Seventh Pay
Commission To Propose Higher HRA
New Delhi: The Seventh Pay
Commission is likely to propose to increase House Rent Allowance (HRA) of
central government employees, besides their basic salaries.
By giving House Rent Allowance
hikes, the Pay Commission is likely to
seek to encourage property owners to
rent out their properties, reduce the shortage of dwellings and to provide
‘housing for all central government employees’.
Besides the basic salary, a large
portion of central government employees’ salary is the House Rent Allowance;
some changes will be made in that category this time.
Instead of the existing three
areas for house rent, four are likely to be created. ‘X’ class cities
Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune,
where employees will get 40 percent of their basic salary as House Rent
Allowance (HRA), increasing from the existing 30 percent.
Employees posted at ‘Y’ class
cities covers near about 90 stations, will receive 30 percent of basic salary,
instead of the existing 20 percent.
A new area will be opened
for the district towns; the central government employees will get 20 percent of
their basic salary as House Rent Allowance (HRA) there.
In other areas, the house rent
allowance will be 10 percent of basic, which is the existing rate of House Rent
Allowance (HRA) of ‘Z’ class cities.
The existing qualifying threshold
of population for HRA classification is 50 lakh and above for X, 5-50 lakh for
Y and below 5 lakh for Z class cities.
However, the central government’s
salary bill will rise by 9.56% to Rs 1,00,619 crore with the implementation of
the recommendations of the Seventh Pay Commission, according to a statement
tabled in Parliament by Union Finance Minister Arun Jaitley on August 12.
Share with the world !!
0 Responses to Seventh pay commission to propose higher HRA