The Allowances Committee was set up in July 2016 on the direction of the Cabinet to look into the provision of allowances other than dearness allowance under the 7th Pay Commission recommendations. After protests and much debate, the commission which was adjudged to give a report on the 7th Pay Commission is expected today.
It has been almost eight months since the Narendra Modi government cleared the recommendations of the Seventh Pay Commission. The existing rates of HRA for these cities and towns were 30 per cent, 20 per cent and 10 per cent of Basic pay (pay in the pay band plus grade pay) respectively.
The house rent allowance (HRA), which forms a crucial part of government employees' salary, is expected to be fixed at 30 per cent of the basic pay for employees in metros which have a population of 50 lakh and above. The Seventh Pay Commission had examined a total of 196 existing allowances and, by way of rationalisation, recommended abolition of 51 allowances and subsuming of 37 allowances. Initially the committee was given a four-month time frame to come out with recommendations, which was later extended till February 22, 2017. The committee on allowances recommended by the 7th Pay Commission is likely to propose a increases ranging between 106 per cent and 122 per cent in HRA for all categories of employees.
Typically, in case of housing allowance, arrears are not paid.
"At worst, if the government is under pressure, this allowance can be pushed to the next year, as was done in the previous pay commissions".
The 7th Pay Commission notification confirmed that central government employees will get 14.27 per cent hike in basic pay at junior levels, which is the lowest in 70 years.