Here is an expansive view on the HRA recommended for employees in Levels 1 to 3 in the pay matrix under 7th Pay Commission that might give a hint on the expected HRA hike under 8th Pay Commission.
New Delhi: While the setting up of the 8th Pay Commission has been given a go-ahead by the Cabinet, there is no word yet on the formation of the panel . Ever since the announcement on the formation of 8th CPC was made, a lot of speculations have started doing the rounds on expected salary revision, HRA, allowance and other perks that will be recommended by the 8th Pay Commission.
Here is an expansive view on the HRA recommended for employees in Levels 1 to 3 in the pay matrix under 7th Pay CommissionUnder the 7th Pay Commission, more than 7.5 lakh central government employees belonging to Levels 1 to 3 in the pay matrix had been recommended to get minimum HRA of Rs 5,400, Rs 3,600 and Rs 1,800 for X, Y and Z category of cities respectively.However, over the short term, lower level employees seemed to have benefitted but in the long run the situation was reverse. For instance, lower level employees were given HRA hike of up to 157 percent from July 2017 salaries as against 122 percent for higher level employees. But when DA would cross 50%, the higher level employees were to receive 176 percent hike as against 157 percent increase for lower level employees.As the HRA at the reduced rates may not be sufficient for employees falling in lower pay bracket, it has been decided that HRA shall not be less than Rs 5,400, Rs 3,600 and Rs 1,800 for X, Y and Z category of cities respectively. This floor rate has been calculated @ 30%, 20% and 10% of the minimum pay of Rs 18,000. This will benefit more than 7.5 lakh employees belonging to Levels 1 to 3, the government had said in a statement.The table below elaborates how more than 7.5 lakh employees belonging to Levels 1 to 3 in the pay matrix benefitted owing to fixation of minimum HRA.Pay MatrixX Y Z Level 1- 18,000Rs 4320 Rs 2880 Rs 1440 Level 2- 19,900Rs 4776 Rs 3184 Rs 1592 Level 3- 21,700Rs 5208 Rs 3472 Rs 1736 More than 48 lakh central government employees got HRA hike in range of 106 percent to 157 percent from July, 2017 salaries after the Modi cabinet in June 2017 approved the recommendations of the 7th CPC on allowances with some modifications.While approving the recommendations of the 7th CPC on 29th June, 2016, the Cabinet had decided to set up the Committee on Allowances in view of substantial changes in the existing provisions and a number of representations received.The modifications are based on suggestions made by the CoA in its Report submitted to Finance Minister on 27th April, 2017 and the Empowered Committee of Secretaries set up to screen the recommendations of 7th CPC.7th CPC had also recommended that HRA rates will be revised upwards in two phases to 27%, 18% and 9% when DA crosses 50% and to 30%, 20% and 10% when DA crosses 100%. Keeping in view the current inflation trends, the Government has decided that these rates will be revised upwards when DA crosses 25% and 50% respectively. This will benefit all employees who do not reside in government accommodation and get HRA, as per govt statement.Population of City DA abovePresentProposed50%100%Above 50 lakh 30%24%27%30%5 lakh to 50 lakh 20%16%18%20%Below 5 lakh 10%8%9%10%HRA was hithertho paid @ 30% for X , 20% for Y and 10% for Z category of cities. 7th CPC had recommended reduction in the existing rates to 24 percent for X, 16 percent for Y and 8 percent for Z category of cities.Population of City DA abovePresentProposed25%50%Above 50 lakh 30%24%27%30%5 lakh to 50 lakh 20%16%18%20%Below 5 lakh 10%8%9%10%As far as other allowances are concerned, the Union Cabinet decided not to abolish 12 of the 53 allowances which were recommended to be abolished by the 7th CPC.
8Th Pay Commission 7Th Pay Commission Central Government Employees Modi Government Basic Salary 7Th CPC 8Th CPC Budget 2025 8Th Pay Commission 7Th Pay Commission Central Government Employees Modi Government Basic Salary 7Th CPC 8Th CPC
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