7th Pay Commission: Cabinet may announce decision this week; HRA capped at 27%

Key Highlights

• E-CoS submitted its report on higher allowance under 7th Pay Commission to Union Cabinet
• E-CoS recommended HRA slab ranging between 25-27% of the basic pay
• Proposal to hike salary likely to be placed in Cabinet by next week

7th Pay Commission woes for central government employees may finally coming to an end this week as the Empowered Committee of Secretaries (E-CoS) has submitted its report on higher allowances like House Rent Allowance (HRA), Dearness Allowance (DA) and Transport Allowance (TA) to Union Cabinet, sources told Alok Priyadarshi.

Sources said that the Committee on Allowances has receommended HRA between 25%-27% as against the demand of 30%. 

Finance Ministry had formed the Committee on Allowances headed by Finance Secretary Ashok Lavasa to look at demands for these allowances. 

Out of 196 allowances, the 7th Pay Commission report had recommended abolition of 52 and subsuming of another 36 into larger existing ones.

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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.  

The proposal may be accepted and announced by Prime Minister Narendra Modi-led Cabinet as early as next week. 

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