Following article has been
published in a popular website,"The Sen Times" dated 14/9/2015.
"The Seventh Pay Commission
is likely to propose to increaseHouse Rent Allowance (HRA) of central government employees, besides their basic salaries.
By
giving House
Rent Allowance hikes, the Pay
Commission is likely to seek to encourage property owners to rent out their properties, reduce the shortage of
dwellings and to provide ‘housing for all central government employees’.
Besides
the basic salary, a large portion of central government employees’ salary is
the House
Rent Allowance; some changes will be made in that category this time.
Instead
of the existing three areas for house rent, four are likely to be created. ‘X’
class cities Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai
and Pune, where employees will get 40 percent of their basic salary asHouse
Rent Allowance (HRA), increasing from the existing 30 percent.
Employees
posted at ‘Y’ class cities covers near about 90 stations, will receive 30
percent of basic salary, instead of the existing 20 percent.
A new
area will be opened for the district towns; the central government employees
will get 20 percent of their basic salary as House Rent Allowance (HRA) there.
In
other areas, the house rent allowance will be 10 percent of basic, which is the existing
rate of House Rent Allowance(HRA)
of ‘Z’ class cities.
The
existing qualifying threshold of population for HRA classification is 50 lakh
and above for X, 5-50 lakh for Y and below 5 lakh for Z class cities.
However,
the central government’s salary bill will rise by 9.56% to Rs 1,00,619 crore
with the implementation of therecommendations of the Seventh Pay Commission, according to a
statement tabled in Parliament by Union Finance
Minister
Arun Jaitley on August 12."
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