New Delhi, April 19: Finance secretary Ashok Lavasa led high-level committee which was to examine the allowance recommendations of the 7th Central Pay Commission will probably submit the final report to Union Finance Minister Arun Jaitley this week, and this is expected to affect the salaries of the Central government employees. The final allowances recommendations is expected to benefit more than 47 lakh central government employees and 53 lakh pensioners.
As per the earlier proposal of the 7th Pay Commission, the rate of House Rent Allowance was supposed to be at 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively. However, the Commission stated that the rate of HRA will be revised 27 percent, 18 percent and 9 percent when the Dearness Allowance (DA) crosses 50 percent. It also suggested that it will be revised further to 30 percent, 20 percent and 10 percent when the DA crosses 100 percent.
All cities which has more than 50 lakh population is categorised as Class X cities. Class Y cities are those with population of 5 lakh to 50 lakh while any city with population lesser than 5 lakh is categorised as Class Z city.
It is assumed that if the Committee accepts the recommendations of the 7th Pay Commission led by AK Mathur, then the HRA component of central government employees will be hiked at a range between 106 percent and 122 percent.
No hike in Transport Allowance (TA) has been yet proposed by the Pay Commission. After the government implemented the recommendation of the 7th Pay Commission, the Lavasa Committee was constituted in June 2016.