7th Pay Commission allowances, pension, pay scales: The 7th Pay Commission has recommended an average 23.55 per cent hike in salaries and allowances of Central government staff with minimum pay set at Rs 18,000 per month and maximum pay at Rs 2,50,000 per month. Pay panel recommendations may also also impact bureaucratic allowances like Risk and Hardship Allowance and House Rent Allowance. The Commission has recommended abolishing 52 allowances altogether. Another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances. So, here is all you wanted to know about 7th Pay Commission report recommendations in an easy-to-read manner and all of it in 5 short points:
1. Risk and Hardship Allowance: Allowances relating to Risk and Hardship will be governed by the newly proposed nine-cell Risk and Hardship Matrix, with one extra cell at the top, viz., RH-Max to include Siachen Allowance. The current Siachen Allowance per month and the revised rates recommended are as follows:
This would be the ceiling for risk/hardship allowances and there would be no individual RHA with an amount higher than this allowance.
2. House Rent Allowance: Since the Basic Pay has been revised upwards, the Commission recommends that HRA be paid at the rate of 24 percent, 16 percent and 8 percent of the new Basic Pay for Class X, Y and Z cities respectively. The Commission also recommends that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent respectively when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.
3. In the case of PBORs of Defence, CAPFs and Indian Coast Guard compensation for housing is presently limited to the authorised married establishment hence many users are being deprived. The HRA coverage has now been expanded to cover all.
4. Any allowance not mentioned in the report shall cease to exist.
5. Emphasis has been placed on simplifying the process of claiming allowances.