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House Rent Allowance (HRA) Calculations after implementation of 7th CPC…

July 2, 2016 By admin

House Rent Allowance (HRA) Calculations after implementation of 7th CPC…

The Union Cabinet finally cleared the 7th Central Pay Commission for implementation on the 29th of July 2016. The Report which recommended a hike in salaries and pension for employees and pensioners, will be implemented from 1st January 2016. After taking into account dearness allowance at the prevailing rate, the salary, pension to all central government employees and pensioners will increase by at least 14.29 % as on January 2016, and could go up to 23 % in upper categories.

 The union cabinet approved the recommendations of the 7th CPC on pay and pension but proposals for allowances was deferred and announced a committee under the finance secretary. The committee will analyse the allowances to be implemented or scraped. So the allowances like HRA, TA etc. will continue at existing rates for now.

 Regarding the HRA at present, it is 30 % for class X cities, 20% for Y cities, and 10% for Z class cities. However, in the 7th CPC report it was recommended that the HRA should paid at the rate of 24%, 16% and 8% of the new basic pay for X, Y and Z category of cities respectively. The commission had recommended a rise in HRA when the DA crosses 50% to 27%, 18% and 9% and further increase to 30%, 20% and 10% when the DA crosses 100%.

 Now the allowances including HRA will be kept under the newly formed committee, there will be a huge confusion when calculating allowances including the HRA. On what basis will the HRA be calculated if the new recommendations are implemented?

 For example,

6th CPC

Pay in the pay band

Grade Pay Basic Pay HRA @30% 7th CPC

Basic pay

HRA @ 24%
Rs.13690 Rs.4200 Rs.17890 Rs.5367 Rs.46200 Rs.11088
Rs.10000 Rs.2000 Rs.12000 Rs.3600 Rs.30840 Rs.7464

 Let us wait and see for the government orders regarding the calculations!!!!

 

Related Posts:

  • 7th CPC – Classification of Cities as per the Orders of the Finance Ministry for the grant of HRA from July 2017…
  • 7th CPC – Analysis and Recommendations on House Rent Allowance (HRA)…
  • 7th CPC – House Rent Allowance (HRA)  to be Increased…
  • 7th CPC – Additional HRA for Civilian Employees of the Central Government serving in the states of North Eastern Region, Andaman & Nicobar Islands, Lakshadweep Islands and Ladakh…
  • 7th CPC Allowances: Where Central Government Employees will get maximum HRA – Know City-wise…




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  1. House Rent Allowance (HRA) Calculations after implementation of 7th CPC - Govt Staff News Portal — CENTRAL GOVERNMENT EMPLOYEES NEWS says:
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