7th Pay Commission: Hopes High On HRA As Allowance Committee Meets Soon

7th Pay Commission: Hopes High On HRA As Allowance Committee Meets Soon

The government had in June accepted the recommendation of Justice AK Mathur-headed Seventh Pay Commission in respect of the hike in basic pay and pension.

The 7th Pay Commission had recommended that the rate of HRA be revised to 27%, 18% and 9%.

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With the allowance committee on 7th pay commission recommendations set to meet this week, hopes are high the panel will finalise its views on HRA or house rent allowance. A top employee union official said the allowance committee examining the 7th pay commission's recommendations on HRA, among others, is likely to hold meeting later this week. Union officials had earlier met the Cabinet Secretary seeking early finalisation of allowances. News agency Press Trust of India had earlier reported that the allowance committee is likely to decide on the HRA at its next meeting. The allowance committee had at its meeting on March 28 had sought comments from the ministries of defence, railways and posts on treatment of 14 allowances, the report said.

The Seventh Pay Commission had recommended that HRA be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay, depending on type of cities. The 7th Pay Commission had also recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent, respectively when DA crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when DA crosses 100 per cent.

With regard to allowances, employee unions have demanded HRA (house rent allowance) at the rate of 30 per cent, 20 per cent and 10 per cent. The Seventh Pay Commission had recommended that HRA be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay, depending on type of cities.

The government had in June accepted the recommendation of Justice AK Mathur-headed Seventh Pay Commission in respect of the hike in basic pay and pension. But the 7th pay commission's recommendations relating to allowances were referred to the Ashok Lavasa committee. The Seventh Pay Commission had examined a total of 196 existing allowances and recommended abolition of 51 allowances and subsuming of 37 allowances.

Minister of State for Finance Arjun Ram Meghwal on March 24 again clarified that the allowance committee related to 7th pay commission is yet to submit its report. The minister added that the allowance committee is now in the process of finalising its report. The minister also explained why the allowance committee has taken more time to finalise its report. The allowance committee related to 7th pay commission awards "has taken more time than was initially prescribed in view of large number of demands received," he clarified.