The Committee on Allowances as part of the 7th Pay Commission has submitted its report on House Rent Allowance (HRA) to the government earlier this week.
NDTV India reported that Centre is expected to make an announcement on implementation of hike in allowances including HRA as per 7th Pay Commission after March 8, 2017. Increase in allowances are expected to come in force from April 1, 2017.
As per the 7th Pay Commission, HRA should be paid at the rate of 24%, 16% and 8% of the new Basic Pay, depending on the type of cities while unions demanded HRA at 30, 20 and 10%.
The Committee on Allowances is headed by Finance Secretary Ashok Lavasa who in October 2016 had said that his team is ready with the report.
The report further claimed that transport allowance (TA) has been divided into two categories, CCA and TA. It further said that demands of employees have been met and HRA will be paid according to the 6th Pay Commission report.