Enter Keyword and Search



Cabinet Decision on HRA – Shocking News for Central government Employees

Cabinet Decision on HRA – Shocking News for Central government Employees

7th CPC HRA is a big upset for Central Government Employees

It is really a Shocking News for Central government Employees that 7th CPC HRA is not increased and retained the recommendation of 7th CPC on House rent Allowances with slight modifications. The date of effect of Allowances is another shock for CG Staffs.

The 7th CPC has recommended 24% , 16% and 8% for X, Y and Z cities. The Federations expressed their anguish over the Recommendation of HRA and other Allowances,Then Government Constituted a Committee to Examine the Allowances. After the Long wait, now the Government approved the same rates of House rent allowance which 7th CPC Recommended. It is really a big upset for Central government Employees. If the Government decided to approve the same rates , it should have been implemented with effect from 1st July 2016 instead of 1st July 2017. After 12 months wait the Government has decided to implement the Allowances without any Hike with effect from 1st July 2017 . It is tough decision to accept by Cg Staffs.

The Government Decision on HRA

House Rent Allowance

HRA is currently paid @ 30% for X (population of 50 lakh & above), 20% for Y (5 to 50 lakh) and 10% for Z (below 5 lakh) category of cities. 7th CPC has recommended reduction in the existing rates to 24% for X, 16% for Y and 8% for Z category of cities. 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 ₹5400, ₹3600 and ₹1800 for X, Y and Z category of cities respectively. This floor rate has been calculated @ 30%, 20% and 10% of the minimum pay of ₹18000. This will benefit more than 7.5 lakh employees belonging to Levels 1 to 3.

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.

Related Posts...


Recent Stories...


Disclaimer

90Paisa - Dedicated to Central Government Employees and Pensioners. As and when orders amending the rules are published by the Government, the amendment orders will be published in our blog immediately. Readers are requested to refer to the source link is given at the end of the post. All efforts have been made to ensure accuracy of the content on this blog, the same should not be construed as a statement of law or used for any legal purposes. 90paisa accepts no responsibility in relation to the accuracy, completeness, usefulness or otherwise, of the contents. Users are advised to verify/check any information with the relevant department(s) and/or other source(s), and to obtain any appropriate professional advice before acting on the information provided in the blog. Links to other websites that have been included on this blog are provided for public convenience only. 90paisa is not responsible for the contents or reliability of linked websites and does not necessarily endorse the view expressed within them. We cannot guarantee the availability of such linked pages at all times.

Recent Posts