7th Pay Commission: Cabinet may make HRA and other allowances

7th Pay Commission: Cabinet may make HRA and other allowances announcement soon
7th Pay Commission: Cabinet may make HRA and other allowances announcement soon


A man shows Rs 2000 rupee currency note at a Kolkata market on Nov 10, 2016. Photo: IANS


Union Cabinet is expected to hold meeting today to discuss allowance and HRA

Last week E-CoS read higher allowance report under 7th Pay Commission
Committee on Allowances has recommended HRA between 25%-27% as against 30%, which was demanded by central government employees
7th Pay Commission's view on allowances may be resolved today as the Cabinet is likely announce its decision on issues related to salary hike, house rent allowance (HRA), Dearness Allowance (DA) and Transport Allowance (TA).

ALSO READ: 7th Pay Commission: Cabinet may announce decision this week; HRA capped at 27%

The Committee on Allowances headed by Finance Secretary Ashok Lavasa has suggested capping HRA at 25%-27% as against demands of 30%.

7th CPC had recommended house rent allowance (HRA) to be paid at the rate of 24%, 16% and 8% of the new Basic Pay, depending on the type of cities.


Another recommendation which is likely to be discussed is related to the change in accounting period. Out of 196 allowances, the 7th Pay Commission report had recommended abolition of 52 and subsuming of another 36 into larger existing ones.

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