The government may finalise 7th pay commission allowances, including HRA (House Rent Allowance), later this month, National Joint Council of Action (NJCA) convenor Shiv Gopal Mishra told NDTV. The employee union leader, who had discussions with top government officials recently, also said that there is a possibility of central government officials getting higher HRA than that recommended by the 7th pay commission. HRA accounts for the bulk of total allowances. National Joint Council of Action (NJCA) is a joint body of unions representing central government employees.
The Lavasa committee suggested some modifications in some allowances that are applicable universally to all employees as well as certain other allowances which apply to specific employee categories, the finance ministry had said in a statement. Economists say that disbursement of 7th pay commission allowances is expected to give a further boost to consumer spending and thus the broader economy.
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The 7th pay commission had recommended that house rent allowance 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 city. The 7th pay commission had also recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent when DA or dearness allowance crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when it crosses 100 per cent. With regard to allowances, employee unions have demanded HRA at the rate of 30 per cent, 20 per cent and 10 per cent.
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