Today is a big day for 47 lakh staff at Centre, Modi government may announce hike in Cabinet meet today.

The Union Cabinet is likely to decide on the hike in HRA and other allowances under the 7th Pay Commission on Wednesday, ending the long wait of nearly 1 crore central government employees and pensioners. The 7th Pay Commission had recommended the House Rent Allowance (HRA) to be fixed at 24%, 16% and 8% depending on the city of work. Employees, however, had demanded 30%, 24% and 16% HRA.

The Ashok Lavasa-led committee, constituted to arrive at a consensus, had on April 28 suggested changes in some allowances applicable to central government employees and also for those in specific categories, including Railways and Defence.

The Union Cabinet may fix HRA rates between recommendations of AK Mathur panel and 6th CPC/existing, most likely at 27 per cent.

The Union Finance Ministry in a statement had confirmed that modifications have been suggested in some allowances.