Thursday, June 30, 2016

Confusion over HRA after cabinet approval

Central employees are confused about allowances after the official press release. As per the official statement,
” The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.”
The above press release  concluded with a statement of ” Till a final decision, all existing Allowances will continue to be paid at the existing rates”
Since the House Rent Allowance also listed among one of these 196 Allowances, the status HRA is not clear now. The existing rates of HRA is 30%, 20% and 10% for class X, Y and Z respectively. Whether these existing rates of HRA will be paid based on revised pay or pre revised pay ?

Also Read : Central employees on indefinite strike from 11th July
There are difference of opinions among the employees and Govt. should clear the air with suitable clarification or employees will have to wait for the notification.

1 comment :

S.Lakshman Rao said...

Allowances Part has been referred to separate agency for detailed examination.Deferred Report when submitted will get appropriate answer...A message from a team which has seen all the pay commissions implemented so far...

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