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Tuesday, 2 May 2017

7th Pay Commission Allowances Committee submitted report – Finance Ministry official press release

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The Committee on Allowances headed by Shri Ashok Lavasa, Finance Secretary and Secretary (Expenditure) submitted its Report to the Union Finance Minister Shri Arun Jaitley yesterday; The Report will be now placed before the Empowered Committee of Secretaries (E-CoS) to firm-up the proposal for approval of the Cabinet.

The Committee on Allowances, constituted by the Ministry of Finance, Government of India to examine the 7th CPC recommendations on Allowances, submitted its Report to the Union Finance Minister Shri Arun Jaitley yesterday. The Committee was headed by Shri Ashok Lavasa, Finance Secretary and Secretary (Expenditure),M/o Finance, Government of India and had Secretaries of Home Affairs, Defence, Health & Family Welfare, Personnel & Training, Post and Chairman, Railway Board as its Members and Joint Secretary (Implementation Cell) as its Member Secretary.
The Committee was set-up in pursuance of the Union Cabinet decision on 29.06.2016 when approving the 7th CPC recommendations on pay, pensions and related issues were approved. The decision to set-up the Committee was taken in view of significant changes recommended by the 7th CPC in the allowances structure and a large number of representations received in this regard from various Staff Associations as well as the apprehensions conveyed by various Ministries / Departments. The 7th CPC had recommended that of a total of 196 Allowances, 52 be abolished altogether and 36 be abolished as separate identities by subsuming them in another allowance.
The Committee took note of all the representations received from various stakeholders on the 7th CPC recommendations on Allowances. Representations and demands for modifications were received in respect of 79 allowances which have been examined in detail by the Committee. In doing so, the Committee interacted with all the members of the Standing Committee of National Council (Staff Side), Joint Consultative Machinery (JCM) as well the representatives of various Staff Associations of Railways, Postal employees, Doctors, Nurses, and Department of Atomic Energy. It also interacted with the representatives of the Defence Forces, DGs of Central Armed Police Forces (CAPFs) namely CRPF, CISF, BSF, ITBP, SSB, and Assam Rifles as also senior officers from IB and SPG to understand the viewpoint of their personnel. As mentioned in the Report, the Committee held a total of 15 meetings and was assisted by a Group of Officers headed by Additional Secretary (D/o Expenditure) in examining the representations.
Based on such extensive stakeholder consultations and detailed examination, the Committee has suggested certain modifications in the 7th CPC recommendations so as to address the concerns of the stakeholders in the context of the rationale behind the recommendations of the 7th CPC as well as other administrative exigencies. Modifications have been suggested in some allowances which are applicable universally to all employees as well as certain other allowances which apply to specific employee categories such as Railway men, Postal employees, Scientists, Defence Forces personnel, Doctors and Nurses etc.
The Report, now being examined in the Department of Expenditure, Ministry of Finance, will be placed before the Empowered Committee of Secretaries (E-CoS) set-up to screen the 7th CPC recommendations and to firm-up the proposal for approval of the Cabinet. It may be recalled that while recommendations of the 7th CPC on pay and pension were implemented with the approval of Cabinet, allowances continue to be paid at old rates. After consideration by the E-CoS, the proposal for implementation of 7th CPC recommendations on Allowances after incorporating the modifications suggested by the Committee on Allowances in its Report shall be placed before the Cabinet for approval.

7th Pay Commission allowances: Where government employees will get maximum HRA- know city-wise

Indian Military Veterans


The committee on allowances has reportedly given its view in favour of AK Mathur-led 7th Pay Commission recommendation, regarding decrease in house rent allowance (HRA) by 2-6 percent depending on type of cities.
7th Pay Commission allowances: Where government employees will get maximum HRA- know city-wise
New Delhi: The 10-month long wait of central government employees and pensioners for allowances is about to end as the Narendra Modi government is expected to  announce a maximum HRA hike of up to 122 percent for them soon.
A high-level committee headed by the Finance Secretary, Ashok Lavasa had on last Thursday submitted its report to Finance Minister Arun Jaitley. The report will now be examined by the empowered committee of secretaries and following that it will be placed before the Cabinet.
The committee on allowances has reportedly given its view in favour of AK Mathur-led 7th Pay Commission recommendation, regarding decrease in house rent allowance (HRA) by 2-6 percent depending on type of cities.
Population of City            DA above
PresentProposed50%100%
Above 50 lakh (Class X)30%24%27%30%
5 lakh to 50 lakh (Class Y)20%16%18%20%
Below 5 lakh (Class Z)10%8%9%10%
The 7th Pay Commission headed by AK Mathur had earlier proposed the rate of House Rent Allowance (HRA) at 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.
The Commission had also recommended that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.
The existing rates of HRA for Class X, Y and Z cities and towns are 30 percent, 20 percent and 10 percent of Basic pay (pay in the pay band plus grade pay)

Below is the list of cities/towns classified for grant of House Rent Allowance (HRA) to central government employees

 States/Union TerritoriesCities classified as XCities classified as Y
1Andaman & Nicobar Islands  
2Andhra PradeshHyderabad
Vijawada, Warangal, Visakhapatnam, Guntur, Nellore
3Arunachal  Pradesh  
4Assam Guwahati
5Bihar 
Patna



6Chandigarh Chandigarh
7Chhattisgarh Durg-Bhilai Nagar, Raipur
8Dadra & Nagar Haveli  
9Daman & Diu  
10DelhiDelhi 
11Goa  
12GujaratAhmedabad
Rajkot, Jamnagar, Bhavnagar, Vadodara, Sutat
13Haryana Faridabad, Gurgaon
14Himachal Pradesh  
15
Jammu & Kashmir
 Srinagar, Jammu
16Jharkhand Jamshedpur,  Dhanbad,  Ranchi, Bokaro Steel City
17KarnatakaBengaluru
Belgaum, Hubli-Dharwad, Mangalore, Mysore, Gulbarga
18Kerala Khozhikode, Kochi, Thiruvanthapuram, Thrissur, Malappuram, Kannur, Kollam
19Lakshadweep  
20
Madhya Pradesh
 
Gwalior, Indore, Bhopal, Jabalpur, Ujjain
21Maharashtra
Greater Mumbai, Pune
Amravati, Nagpur, Aurangabad, Nashik, Bhiwandi, Solapur, Kolhapur, Vasai-Virar City, Malegaon, Nanded-Waghala, Sangli
22Manipur  
23Meghalaya  
24Mizoram  
25Nagaland  
26Odisha Cuttack, Bhubaneswar, Raurkela
27Pondicherry Pondicherry
28Punjab Amritsar, Jalandhar, Ludhiana
29Rajasthan Bikaner, Jaipur, Jodhpur, Kota, Ajmer
30Sikkim  
31Tamil NaduChennaiSalem, Tiruppur, Coimbatore, Tiruchirappalli, Madurai, Erode
32Tripura  
33Uttar Pradesh Moradabad, Meerut, Ghaziabad, Aligarh, Agra, Bareilly, Lucknow, Kanpur,
Allahabad, Gorakhpur, Varanasi, Saharanpur, Noida, Firozabad, Jhansi
34Uttarakhand Dehradun
35West BengalKolkataAsansol, Siliguri, Durgapur
The remaining cities / towns in various cities / UTs which are not covered by classification as ‘X’ or ‘Y’ classified as “Z” for the purpose of HRA.
-----------
If the government accepts the bare recommendations of A K Mathur-led 7th Pay Commission then the HRA component of central government employees will increase ranging between 106 percent and 122 percent.
Take, for instance, a central government employee at the very bottom of the pay scale, where the basic pay (pay of pay band + grade pay) is now Rs 7,000, would currently be entitled to an HRA of Rs 2,100 in a Class X city. As per 7th Pay Commission, the new entry level pay at this level is Rs 18,000 per month against which the new HRA for a Class X city would be Rs 4,320 per month, that is 106 percent more than the existing level.
Similarly, at the highest level of the pay scale, the Cabinet Secretary and officers of the same rank have a basic pay of Rs 90,000, which means they are entitled to current HRA of Rs 27,000 in Class X towns. After the revised pay scale, the new basic pay is Rs 2.5 lakh, for which the HRA would be Rs 60,000, meaning a hike of 122 percent

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