7th CPC Impact: Post Pay Commission Allowance Roll-out, Central Govt Employees Miffed With Reduction in HRA & No Arrears on Allowances

The government delayed the release of higher allowances under the 7th Pay Commission for a year, which has left central government employees frustrated.

New Delhi, July 21: Prime Minister Narendra Modi-led government has notified higher allowances under 7th Pay Commission or 7th CPC, but the central government employees are reportedly unhappy with the benefits. There is widespread resentment among central government employees after the government reduced house rent allowance or HRA and didn’t announce to pay arrears on higher allowances under the 7th Pay Commission. The government delayed the release of higher allowances under the 7th Pay Commission for a year, which has left central government employees frustrated.

Central government employees are deeply annoyed at little allowances hike without arrears after the government approved revised allowances as per the 7th Pay Commission’s recommendations, reported Sen Times. After delaying the matter for 12 months, the government remained stick to with the 7th Pay Commission’s recommendations on allowances. Reduction in HRA and minimum pay under the 7th Pay Commission had been the major bone of contention among majority of the central government employees. They had also demanded arrears on higher allowances.

The central government employees had received arrears on hiked basic pay under the pay panel in August 2016, effective from January 1, 2016. The government made employees to wait for a year for higher allowances, but it is in no mood to compensate them, which has left central government employees fuming.

Central government employees demanded to keep HRA at the rate of 30 per cent, 20 per cent and 10 percent of basic pay. But the government approved 7th Pay Commission recommendations for reduction in the HRA rates to 24 per cent for X, 16 per cent for Y and 8 per cent for Z category of cities, which comes into effect from July 1, 2017. As the HRA at the reduced rates may not be sufficient for employees falling in the 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.

The 7th pay commission had submitted its report to Finance Minister Arun Jaitley in November, 2015. The commission had recommended a 14.28% increase in basic pay and the government went with ditto to it. According to reports, there is huge resentment among the central government employees over little allowances hike without arrears. The employees are annoyed with the government over low hike in basic pay as well.