7th CPC recommendations to reduce House Rent Allowance
The 7th Central Pay Commission has been recommended to reduce the percentage of House Rent Allowance for all categories of Central Government employees rationalized to 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.
The Commission also recommends 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 present scheme of HRA is based on the recommendation of the 6th CPC, which is as follows:
The 7th Central Pay Commission has been recommended to reduce the percentage of House Rent Allowance for all categories of Central Government employees rationalized to 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.
The Commission also recommends 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.
7th CPC HRA: HRA is
the most important factor of allowance issuing to existing Central
Government employees, it is given for compensate to live in rented
house. The HRA rules are allowed for getting allowance even if he/she
living in own house.
A major changes had been made in 6th CPC
on HRA rules. The percentages were prescribed on basic pay according to
the cities in India. The cities are classified as X, Y and Z and the
rates of percentage respect of the cities are 30%, 20% and 10% on basic
pay (Grade pay including).
Central Government employees are expecting changes in the rate of percentage according to cities.
NC JCM STAFF SIDE SUGGESTION ON HOUSE RENT ALLOWANCE
National Council JCM Staff Side given suggestion on House Rent Allowance for Central Government employees as under…
House Rent allowance.
The present scheme of HRA is based on the recommendation of the 6th CPC, which is as follows:
We reproduce
hereunder the recommendation made by the third Central Pay Commission
in the matter of grant of house rent allowance. (Para 29 Part I. Vol.
IV.Chapter 56), which would be the best if implemented even today. While
we find it difficult to accept the kind of parity suggested above, we
are aware of the acute problem caused by the lack of adequate government
housing and by the inadequate government housing and by the inadequacy
of the existing rates of house rent allowance and recommend as follows:-
Government should take houses on long
lease and make residential accommodation available to its employees on
payment of 10% of their pay.
(ii) Government should lay down
appropriate house rent allowance rates in different cities and towns
based not on population criteria, but on an actual assessment of the prevailing levels of rent in different cities
and towns. Alternatively, certain notional rents for different types of accommodation meant for officers and personnel of specified pay groups
should be laid down for particular cities after studying the actual
conditions in that city. The difference between the actual rent paid and
10% of pay should be reimbursed subject to a maximum of the difference
between the notional rent and 10% of the pay. The existing norms in
regard to entitlement of accommodation, size of rooms etc. could, if
necessary, be reduced depending on the housing situation and the norms
usually adopted by different income groups in renting accommodation in
the various cities. Such notional rents should, to start with, be
applied to all stations falling under the description of classified
cities for purposes of House Rent Allowance, Additions could also be
made to the list later on by including other cities deserving similar
treatment.
(iii) Till the Government is able to
make arrangements recommended in the preceding sub-paragraphs, the rates
of HRA should be as follows:-
The
above said recommendations is still to be acted upon by the Government
and the transitory provisions suggested by them i.e. payment of
allowances at a pre-determined rate on the basis of classification made
of the cities depending upon the population continue to be employed. The
non-implementation of the above recommendation of the third CPC , has
without exception, gone to depress the wage of all sections of Central
Government employees as they are perforce to spend more than what they
receive as HRA for obtaining and retaining the accommodation.
The rates prescribed by the 6th CPC,
though an improvement over its predecessor Commission, it has not
improved the situation. The real estate value throughout the country has
skyrocketed and owning an accommodation within the city/Municipal limit
has become impossible for Government employees. There is not a single
town/village where the real estate boom has remained unaffected. The
phenomenal increase in the value of land has naturally impacted the
rent, one is to pay on leasing house/flat. The house rent allowance does
not bear even a small percentage of the rent. The 7th CPC may recommend
to the Government to act upon the suggestion made by the 3rd CPC
without any further delay. Pending action on the part of the Government,
the Commission may suggest the following rates of House Rent allowance;
Source: 7thpaycommissionnews.in
