New Delhi, April 14: Major changes are could be made to the salaries of central government employees, with the Ashok Lavasa committee all set to submit its recommendations for changes in allowances under the seventh pay commission. While the committee is looking at abolishing or subsuming various allowances, it is particularly focused on revising the current rates of the House Rent Allowance (HRA).
The House Rent Allowance (HRA) is paid by the government to all the employees as a fixed amount that goes towards their accommodation needs. With central government employees often having to move around the country due to transfers, the HRA plays a crucial role. However, the sum is given even if the employee is living in his/her own house.
The HRA forms a significant amount of an employees’ salary and currently constitutes about 30 percent of the same i metro cities. However, the Lavasa committee is looking at reducing the rate to 24 percent in metros, a move that has not particularly gone well.
The seventh pay commission has recommended that the HRA be extended according to the type of city an employee is living in. As per the classification, cities have been segregated into three classes; X, Y and Z. Here is the complete list of cities and the class under which they belong:
