Higher allowances, HRA in store for govt employees: 7th Pay Commission


With a decision that is likely this week itself, employee union leaders are hopeful that there is some good news in store for central government employees

A Union Cabinet meeting is scheduled for June 7, to be chaired by Prime Minister Narendra Modi, for which The Empowered Committee of Secretaries (E-CoS) has submitted a report on higher allowances and HRA. With a decision on the two crucial aspects of higher allowances and HRA expected this week itself, the employee union leaders are hoping that there is some good news in store for central government employees.

E-CoS representatives had apparently met on June 1 to screen the report on 7th Pay Commission allowances, including HRA, to prepare proposals for consideration by the government.

The E-CoS report on HRA and higher allowances such as House Rent Allowance (HRA), Dearness Allowance (DA) and Transport Allowance (TA), recommends a slab ranging between 25-27 percent of the basic as against demands of 30 percent, 20 percent and 10 percent by employees.

In a positive outlook, there are chances that the Cabinet may give the nod for a salary hike. The announcement will be made after June 7, after the meeting. Now that Prime Minister Narendra Modi is back from his foreign tour, the Cabinet is likely to meet on June 7.

The Cabinet may even reverse the decision on HRA. It has the power to consider the HRA slab of 30, 20 and 10 percent as demanded by the employees. It can take a call on whether it should implement the E-CoS recommendation or the demands made by the employees. Cabinet Secretary P K Sinha said that all demands of employees would be considered and placed before the Cabinet, which is the final authority on this matter.

It has been recommended that the HRA slab be fixed between 25 to 27 per cent. However, government employees will demand a higher HRA and better pay hike. It was pointed out during the discussions that the HRA must be paid at a rate of 30 per cent, 20 per cent and 10 per cent of the basic pay. The Central Government Employee Unions had said that if the 6th Pay Commission had not increased the HRA rates it should have also not decreased the rates. This evidently was a key grievance and the Cabinet will deliberate on this.


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