7th Pay Commission: HRA likely to remain at 30 per cent, suspense continues on arrears

7th Pay Commission: HRA likely to remain at 30 per cent, suspense continues on arrears

New Delhi, June 16: The Union Council of Ministers, which is likely to address issues related to increased compensation under the Seventh Payment Commission, may maintain the rental or home rent subsidy for 30 percent .

But there is no clarity about the delays in the higher allocations required by central government employees. The reduction of the HRA by the seventh Payment Commission was one of the main concerns raised by central government employees, after which the compensation committee was formed.

Finance Secretary Ashok Lavasa led the Compensation Committee would have suggested keeping the HRA rate at 30 percent, 20 percent and 10 percent of base salary, contrary to the recommendation of the 7-Pay Commission. HRA accounts for about 60 percent of the total bill to be paid.

The Seventh Pay Commission suggests maintaining the HRA rate at 24 percent, 16 percent, and 8 percent of base salary for Class X, Y and Z cities respectively. However, central government employees are asking them to keep the HRA rate at 30%, 20% and 10% of base salary in accordance with the sixth payment commission. Recent reports have suggested that the government is willing to accept the implementation of the HRA. However, there is no official confirmation.

Shiv Gopal Mishra, director of the National Mixed Action Council (NJCA), leading negotiations for the seventh Commission on Payments with the Government, speaking with NDTV, said that there was a possibility of HRA higher than that recommended by the Payment Commission seventh. However, a report in the Financial Express said that the HRA in cities of between 5 million of the population could be 27 percent of the base salary. The next cabinet meeting will be crucial because the government is more likely to clarify proposals for higher allocations under the Seventh Payment Commission.

Although central government employees have received their salaries reviewed by Commission 7 for payment, the reduction of the highest benefits have not been paid since July last year. Central government employees also demanded delays in the highest benefits, but the government has neither accepted nor rejected their request.

The Seventh Payment Commission has recommended a 14.27% increase in the basic salary for central government employees, the lowest in 70 years, and suggested the elimination of 52 of the 196 existing allocations, out of 36 smaller allocations. The Lavasa Ashok Committee, which considers Commission recommendations 7 on payment of compensation, submitted its report to Finance Minister Arun Jaitley on 27 April.

A Committee on Secretaries (COS-E) was created to examine the report and proposal to the Council of Ministers. The E-CoS has also submitted its proposals to the Council of Ministers….

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