7th Pay Allowances Declared for Central employers. download official pressnote
HRA 8%, 16% 24%
The Union Cabinet has approved the recommendations of the Seventh Pay Commission on House Rent Allowance (HRA) rates and other allowances for Central government employees.
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Finance Minister Arun Jaitley said that the Seventh Pay Commission’s recommendations have been cleared with 34 modifications.
With this, the Narendra Modi government is set to implement the revised allowance structure from July.
The Seventh Pay Commission projected additional financial implication of Rs 29,300 crore per annum; the modifications by the Cabinet will cost another Rs 1448.23 crore. When combined, the implementation of revised allowance structure will cost the state exchequer an estimated Rs 30,78.23 crore every year.
Prime Minister Modi, who returned from his three-nation tour today morning, was expected to chair the month’s last Cabinet meet and decide on allowances for nearly 50 lakh Central government employees.
The Seventh Pay Commission examined 197 allowances for Central government employees and recommended axing 53 of them and merging another 37 with bigger ones.
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