7th Pay Commission: Good news; government employees to get HRA hike of up to 157 pct in July salary

By: |
Published: July 3, 2017 5:46:40 PM

7th pay commission HRA: Over 48 lakh government employees will get increased salary with hiked HRA from 1st July.

7th pay commission latest news, 7th pay commission, 7th cpc, 7th Pay Commission, 7th Pay Commission allowance, 7th pay commission allowance news, 7th pay commission allowance news 2017, 7th Pay Commission report, 7th pay commission report latest news, 7th pay commission report news, 7th pay commission allowance news today, 7th pay commission allowance news 2017, 7th pay commission allowance news latest, seventh pay commission report, 7th pay commission pay scales, 7th pay commission allowance, 7th cpc news, 7th pay commission report pay and pension, seventh pay commission latest news, seventh pay commission, seventh pay commission news, seventh pay commission report, seventh pay commission report news, 7th CPC pay and pension, when will 7th pay commission come, CPC recommendations, 7th cpc hra latest news, 7th cpc latest news, 7th cpc news, 7th cpc allowances, 7th cpc calculator, Pay Commission, pay commission updateIn a bonanza to 48 lakh central government employees, the Union Cabinet on June 28 approved recommendations of 7th Central Pay Commission with 34 modifications.

7th pay commission HRA: With Union Cabinet chaired by the Prime Minister Narendra Modi clearing the recommendations of 7th Pay Commission on allowances with some modifications, more than 48 lakh Central government employees are expecting HRA hike from 1st July. The employees will start getting HRA hike in the range of 106 per cent to 157 per cent effective from this month, according to a report in Zee News. In a bonanza to 48 lakh central government employees, the Union Cabinet on June 28 approved recommendations of 7th Central Pay Commission with 34 modifications which will impose an additional annual burden of Rs 30,748 crore on the national exchequer. The increased allowances, which came into effect from July 1, 2017, is based on the recommendations of the Committee on Allowances (CoA). The allowances as recommended by the 7th CPC would have cost the exchequer Rs 29,300 crore. The modified allowances approved by the Union Cabinet headed by Prime Minister Narendra Modi will increase the burden by Rs 1,448 crore to Rs 30,748 crore per annum.

Sharing details, Jaitley said the Pay Commission had recommended reduction in the HRA rates to 24 per cent for X, 16 per cent for Y and 8 per cent for Z category of cities. “As the HRA at the reduced rates may not be sufficient for employees falling in lower pay bracket, it has been decided that HRA will not be less than Rs 5400, Rs 3600 and Rs 1800 for X, Y and Z category of cities respectively. “This floor rate has been calculated at 30 per cent, 20 per cent and 10 per cent of the minimum pay of Rs 18,000. This will benefit more than 7.5 lakh 1 to 3 levels of employees,” he said.

HRA under current structure

House Rent Allowance (HRA) is currently paid at 30 per cent for X (population of 50 lakh and above), 20 per cent for Y (5-50 lakh) and 10 per cent for Z (below 5 lakh) category of cities.

Briefing the media after the Cabinet meeting, Finance Minister Arun Jaitley had said that the modifications are based on suggestions made by the CoA in its report submitted to the Finance Minister on April 27, and the Empowered Committee of Secretaries set up to screen the recommendations of the 7th Pay Commission.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Income Tax Return Filing: 10 common mistakes people make while filing return of income
2How to track bond funds: G-Sec yield is the correct benchmark, for long term ones, for money market, track yields of treasury bills
3Move from ELSS to equity fund within same mutual fund house via STP? Here is what you should know