Thursday, June 30, 2016

HRA in 7th pay commission after cabinet approval: Existing Rate or Amount


The Pay commission has recommended HRA should be rationalized by using the factor 0.8 which is used for rationalising the percentage based allowances. The 7th CPC recommended 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively. The Commission also recommended that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent [ See the 7th CPC recommendation on HRA ]The cabinet committee reviewed the recommendations on Allowances and they are not able to give a decision over the Allowances. Hence the Union Cabinet  decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. And it is said that the Committee will complete its work in a time bound manner and submit its reports within a period of 4 months.

In the press release issued by government said the following” The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.”
The above press release  concluded with a statement ” Till a final decision, all existing Allowances will continue to be paid at the existing rates” [Courtesy GServant]Since the House Rent Allowance also listed among one of these 196 Allowances, the status HRA will clear after Finance Ministry's Order. Now the situation may be divided in two possibilities:-
First Possibility: HRA at existing Rate of 30%, 20% and 10% for class X, Y and Z respectively. It is clear that recommendations of 7th CPC has reduced the existing rate of HRA with linking it increase in Dearness Allowance.  HRA at existing rate in new pay structure will give 157% increase in comparison to pre revised HRA vis-a-vis 4% increase in recommended HRA,  Therefore, least possibility to get the HRA at existing rate in new pay structure and it is also complicate to calculate HRA only at existing rate on pre revised basic pay.
Second Possibility: Fixed HRA amount equal to last drawn in pre-revised pay structure. The second possibility will reduce the increase in present HRA and the arrears of HRA may be drawn after proposed committee' recommendations.  Thus govt and employees will avoid any recovery in HRA after committee's recommendations.
Whether these existing rates of HRA will be paid based on revised pay or fixed amount of pre revised pay..? It needs to be clarified when implementation of 7th pay commission is in process.




7th CPC and beyond



7 th CPC & beyond
Both the options recommended by the 7th Commission as regards pension revision vide their para 10.1.67 have been accepted subject to feasibility of their implementation. Option 2 is to be implemented immediately.

In case option one is finally accepted for which ‘Bharat Pensioners Samaj’ is fighting tooth & nail, the pensioner will have the option to choose whichever is more beneficial to him/her

The objection of DOPW &MOD against option 1 is that records may not be available to implement. It is a very poor & illogical argument to deprive pensioners of their legitimate right. Service record of an employee is permanent in nature & cannot be destroyed without specific permission under
specific circumstances. In case for any reason if anyone’s service record is missing it can always be reconstructed with the help of PPO, various other records with the departments & with the employee/pensioner. In 100% cases PPOs are available, in 95% cases all other records too are available. Pensioners too are having authentic records required for the purpose.

OPTION 1- Pension of Pre 2016 Pensioners w.e.f. 01.01.2016 (Based on the 7th CPC Report Chapter 10.1 and Pay Matrix for Civilian Employees conditionally accepted by the Govt.
PB
GP
Min Pensn in
VI CPC
Level of VII CPC
Age
Option 1 Rev Min Pens with 2.57 Multiple
Option 2 - Revised Pension with Increments @ 3% PA for Number of INCREMENTS EARNED  WHILE IN SERVICE
Number of  INCREMENTS EARNED in that level WHILE IN SERVICE
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
1

1800
3665
1
Up to 80
9419
9000
9250
9550
9850
10150
10450
10750
11050
11400
11750
12100
12450
12800
13200
13600
14000

80-85
11303
10800
11100
11460
11820
12180
12540
12900
13260
13680
14100
14520
14940
15360
15840
16320
16800

85-90
12245
11700
12025
12415
12805
13195
13585
13975
14365
14820
15275
15730
16185
16640
17160
17680
18200
1

1900
3890
2
Up to 80
9997
9950
10250
10550
10850
11200
11550
11900
12250
12600
13000
13400
13800
14200
14650
15100
15550

80-85
11997
11940
12300
12660
13020
13440
13860
14280
14700
15120
15600
16080
16560
17040
17580
18120
18660

85-90
12996
12935
12935
12935
12935
12935
12935
12935
12935
12935
12935
12935
12935
12935
12935
12935
12935
1

2400
4920
4
up to 80
12644
12750
13150
13550
13950
14350
14750
15250
15700
16150
16650
17150
17650
18200
18750
19300
19900

80-85
15173
15300
15780
16260
16740
17220
17700
18300
18840
19380
19980
20580
21180
21840
22500
23160
23880

85-90
16438
16575
17095
17615
18135
18655
19175
19825
20410
20995
21645
22295
22945
23660
24375
25090
25870
1

2800
5585
5
up to 80
14353
14600
15050
15500
15950
16450
16950
17450
17950
18500
19050
19600
20200
20800
21400
22050
22700

80-85
17224
17520
18060
18600
19140
19740
20340
20940
21540
22200
22860
23520
24240
24960
25680
26460
27240

85-90
18659
18980
19565
20150
20735
21385
22035
22685
23335
24050
24765
25480
26260
27040
27820
28665
29510
2

4200
6750
6
up to 80
17348
17700
18250
18800
19350
19950
20550
21150
21800
22450
23100
23800
24500
25250
26000
26800
27600

80-85
20817
21240
21900
22560
23220
23940
24660
25380
26160
26940
27720
28560
29400
30300
31200
32160
33120

85-90
22552
23010
23725
24440
25155
25935
26715
27495
28340
29185
30030
30940
31850
32825
33800
34840
35880
2

4600
9230
7
up to 80
23721
22450
23100
23800
24500
25250
26000
26800
27600
28450
29300
30200
31100
32050
33000
34000
35000

80-85
27062
26940
27720
28560
29400
30300
31200
32160
33120
34140
35160
36240
37320
38460
39600
40800
42000

85-90
30837
29185
30030
30940
31850
32825
33800
34840
35880
36985
38090
39260
40430
41665
42900
44200
45500
2

4800
9375
8
up to 80
24094
23800
24500
25250
26000
26800
27600
28450
29300
30200
31100
32050
33000
34000
35000
36050
37150


80-85
27005
28560
29400
30300
31200
32160
33120
34140
35160
36240
37320
38460
39600
40800
42000
43260
44580


85-90
31322
30940
31850
32825
33800
34840
35880
36985
38090
39260
40430
41665
42900
44200
45500
46865
48295
2

5400
10140
9
up to 80
26060
26550
27350
28150
29000
29850
30750
31650
32600
33600
34600
35650
36700
37800
38950
40100
41300

80-85
31272
31860
32820
33780
34800
35820
36900
37980
39120
40320
41520
42780
44040
45360
46740
48120
49560

85-90
33878
34515
35555
36595
37700
38805
39975
41145
42380
43680
44980
46345
47710
49140
50635
52130
53690
3

5400
(JS)
11070
10
up to 80
26985
28050
28900
29750
30650
31550
32500
33500
34500
35550
36600
37700
38850
40000
41200
42450
43700

80-85
32382
33660
34680
35700
36780
37860
39000
40200
41400
42660
43920
45240
46620
48000
49440
50940
52440

85-90
35081
36465
37570
38675
39845
41015
42250
43550
44850
46215
47580
49010
50505
52000
53560
55185
56810
3

6600
(SS)

12600
11
up to 80
32382
33850
34850
35900
37000
38100
39250
40450
41650
42900
44200
45550
46900
48300
49750
51250
52800

80-85
38858
40620
41820
43080
44400
45720
47100
48540
49980
51480
53040
54660
56280
57960
59700
61500
63360

85-90
42097
44005
45305
46670
48100
49530
51025
52585
54145
55770
57460
59215
60970
62790
64675
66625
68640
3

7600
(JAG)
14960
12
up to 80
38450
39400
40600
41800
43050
44350
45700
47050
48450
49900
51400
52950
54550
56200
57900
59650
61450

80-85
46140
47280
48720
50160
51660
53220
54840
56460
58140
59880
61680
63540
65460
67440
69480
71580
73740

85-90
49980
51220
52780
54340
55965
57655
59410
61165
62985
64870
66820
68835
70915
73060
75270
77545
79885
4
8700
(SG)
23050
13
up to 80
59239
59250
61050
62900
64800
66750
68750
70800
72900
75100
77350
79650
82050
84500
87050
89650
92350

80-85
71086
71100
73260
75480
77760
80100
82500
84960
87480
90120
92820
95580
98460
101400
104460
107580
110820

85-90
77010
77025
79365
81770
84240
86775
89375
92040
94770
97630
100555
103545
106665
109850
113165
116545
120055
4
8900
24295
13A
up to 80
62438
65550
67500
69550
71650
73800
76000
78300
80650
83050
85550
88100
90750
93450
96250
99150
102100

80-85
74926
78660
81000
83460
85980
88560
91200
93960
96780
99660
102660
105720
108900
112140
115500
118980
122520

85-90
81170
85215
87750
90415
93145
95940
98800
101790
104845
107965
111215
114530
117975
121485
125125
128895
132730
4
10000
(SAG)
27350
14
up to 80
70290
72100
74250
76500
78800
81150
83600
86100
88700
91350
94100
96900
99800
102800
105900
109100

80-85
84347
86520
89100
91800
94560
97380
100320
103320
106440
109620
112920
116280
119760
123360
127080
130920

85-90
91376
93730
96525
99450
102440
105495
108680
111930
115310
118755
122330
125970
129740
133640
137670
141830

NOTE: Based on the recommendations of 7th CPC vide Para 10.1.67 of its Report, an ALL-IN ONE table for pension has been prepared from where the likely pension can be determined easily.
·          The table covers all the 5th CPC scales from S 4 to S 29 (except S 6) grouped in 4 PBs after 6th CPC. These have been assigned Levels 1 to 14 in the matrix table by 7th CPC.
·          The table also gives  pension for pensioners falling in 3 age groups i.e. upto 80 years and with additional pension @ 20% and 30% after the age of 80 and 85 respectively.
·          Since the pension as per option 2 may take time, the pension as per option 1 (with a factor of 2.57) may be paid in the first instance as an interim measure.
·          Pension as per option-1 is to be calculated on the basis of pension as fixed after 6th CPC. This being different for pensioners retiring from the same scale, the figures in the table under option -1 are according to the minimum revised basic pension as per DOP OM dated 30-7-2015. The Pension is to be finally fixed at the higher of the two Options.
·                      In some levels like levels 6, 10, 11, 12, 13 and 14, there is no common min revised pension as per 6th CPC (differing with each scale though GP is same). The table can accommodate only one figure.  Therefore, in such cases lowest of the figure has been taken as representative of the respective level.
Compiled by  N.P . MOHAN C.E (Retd.) Railways ,Life member BPS &President RSCWS  (An affiliate of BPS)

                                                                                               Option 2
Revised basic pension of as on 01.01.2016 = Existing basic pension as on 01.01.2016 X 2.57 = Revised basic pension +Nil DR as on 01.01.2016
Option 2 is to be implemented immediately
In case option one is finally accepted for which BPS is fighting tooth & nail the pensioner will have the option to choose whichever is more beneficial to him/her
 Sd/
S.C.Maheshwari
Secy General Bharat Pensioners Samaj