Central government employees to get HRA up to 178 per cent, FMA at Rs 2000 per month

Central government employees to get HRA up to 178 per cent, FMA at Rs 2000 per month

New Delhi, April 28: On Thursday evening ‘Committee on Allowance’ submitted its final report to Finance Minister Arun Jaitley. For 43 lakh central government employees and 57 lakh pensioners the 10-month long wait is finally over as the Narendra Modi government is all set to take a final call on ‘higher allowances’ and many other allowances under the 7th Pay Commission in next few days. According to a Zee News report, the Narendra Modi government is expected to announce a maximum House Rent Allowance (HRA) hike of up to 178 per cent for Central Government employees. There are also high chances that the Fixed Medical Allowance (FMA) can be increased from Rs 500 to Rs 2000 per month, a source within the employees union said to India.com on condition of anonymity.

A high-level committee headed by Finance Secretary Ashok Lavasa was appointed last year in June after the recommendations made by the 7th Pay Commission was implemented. The committee was given a task to submit its reports on allowances and minimum wage, which had become a concern for a large number of central government employees.

According to sources of Zee News, the Lavasa committee on allowances has given its view in favour of employees by not recommending against altering the existing HRA rates.

A top union official said, “the Lavasa committee in its recommendations has advised the Union Government to increase Fixed Medical Allowance (FMA) from Rs 500 to Rs 2,000 per month”. 

For a large number of central government employees, one of the major concern was the 7th Pay Commission recommendation of decreasing the HRA by 2-6 per cent depending on the type of cities.

As the final report has now been submitted to the Finance Minister Arun Jaitley now it will be examined by the Empowered Committee of Secretaries (ECS) and following that it will be placed before the Union Cabinet for further approval. Some reports suggest that government may clear arrears and dues of central government employees by the first week of May.

The proposal will benefit over 47 lakh central government employees and 53 lakh pensioners. The allowances from a sizeable amount of the salary drawn by a government employee. If the recommendations made by 7th Pay Commission on allowances are implemented completely, then as per a rough estimate the cost to the exchequer will be Rs 29,300 crore.

The Ashok Lavasa committee was constituted in June last year, a week after the government implemented the recommendations of the 7th Pay Commission.

Source: India.com