Latest News
-
Hindustan Zinc's Quarterly Profits Dive 21% Amid Global Metal Price Slump, Shares Plummet; Buy Or Not? -
IRFC, RVNL, IRCTC, Railtel: Railway Stocks In Focus As Election Polls Begin; Mega Rs 10-12 Lakh Crore Plan -
Rs 14/Share Dividend: Stockbroking Co To Consider Bonus Share, Shares Up 126% In 180-Days -
Varyaa Creations IPO Set To Shine: Boasts Robust GMP Of Rs 100 -
BEL, HAL, Cochin, Mazagon Dock: Why Defence Stocks Are Flying High When Middle East Is In Kaboom? -
FII-Backed Penny Stock Issues New Update On Warrants, Shares Gain 111% In 3-Yrs -
Top 5 Bank Savings Accounts With No Hidden Charges; Check Details? -
150% Gains In 12 Months: This Multibagger Telecom Stock Hits 52-Week High; IIFL Finance Recommends BUY! -
Singapore Orders Recall Of Everest Fish Curry Masala Over Pesticide -
China's Sinking Cities: Researchers Warn Of A Looming Threat, Say Half Of Major Cities Are Drowning
7th Pay Commission: Minimum HRA fixed for different city categories
The 7th CPC resolution passed by the government now is published in the gazette of India and the revised allowances shall be effected from July 1, 2017.
The 7th CPC or Central Pay Commission government resolution now finds its place in the Gazette of India. The revised allowances are said to affect over 48 lakh central government employees and are said to come into effect from July 1, 2017.
The 7th CPC recommended allowances to be raised in line with the rate of inflation as reflected in dearness allowance or DA. On similar lines, fully DA-indexed allowances including travel allowance were not raised. Allowances not indexed to DA were increased by a factor of 2.5 while others that were partially indexed to DA got a raise by a factor of 0.8.
House Rent allowance or HRA in accordance with the recommendations of the 7th CPC were rationalized by a factor of 0.8. As against suggested by 7th CPC, HRA for X, Y and Z city categories that is classified based on the population, the minimum HRA has been fixed at Rs. 5400, Rs. 3600 and Rs. 1800 respectively. The floor rate has been calculated based on a rate of 30%, 20% and 10% of the minimum pay of Rs. 18000. The HRA benefit will increase payout of over 7.5 lakh employees across levels from 1 to 3.
The recommendation of the 7th CPC also puts forth that HRA be increased upwards to 27%, 18% and 9% in two phases when dearness allowance exceeds 50% and in the other instance when DA crosses 100% to 30%, 20% and 10% . But the government has decided that the HRA shall be revised at an earlier instance i.e when DA crosses the limit of 25% and 50% respectively. The move will be beneficial for all employees not residing in government quarters and getting HRA.
The approved modifications with respect to allowances shall result in an increase of Rs 1448.23 crore annually in comparison to the projections figure arrived at by the 7th CPC.
GoodReturns.in
