7th Pay Commission: Decision on Central govt employees’ HRA on June 28
New Delhi: The Narendra Modi government is likely to take final decision on House Rent Allowances (HRA) for the central government employees on June 28 putting an end to the year-long wait of the employees.
The Empowered Committee of Secretaries (E-CoS), which was set up to screen the Lavasa panel recommendations on allowances, has already submitted its proposal to the Cabinet for approval.
As per reports, the final call of the Cabinet on June 28 will enable the central government employees to get revised allowances from July.
The E-CoS has reportedly, in the report, favoured a decrease in HRA by 2-6 percent depending on type of cities.
It is worth mentioning that the AK Mathur-led committee had also proposed the same in its 7th Pay Commission report. It had recommended HRA of 24 percent of the Basic Pay for Class X cities while 16 percent and 8 percent of the Basic Pay for Class Y and Z cities respectively.
Currently, the HRA rate for Class X, Y and Z cities are 30 percent, 20 percent and 10 percent of the Basic pay.
Meanwhile, if the Cabinet accepts the recommendations of A K Mathur-led 7th Pay Commission then the central government employees get HRA ranging from 106 percent to 122 percent. And if it retains the 6th Pay Commission HRA then the HRA will increase ranging from 157 percent to 178 percent.