The Committee on Allowances, headed by Finance Secretary Ashok Lavasa has submitted its report on Housing Rent Allowance (HRA) to the government, reports NDTV. The submission of report further paves the way for government to implement the hike in allowances as per the revised recommendations of 7th Pay Commission. The date of allowance hike is expected to be April 1. Centre is expected to make the announcement after the five-state elections conclude on March 8.
The 7th Pay Commission had recommended that HRA should be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new Basic Pay, depending on the type of cities while unions demanded HRA at 30, 20 and 10 per cent. While employee union believes that if the government can’t raise the HRA then it can also not decrease it. The government is expected to announce its decision post-March 8, after elections of five states are over. With this the central government will not violate the model code of conduct.
The government has divided transport allowance into two parts, one being CCA and the other one is TA. It is believed that this might be separated from DA and might be set on a fix slab. It is being said that employee demand has been accepted and the committee has agreed to pay HRA according to the sixth pay commission.
Ashok Lava’s committee had in October last year stated that his team was ready with its report. As per now, the central government employees are paid allowances according to the 6th Pay Commission recommendations until issuing of higher allowances notification. In October 2016, Ashok Lavasa had said, “We are ready to submit our report, whenever Finance Minister Arun Jaitley calls up”.
HRA will benefit 48 lakh employees of central government, and will also be helpful for pensioners. If the suggestions of the pay commission are approved, then the basic pay will increase along with allowances. The 7th pay commission had suggested for stopping 51 allowances and merging 37 others out of 196 allowances.
