Published On: Fri, Jul 7th, 2017

Govt notifies higher allowances, HRA; effective from July 1

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New Delhi: The government has issued notification on higher allowances, including house rent allowance or HRA as per the recommendation made by 7th Pay Commission.
“Resolution conveying Government decision on recommendation of 7th CPC on allowances published in Gazette of India,” an ANI report said.
7th Pay Commission: Maximum HRA hiked from Rs 27,000 to Rs 60,000 for now, to be raised to Rs 75,000 when DA crosses 50%’
7th Pay Commission: Maximum HRA hiked from Rs 27,000 to Rs 60,000 for now, to be raised to Rs 75,000 when DA crosses 50%
All allowances given will be effective from 1st July 2017. Concerned ministries advised to issue their orders on allowances governed by them immediately.
In a bonanza to 48 lakh central government employees, the Union Cabinet on June 28 approved recommendations of 7th Central Pay Commission with 34 modifications which will impose an additional annual burden of Rs 30,748 crore on the exchequer.
The increased allowances, which comes into effect from July 1, 2017, is based on the recommendations of the Committee on Allowances (CoA).
The allowances as recommended by the 7th Central Pay Commission would have cost the exchequer Rs 29,300 crore. The modified allowances approved by the Union Cabinet headed by Prime Minister Narendra Modi will increase the burden by Rs 1,448 crore to Rs 30,748 crore per annum.
The 7th Pay Commission suggested abolition of 53 allowances. Of these, the government decided not to do away with 12 allowance.
This will benefit over one lakh employees belonging to specific categories in railways, posts, defence and scientific departments.
The modifications approved by the government were finalised by the Empowered Committee of Secretaries based on the recommendations of the CoA.
The Pay Commission had recommended reduction in the HRA rates to 24 per cent for X, 16 per cent for Y and 8 per cent for Z category of cities.
House Rent Allowance (HRA) is currently paid at 30 per cent for X (population of 50 lakh and above), 20 per cent for Y (5-50 lakh) and 10 per cent for Z (below 5 lakh) category of cities.
For Siachen allowance, level 9 and above will get Rs 42,500 as compared to Rs 31,500 recommended by Pay Commission.

For level 8 and below it would be Rs 30,000 against Rs 21,000 recommended by the Pay Commission.
Allowance granted to CRPF personnel deployed in Naxal-hit areas will be governed by the Risk and Hardship Matrix, he said, adding the rates will go up from Rs 8,400-16,800 per month to Rs 17,300-25,000 per month.

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