	1796	5696	449	1424
	4800	8	47600	151100	2856	9066	1904	6044	476	1511
	5400	9	53100	167800	3186	10068	2124	6712	531	1678
PB-3  15600- 39100	5400	10	56100	177500	3366	10650	2244	7100	561	1775
	6600	11	67700	208700	4062	12522	2708	8348	677	2087
	7600	12	78800	209200	4728	12552	3152	8368	788	2092
PB-4 37400- 66700	8700	13	118500	214100	7110	12846	4740	8564	1185	2141
	8900	13A	131100	216600	7866	12996	5244	8664	1311	2166
	10000	14	144200	218200	8652	13092	5768	8728	1442	2182
67000- 79000		15	182200	224100	10932	13446	7288	8964	1822	2241
75000- 79000		16	205400	224400	12324	13464	8216	8976	2054	2244
80000		17	225000	225000	13500	13500	9000	9000	2250	2250
90000		18	250000	250000	15000	15000	10000	10000	2500	2500

The committee on allowances headed by Finance Secretary Ashok Lavasa that was set up to review the recommendations of the Seventh Pay Commission is understood to have finalised its report. Now after review of empowered committee the report will be placed before the cabinet.

The 7th Pay Commission 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).

Assumingly, if the Committee accepts the bare recommendations of A K Mathur-led 7th Pay Commission then the HRA component of central government employees will increase ranging between 106 percent and 122 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 4,320 per month, that is 106 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.

At present, there are as many as 43 lakh central government employees and 53 lakh pensioners who are covered for perks and bonuses under the recommendations of 6th Pay Commission that will soon be replaced by 7th Pay Commission.