Seventh Pay Commission: Talks On HRA Held Today, Report Likely Soon - NDTV Profit
A union body of central government employees today met members of the
Ashok Lavasa committee over HRA or housing rent allowance related to
Seventh Pay Commission. Shiv Gopal Mishra, the convenor of National
Joint Council of Action (NJCA), a joint body of unions representing
central government employees, said the union body held final round of
talks with the panel members on HRA related to Seventh Pay Commission.
The panel on allowance related to HRA will soon finalise its
recommendations to the government, the union leader said.
The panel headed by Finance Secretary Ashok Lavasa is reviewing Seventh
Pay Commission allowances. The government had in June accepted the
recommendation of Justice AK Mathur-headed Seventh Pay Commission in
respect of the hike in basic pay and pension but its suggestions
relating to allowances were referred to the committee. The Seventh Pay
Commission had examined a total of 196 existing allowances and, by way
of rationalisation, recommended abolition of 51 allowances and subsuming
of 37 allowances.
The committee on allowances was initially given a time of four months to
submit its report to the finance minister. Till a final decision is
taken, all existing allowances are being paid at the Sixth Pay
Commission rates.
The Seventh Pay Commission had recommended that HRA be paid at the rate
of 24 per cent, 16 per cent and 8 per cent of the new Basic Pay,
depending on type of cities.
The Seventh Pay Commission had also recommended that the rate of HRA be
revised to 27 per cent, 18 per cent and 9 per cent respectively when DA
crosses 50 per cent, and further revised to 30 per cent, 20 per cent and
10 per cent when DA crosses 100 per cent.
Typically, in case of housing allowance, arrears are not paid.
Allowances form a significant chunk of government employees' salary.
Some analysts had earlier said that implementation of the housing
allowance portion of the Seventh Pay Commission as well as GST or Goods
and Services Tax could push up average inflation.
"At worst, if the government is under pressure, this allowance can be
pushed to the next year, as was done in the previous pay commissions.
The housing allowance does not attract arrears," HSBC Securities had
said in an earlier report.
The Cabinet had also decided to constitute two separate committees to
suggest measures for streamlining the implementation of National Pension
System (NPS) and to look into anomalies likely to arise out of
implementation of the Commission's Report.
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