7th Pay Commission: Cabinet likely to take up E-CoS proposal on allowances today

New Delhi: The long wait of central government employees and pensioners for allowances is about to end as the Narendra Modi government is expected to announce a maximum HRA hike of up to 122 percent for them soon.

As per media reports, the Empowered Committee of Secretaries (E-CoS) set up to screen the 7th Central Pay Commission (CPC) recommendations on allowances will place the proposal before the Cabinet Wednesday.

A high-level committee headed by the Finance Secretary, Ashok Lavasa had on April 27 submitted its report to Finance Minister Arun Jaitley.

The committee on allowances has reportedly given its view in favour of AK Mathur-led 7th Pay Commission recommendation, regarding decrease in house rent allowance (HRA) by 2-6 percent depending on type of cities.

The 7th Pay Commission headed by AK Mathur 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).