7th Pay Commission: House Rent Allowance may be hiked, news likely soon

Key highlights

• Government is likely to hike HRA for central government employees under the revised 7th Pay Commission allowances.
• Union Cabinet on Wednesday did not take up proposals related to 7th pay commission allowances due to the absence of FM Arun Jaitley.
• At the next Cabinet meeting, speculated to be held on Monday, the government is likely to take up discussions on revised HRA. 

Union Cabinet may take up the recommendations on 7th Pay Commission soon which could include higher house rent allowance (HRA) for government employees.

The Committee on Allowances has recommended HRA to be fixed between 25-27% as against demands of 30%. The 7th Pay Commission, however, had recommended that HRA be paid at 24%, 16% and 8%.

Also Read: Cabinet to take up HRA allowance once Jaitley returns from South Korea

An earlier report said that Central government employees may get revised allowances from July 18 onward.

Recommendations by the Ashok Lavasa Committee was submitted on April 27. The committee had suggested modifications in some allowances that are applicable universally to all employees.

It also proposed subsuming nearly 200 allowances into one except a few.