7th Pay Commission: HRA update and bunching of stages in revised pay structure

Sources say that the Cabinet would discuss the issue.

With the draft on higher allowances and HRA as per the 7th Pay Commission ready, central government employees will have to wait just one more day for a clear update. The draft rules are being discussed by the Empowered Committee of Secretaries (E-CoS). On June 1 the same will be placed before the Union Cabinet.

Sources say that the Cabinet would discuss the issue. A final call would be taken after Prime Minister Narendra Modi returns from his four-nation tour which began yesterday. A high-level committee headed by the Finance Secretary, Ashok Lavasa had on April 27 submitted its report to Finance Minister Arun Jaitley.

The committee on allowances has reportedly given its view in favour of AK Mathur-led 7th Pay Commission recommendation, regarding decrease in house rent allowance (HRA) by 2-6 percent depending on type of cities.

The 7th Pay Commission headed by AK Mathur had earlier proposed the rate of House Rent Allowance (HRA) at 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.

Kept in the dark

Meanwhile the National Council (staff side), representing the central government employees have expressed anger and anguish over the fact that the recommendations of the Lavasa committee report was not shared with them.

It is a matter of deep regret that even after submission of the report by the said committee, the same has not been made available to the staff side (JCM), therefore we do not know what recommendations have been made," said Shiv Gopal Mishra, the secretary of National Council. The employees have been kept in the dark for the past 10 months, he also said.

Bunching of stages in revised pay structure

The Ministry of Personnel, Public Grievances and Pension had written regarding bunching of stages in the revised pay structure. In the letter it was stated," I am directed to say that after revision of pay scales w.e.f 01.01.2016, the pay of a member of Service drawing pay at two or more stages in pre-revised Pay Band and Grade Pay or scale and gets fixed at same Cell in the applicable Level in the new Pay Matrix, one additional increment shall be given for every two stages bunched and the pay of member of Service drawing higher pay in pre-revised structure shall be fixed at the next vertical Cell in the applicable Level as per the Proviso (a) to Rule 4 (A) of the IAS (Pay) Rules, 2016."

Fixation of pay

The letter further read, "this Department has been receiving queries from various Ministries / Departments / State Governments for fixation of pay in respect of members of Service whose pay gets fixed at the same Cell,in the applicable Level in the new Pay Matrix. The matter was clarified vide OM No.13021/1/2016-AIS-I (Pt.2) dated the 10th October, 2016 (copy enclosed). It is once again clarified that as per Rule 4 (A)(ii) of IAS (Pay) Rule, 2016, in cases of fixation of pay of IAS officers drawing pay at two or more stages in the pre-revised Pay Band and Grade Pay gets fixed at the same Cell in the applicable Level of the Pay Matrix, one additional increment may be given for every two stages bunched so that the pay of the member of Service drawing higher pay in the pre-revised structure is fixed at the next vertical Cell in the applicable Level.

Fitting in the new pay matrix

"If two members of Service drawing pay of Rs.53000 and Rs.54590 in the GP 10000 are to be fitted in the new pay matrix, the member of Service drawing pay of Rs.53000 on multiplication by a factor of 2.57 will expect a pay corresponding to Rs.1,36,210 and the member of Service drawing pay of Rs.54590 on multiplication by a factor of 2.57 will expect a pay corresponding to Rs. 1,40,296. Revised pay of both should ideally be fixed in the first cell of level 14 in the pay of Rs. 1,44,200 but to avoid bunching the member of Services drawing pay of Rs.54590 will get fixed second cell of level 14 in the pay of Rs.1,48,500."

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