7th Pay Commission: Minimum HRA hike of Rs 4,320 per month Central Employee May Get

One should know what exactly is the minimum increment in his Salary and revised allowances, if government approves the revised/enhanced. Although it may differ  due to effective date of revised allowance from 01.01.2016 or 01.08.2016 or the month after the approval of report of allowances committee.

Much awaited event for central government employees seems to furbish. It is assumed that the central government employees can't be left to feel disappointed with the final report of revised allowances recommended by the 7th Central Pay Commission that is going to be approved by the cabinet very soon. The Report, now being examined in the Department of Expenditure, will be placed before the Empowered Committee of Secretaries (E-CoS) set up to screen the 7th CPC recommendations and to firm up the proposal for approval of the Cabinet.

7th-cpc-latest-on-hra-allowances-minium-pay

Now moving to the most important point: One should know what exactly is the minimum increment in his Salary and revised allowances, if government approves the revised/enhanced. Although it may differ  due to effective date of revised allowance from 01.01.2016 or 01.08.2016 or the month after the approval of report of allowances committee, but at the same time the paramnews.com team has analyzed report of revised allowances recommended by the 7th Central Pay Commission.

The following bar graphs Table to show the allowances form a sizeable amount of the salary drawn by a government employee. The details of allowances recommended by 7th CPC.

The allowances form a sizeable amount of the salary drawn by a government employee as recommended by 7th CPC.
 
Pay
Band
Grade
Pay
7th
CPC
Pay
Matrix
Minimum
Pay 
Maximum
Pay
Recommended by 7th CPC
X Class City Y  Class City Z Class City
24% 24% 16% 16% 9% 9%
Minimum
HRA
Maximum
HRA
Minimum
HRA
Maximum
HRA
Minimum
HRA
Maximum
HRA
PB-1
5200-
20200
1800 1 18000 56900 4320 13656 2880 9104 1620 5121
1900 2 19900 63200 4776 15168 3184 10112 1791 5688
2000 3 21700 69100 5208 16584 3472 11056 1953 6219
2400 4 25500 81100 6120 19464 4080 12976 2295 7299
2800 5 29200 92300 7008 22152 4672 14768 2628 8307
PB-2
9300-
34800
4200 6 35400 112400 8496 26976 5664 17984 3186 10116
4600 7 44900 142400 10776 34176 7184 22784 4041 12816
4800 8 47600 151100 11424 36264 7616 24176 4284 13599
5400 9 53100 167800 12744 40272 8496 26848 4779 15102
PB-3
15600-
39100
5400 10 56100 177500 13464 42600 8976 28400 5049 15975
6600 11 67700 208700 16248 50088 10832 33392 6093 18783
7600 12 78800 209200 18912 50208 12608 33472 7092 18828
PB-4
37400-
66700
8700 13 118500 214100 28440 51384 18960 34256 10665 19269
8900 13A 131100 216600 31464 51984 20976 34656 11799 19494
10000 14 144200 218200 34608 52368 23072 34912 12978 19638
67000-79000 15 182200 224100 43728 53784 29152 35856 16398 20169
67000-79000 16 205400 224400 49296 53856 32864 35904 18486 20196
80000 17 225000 225000 54000 54000 36000 36000 20250 20250
90000 18 250000 250000 60000 60000 40000 40000 22500 22500


The committee on allowances headed by Finance Secretary Ashok Lavasa that was set up to review the recommendations of the Seventh Pay Commission is understood to have finalised its report. Now after review of empowered committee the report will be placed before the cabinet. 

The 7th Pay Commission had earlier proposed the rate of House Rent Allowance (HRA) at 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.

The Commission had also recommended that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.

The existing rates of HRA for Class X, Y and Z cities and towns are 30 percent, 20 percent and 10 percent of Basic pay (pay in the pay band plus grade pay).

Assumingly, if the Committee accepts the bare recommendations of A K Mathur-led 7th Pay Commission then the HRA component of central government employees will increase ranging between 106 percent and 122 percent.

Take, for instance, a central government employee at the very bottom of the pay scale, where the basic pay (pay of pay band + grade pay) is now Rs 7,000, would currently be entitled to an HRA of Rs 2,100 in a Class X city. As per 7th Pay Commission, the new entry level pay at this level is Rs 18,000 per month against which the new HRA for a Class X city would be Rs 4,320 per month, that is 106 percent more than the existing level.

Similarly, at the highest level of the pay scale, the Cabinet Secretary and officers of the same rank have a basic pay of Rs 90,000, which means they are entitled to current HRA of Rs 27,000 in Class X towns. After the revised pay scale, the new basic pay is Rs 2.5 lakh, for which the HRA would be Rs 60,000, meaning a hike of 122 percent.

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