7th Pay Commission Allowances: HRA Could Be Hiked, Other Developments
The Union Council of Ministers could make proposals on the payment of a seventh indemnity (including HRA) next week, Shiv Gopal Mishra, the leader of the Joint National Action Council (NJCA), told NDTV. The labor union leader also said that there was a possibility of a higher housing allowance HRA than the one recommended by the Commission to pay seventh. HRA accounts for most of the total compensation.
The Union Cabinet on Wednesday has not reviewed proposals for seventh pay compensation, including HRA because it was not part of the meeting’s agenda, NDTV reported. Finance Minister Arun Jaitley makes an official visit to South Korea. The Joint National Action Council (NJCA) is a common body of unions representing central government employees.
Almost 50 lakh of central government employees could get revised compensation under the seventh compensation commission, including rent subsidy or HRA home in July, told Financial Express last week. The report, which cites sources, also said that the Cabinet may decide to allocate compensation 7 this month. The report also notes that the government can approve an HRA that is higher than that recommended by the Seventh Payment Commission.
The Lavasa Ashok Committee, which considers the recommendations of the seventh compensation compensation, submitted its report to the Minister of Finance on 27 April. A committee in charge of secretaries was created to examine the report and proposal to the Council of Ministers.
Lavasa The committee suggested changes in certain allowances universally applicable to all employees and other benefits that apply to specific categories of employees, the Finance Ministry said in a statement. Economists say the disbursement of the seventh compensation payments should give a new boost to consumer spending and thus the economy.
The Reserve Bank has reported, however, upside risks to inflation since the disbursement of revisions to the payment of a seventh indemnity. “At present, the overall political and financial risks that materialize in imported inflation and the disbursement of compensation under the seventh central clearing fund are upside risks.
The date of application of the latter has not yet been announced and as such is not taken into account in the benchmark projections, “the RBI said in its latest monetary policy statement last week.
The government last year agreed on the recommendation of the Commission of the seventh compensation by the Ministry of Justice AK Mathur regarding the increase of the remuneration and the basic pension. The Commission’s recommendations for seventh payment in respect of compensation refer to the committee of Ashok Lavasa.
The seventh compensation committee had recommended that the rental house allowance be paid at 24 percent, 16 percent and 8 percent of the new basic salary, depending on the city.
The seventh compensation committee also recommends that the HRA speed be reviewed at 27 percent, 18 percent, and 9 percent when the DA or cancer assignment crosses 50 percent and reviewed at 30 percent, 20 percent, and 10 Percent when passed through 100 percent. As for compensation, the employee unions demanded the HRA at the rate of 30 percent, 20 percent and 10 percent.
The seventh compensation committee had recommended a total of 196 payments, 52 and 36 withdrawals are withdrawn as separate identities through their inclusion in other compensation.