The Union Cabinet last month approved recommendations of the 7th pay commission with 34 modifications, which will mean an additional annual burden of Rs. 30,748 crore on the exchequer.
The central ministries have been asked to pay revised rates of allowances, including HRA, to their employees as per the 7th Central Pay Commission (CPC) from July. It will benefit 34 lakh civilian employees and 14 lakh defence personnel. This follows a directive from the finance ministry, which said: “The ministries concerned have now been advised to issue their Orders on Allowances governed by them immediately so that the revised rates of allowances get reflected in the current month’s salary bills of the government employees.”
The Union Cabinet had last month approved recommendations of the 7th pay commission with 34 modifications, which will mean an additional annual burden of Rs. 30,748 crore on the exchequer. The central government’s decision on revised allowances has already been notified. It has been published by the Finance Ministry in Gazette of India.
Here are the details of revised HRA, which constitutes a big part of allowances, as notified:
HRA shall not be less than Rs. 5,400 per month, Rs. 3,600 per month and Rs. 1,800 per month calculated @30 per cent of minimum pay for X (population of 50 lakh & above), 20 per cent for Y (5 to 50 lakh) and 10 per cent for Z (below 5 lakh) category of cities.
HRA shall be revised to 27 per cent, 18 per cent & 9 per cent of Basic Pay in X,Y & Z cities when Dearness Allowance (DA) crosses 25 per cent and further to 30 per cent, 20 per cent and 10 per cent of Basic Pay in X, Y & Z cities when DA crosses 50 per cent.
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