Cabinet Decision on HRA - Shocking News for Central government Employees
7th CPC HRA is a big upset for Central Government Employees
It is really a Shocking News for Central government Employees that 7th
CPC HRA is not increased and retained the recommendation of 7th CPC on
House rent Allowances with slight modifications. The date of effect of
Allowances is another shock for CG Staffs.
The 7th CPC has recommended 24% , 16% and 8% for X, Y and Z cities. The
Federations expressed their anguish over the Recommendation of HRA and
other Allowances,Then Government Constituted a Committee to Examine the
Allowances. After the Long wait, now the Government approved the same
rates of House rent allowance which 7th CPC Recommended. It is really a
big upset for Central government Employees. If the Government decided to
approve the same rates , it should have been implemented with effect
from 1st July 2016 instead of 1st July 2017. After 12 months wait the
Government has decided to implement the Allowances without any Hike with
effect from 1st July 2017 . It is tough decision to accept by Cg
Staffs.
The Government Decision on HRA
House Rent Allowance
HRA is currently paid @ 30% for X (population of 50 lakh & above),
20% for Y (5 to 50 lakh) and 10% for Z (below 5 lakh) category of
cities. 7th CPC has recommended reduction in the existing rates to 24%
for X, 16% for Y and 8% for Z category of cities. As the HRA at the
reduced rates may not be sufficient for employees falling in lower pay
bracket, it has been decided that HRA shall not be less than ₹5400,
₹3600 and ₹1800 for X, Y and Z category of cities respectively. This
floor rate has been calculated @ 30%, 20% and 10% of the minimum pay of
₹18000. This will benefit more than 7.5 lakh employees belonging to
Levels 1 to 3.
7th CPC had also recommended that HRA rates will be revised upwards in
two phases to 27%, 18% and 9% when DA crosses 50% and to 30%, 20% and
10% when DA crosses 100%. Keeping in view the current inflation trends,
the Government has decided that these rates will be revised upwards when
DA crosses 25% and 50% respectively. This will benefit all employees
who do not reside in government accommodation and get HRA.
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