The Union Cabinet has approved the 7th Pay Commission‘s recommendation of revising HRA (Home Rent Allowance) and other allowances on Wednesday. Finance Minister Arun Jaitley said that 34 modifications recommended by the 7th Pay Commission have been cleared.
The Narendra Modi government will implement the revised allowances in a planned structure from July. The revised structure will cost the state an exchequer of estimated Rs 30.78 Crore.
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Narendra Modi after returning from his 3-day tour chaired the last Union Cabinet meeting of this month. The Commission examined 197 allowances for Central Government employees and recommended merging the 37 bigger ones and scrapping 53 of them.
HRA (Home Rent Allowance) is expected to decrease from 30 to 24 percent in metro cities and 2-6 percent in X, Y, Z cities.