Employee Today

Sunday, 3 July 2016

HRA Calculation’s needs some more direction

The sentence used in the Cabinet Decision notification on 7th CPC for the Allowance parts needs further clarification. The statement which makes people interpret in different ways is “Till a final decision, all existing Allowances will continue to be paid at the existing rates.”

Usage of word “Existing Rates” can be understood in multiple ways

Use the Old Basic Pay to calculate the HRA percentage (or) Use the revised basic pay as per 7th CPC Matrix and derive the new HRA percentage.

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