Monday 17 April 2017

7th Pay Commission: How the report on allowances may affect salaries of central govt employees

Date : 17.4.2017

7th Pay Commission: How the report on allowances may affect salaries of central govt employees




Know how the report on HRA and other allowances may affect salaries of central government employees and pensioners.
New Delhi: A high-level committee, headed by finance secretary Ashok Lavasa, which was asked to examine the 7th Pay Commission recommendation on allowances, is likely to submit its final report to Finance Minister Arun Jaitley this week.

The final recommendations on allowances will benefit over 47 lakh central government employees and 53 lakh pensioners.

The Lavasa Committee was constituted in June last year after the government implemented the recommendation of the 7th Pay Commission.

The 7th Pay Commission had earlier proposed the rate of House Rent Allowance (HRA) at 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.

The Commission had also recommended that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.

The existing rates of HRA for Class X, Y and Z cities and towns are 30 percent, 20 percent and 10 percent of Basic pay (pay in the pay band plus grade pay).



Population of City            DA above
PresentProposed50%100%
Above 50 lakh (Class X)30%24%27%30%
5 lakh to 50 lakh (Class Y)20%16%18%20%
Below 5 lakh (Class Z)10%8%9%10%



Assumingly, if the Committee accepts the bare recommendations of A K Mathur-led 7th Pay Commission then the HRA component of central government employees will increase ranging between 106 percent and 122 percent.

Take, for instance, a central government employee at the very bottom of the pay scale, where the basic pay (pay of pay band + grade pay) is now Rs 7,000, would currently be entitled to an HRA of Rs 2,100 in a Class X city. As per 7th Pay Commission, the new entry level pay at this level is Rs 18,000 per month against which the new HRA for a Class X city would be Rs 4,320 per month, that is 106 percent more than the existing level.

Similarly, at the highest level of the pay scale, the Cabinet Secretary and officers of the same rank have a basic pay of Rs 90,000, which means they are entitled to current HRA of Rs 27,000 in Class X towns. After the revised pay scale, the new basic pay is Rs 2.5 lakh, for which the HRA would be Rs 60,000, meaning a hike of 122 percent.



Existing Basic Pay (6th CPC)
 HRA (6th CPC)Proposed Entry Pay as per 7th CPCProposed HRA as per 7th CPC
Class XClass  Y
Class Z
 Class X
Class Y
Class Z
70002100140070018000432028801440
1350040502700135035400849656642832
21000630042002100561001346489764488
46100138309220461011850028440189609480
9000027000180009000250000600004000020000



As far as Transport Allowance (TA) is concerned, Pay Commission had proposed no increase.

1 comment:

Unknown said...

Please say any new things these all old from last year