7th Pay Commission: Cabinet may make HRA and other allowances announcement soon

Key Highlights

• Union Cabinet is expected to hold meeting today to discuss allowance and HRA
• Last week E-CoS read higher allowance report under 7th Pay Commission
• Committee on Allowances has recommended HRA between 25%-27% as against 30%, which was demanded by central government employees

7th Pay Commission's view on allowances may be resolved today as the Cabinet is likely announce its decision on issues related to salary hike, house rent allowance (HRA), Dearness Allowance (DA) and Transport Allowance (TA).

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The Committee on Allowances headed by Finance Secretary Ashok Lavasa has suggested capping HRA at 25%-27% as against demands of 30%. 

7th CPC had recommended house rent allowance (HRA) to be paid at the rate of 24%, 16% and 8% of the new Basic Pay, depending on the type of cities.

However, Zee Business sources told Alok Priyadarshi that the Committee on Allowances has recommended HRA between 25%-27% as against the demand of 30%. 

ALSO READ: 7th Pay Commission: Allowance report to be placed before Cabinet

Another recommendation which is likely to be discussed is related to the change in accounting period. Out of 196 allowances, the 7th Pay Commission report had recommended abolition of 52 and subsuming of another 36 into larger existing ones.