7th Pay Commission Fitment Factor and House Rent Allowance – No Change Therein is Envisaged
In written reply to a question in Rajya Sabha on 11th December 2018 , Minister of State for Finance Shri P.Radhakrishnan said no change in 7th CPC Fitment Factor and House Rent Allowance.
Increase in Pay Fitment Factor and HRA
“The fitment factor for the purpose of fixation of pay in the revised pay structure based on the recommendations of the 7th Central Pay Commission is 2.57 which is uniformly applicable to all categories of employees. As the same is based on the specific and considered recommendations of the 7th Central Pay Commission, no change therein is envisaged.
The Government vide Resolution dated 6th July, 2017 decided that HRA shall be revised to 27%, 18% and 9% of Basic Pay in X, Y and Z cities when Dearness Allowance (DA) crosses 25% and further to 30%, 20% and 10% of Basic Pay in X,Y and Z cities when DA crosses 50%.”
What is Fitment Factor or Fitment Benefit?
Current Rates of House Rent Allowance for CG Employees
|7TH CPC HRA RATES W.E.F. 1.7.2017|
|City Classification||HRA Rates|
|‘X’ Cities||24% of Basic Pay|
|‘Y’ Cities||16% of Basic Pay|
|‘Z’ Cities||8% of Basic Pay|
7th Pay Commission HRA and Transport Allowance
Cabinet approval on 7th CPC House Rent Allowance (28.6.2017) : HRA is currently paid @ 30% for X (population of 50 lakh & above), 20% for Y (5 to 50 lakh) and 10% for Z (below 5 lakh) category of cities. 7th CPC has recommended reduction in the existing rates to 24% for X, 16% for Y and 8% for Z category of cities.