Oct 1, 2016

7th Pay Commission: Committee on Allowances to Increase HRA by 120%; Hike likely in Oct Salary

New Delhi: This festive season is likely to bring double happiness for the Central Government employees.

As per media reports, the Committee on allowances set up by 7th Pay Commission will propose hike in House Rent Allowance (HRA) by 120 percent, which is more than double of what has been recommended earlier.

The proposed HRA hike will likely be implemented in October month's salary including all allowances, media reports further said.

The matters relating to pay and pension as decided by the government have been implemented with effect from January one this year.

In view of the strong protest staged by the representatives of Employee Associations and other stakeholders, government decided that recommendations on allowances, other than Dearness Allowance, will be examined by a Committee comprising Finance Secretary as Chairman and Secretaries of Home Affairs, Defence, Health and Family Welfare, Personnel & Training, Posts and Chairman, Railway Board as Members before taking a final decision.

On July 22, the Committee on Allowances was set up to decide on revision of allowance as Justice A K Mathur panel had earlier recommended abolition of 51 allowances and subsuming 37 others.

This Committee was constituted on July 22, and was to submit its report within four months. The first meeting of the Committee was held on August 4.

The recommendations of the 7th Pay Commission cover 48 lakh Central government employees and 52 lakh pensioners. 

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