1. 7th Pay Commission report on revised allowances: Central government employees may get revised wages from July 18

7th Pay Commission report on revised allowances: Central government employees may get revised wages from July 18

Over 4.9 million central government employees will likely start receiving revised allowances, including for house rents, from July, 18 months after their pays were hiked as per the Seventh Pay Commission’s award.

By: | New Delhi | Updated: June 9, 2017 1:26 PM
7th Pay Commission, seventh pay commission, revised allowances under 7th Pay Commission, 7th Pay Commission india, staff wages, staff wages under 7th Pay Commission, Seventh Pay Commission award, 7th pay commission award The pay panel had given an overall 23.55% increase in pay, allowances and pensions, including 16% pay rise, 63% surge in allowances and 23.6% increase in pension.

Over 4.9 million central government employees will likely start receiving revised allowances, including for house rents (HRA), from July, 18 months after their pays were hiked as per the Seventh Pay Commission’s (SPC) award. While the payout will help consumption — private consumption growth had decelerated a bit in the final quarter of last fiscal and analysts see an incipient pick-up in spending — as the Reserve Bank of India observed in its second bimonthly monetary policy statement for FY18 on Wednesday, it could pose an upside risk to inflation. The RBI has projected retail inflation to be 2-3.5% in the first half and 3.5-4.5% in the second half of the year. The delay in disbursal of the revised allowances has saved the exchequer rs 2,200 crore a month or Rs 40,000 crore cumulatively since January 1, 2016, but the government might partly compensate employees for this with a more generous HRA than recommended by the panel, say sources.

HRA in cities with population above 5 million could be 27% of the basic pay, against the commission’s proposal of 24%, the sources said. The existing HRA in such cities is 30% of the old basic pay — since the SPC hiked the basic pay by an overall 23.55% (weighted average), these allowances will see a big increase in absolute terms. HRA accounts for about 60% of the total allowances bill. The Cabinet would take up the proposals related to allowances later this month, the sources confirmed.

The Ashok Lavasa-led committee on allowances, which was constituted by the government to examine the CPC recommendations, had submitted its report on April 27. The panel has suggested modifications in some allowances applicable universally to all employees and also for those in specific categories, including railways and defence. The report was later placed before the empowered committee of secretaries headed by the Cabinet secretary to firm up the proposals for approval by the Cabinet.

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The SPC had suggested the abolition of 52 benefits and merger of 36 with existing ones to end their separate identities. It had estimated the financial implication of revised allowances would be around Rs 29,300 crore (including for the railways) in a year (Rs 2,442 crore a month).

7th Pay Commission, seventh pay commission, revised allowances under 7th Pay Commission, 7th Pay Commission india, staff wages, staff wages under 7th Pay Commission, Seventh Pay Commission award, 7th pay commission award

In the 2017-18 Budget, the government has not explicitly provided for additional costs to be incurred after implementation of the revised allowances under CPC. The officials are confident that the additional burden on the exchequer would be largely be met from savings from allocations made to various departments for the year.

On June 29, 2016, the government accepted the pay- and pension-related recommendations of CPC for over 10 million central government staffers and pensioners, entailing additional cost of Rs 84,933 crore in 2016-17. The Centre’s allowance expenditure is pegged at Rs 69,222 crore (excluding defence) in FY18, 7% higher than the Rs 64,677 crore in FY17, factoring in business-as-usual growth in expenditure. The pay panel had given an overall 23.55% increase in pay, allowances and pensions, including 16% pay rise, 63% surge in allowances and 23.6% increase in pension.

  1. S
    Sanat Mishra
    Sep 21, 2017 at 11:20 am
    Please mention the names of the companies in which the 7th Pay commission is implemented. Otherwise we are unable to know actually who is Government employees.
    Reply
    1. S
      S c joshi
      Jul 9, 2017 at 2:41 pm
      Please upload simple table of increased allowances so that everyone get through easily..
      Reply
      1. R
        Rajan
        Jun 29, 2017 at 5:07 pm
        It is rather strange that the govt is again spending considerable share of the tax money for increasing the comforts of those (govt employees) who are already well-off. When lakhs of qualified and competent youngsters are more than willing to take up any job on much lesser ry, the act of the govt is unjust, unfair and illogical. When a pen is available in the market at Rs. 10/-, will anybody pay Rs. 100/- for it? Even Mukesh Ambani will not. But that is what our govt. is doing. It is widening the gap between the private and govt sectors. After all, everybody has to live in the same society. Are govt. employees the only citizens of India? The ministers should apply at least a bit of common sense.
        Reply
        1. T
          Tawar Ashok
          Jun 15, 2017 at 10:26 pm
          . satishfactory.
          Reply
          1. R
            rama shanker
            Jun 11, 2017 at 6:25 pm
            The people of India will give their reports on this government in 2019 similar in line of shining India in 2004. In 2004 Late Mr promod Mahajan defeated Bajpayee Government with his signing India. In 2004 Mr Arun Jaitley will bring down Modi government with his digital India.
            Reply
            1. A
              Achinta Banerjee
              Jun 10, 2017 at 6:21 pm
              The word" savings" by means of depriving employees of their due allowances recommended by cpc is ridiculous. The protracted negotiations and absolute silence in this regard shows this government's apathy towards its employees. The circus continues.
              Reply
              1. S
                Sardar Kumar Meena
                Jun 10, 2017 at 3:54 pm
                What happening anyone will tell me what about the minimum ry will be increase from July
                Reply
                1. S
                  Sardar Kumar Meena
                  Jun 10, 2017 at 11:35 am
                  I am thinking that Shri Arun Jettly ji is not worried about the Railways Trackmans Employees Minimum ry I am requesting to all Railways Track maintainers by this Post please please please stand up against the government and announce to a big strike on the next Month
                  Reply
                  1. S
                    Sardar Kumar Meena
                    Jun 10, 2017 at 11:29 am
                    Koi bhi Officers mujhe ye batayega ki Railways ke tracmain bhaiyo ki kum se kum tankhah kitni hogi jb sbhi bhaton Ko fix kr diya jayega
                    Reply
                    1. S
                      Sardar Kumar Meena
                      Jun 10, 2017 at 11:25 am
                      I want to know about that what will be minimum ry for Railways Track maintainer employees after all things considered and all allowances fixation Please please please Anyone Tell me
                      Reply
                      1. S
                        Sardar Kumar Meena
                        Jun 10, 2017 at 11:22 am
                        Everybody of central government employees are want to know about the minimum ry will be how much increase in the ry after allowance fixation and what will be happen with railway Trackmans the lowest conditions of the tracmaintainers at this time is very bad so I request to Shri Modi ji Please please please do something as soon as possible for Railways Track maintainer
                        Reply
                        1. Y
                          Yogesh Kumar
                          Jun 10, 2017 at 8:18 am
                          Jaitlly is only reason to whose work is feel guilty in modi government Jaitlly ek din LOC par jakar return aa e Jo Jan 2016 se Jun 2017 Tak posted out hoye Hai uska Paisa Kon dega aur Konsa jaitlly apni pocket se denga public ka Paisa Hai Kisi k baap ka nai
                          Reply
                          1. L
                            LS Prajapati
                            Jun 10, 2017 at 12:58 am
                            Modi govt. is doing well but his govt. has cheated govt. employees. As per his promise govt. Employees were to get new ry from 1/1/2016 itself as repory was already submitted to govt in August end. But in the name of revision in favour of govt employees, implimentation of report was dala till date otherwise full benefit of allowances along with new basic. Now the govt has postponed implementing og allowance from July, 2018. It is nothing but cheating govt employees. I beleive so.
                            Reply
                            1. G
                              goitam voswami
                              Jun 10, 2017 at 2:23 pm
                              Govt is not cheating rather the recognized union leaders specially the railway federation leaders are cheating with the worker. Unless we are understand this truth we will be cheated for next period also.Time now call for a alternative leadership .
                              Reply
                            2. B
                              Babu chakraborty
                              Jun 9, 2017 at 10:59 pm
                              No need to approve . Lets wait for next pay commission. Please. Sir don't struggle more for us. Things are late as it is. No need to hurry...take all your time. Probably it won't happen this year. Really it is unexpected from the government.
                              Reply
                              1. R
                                rajiv
                                Jun 9, 2017 at 10:04 pm
                                v. bad 1 and half year is gone but govt is in suspence..................why youth generation is going abroad......because there is no responsibility of any one in any matter....
                                Reply
                                1. V
                                  vs goomber
                                  Jun 9, 2017 at 7:19 pm
                                  7TH PAY COMMISSION DELAY KYON HO RAHA HAI...............KYA GOVERNMENT EMPLOYEES KE HAQ KA INTEREST KHA JAAYE GI YE BJP SARKAAR ..AISA PEHLI BAAR HO RAHA HAI... ..............IT IS LEARNT RBI AUR SARKAAR KI MAALI HALAT THEEK NAHIN HAI.................SIRF GOVERFNMENT EMPLOYEES KO DENE KE LIYE............LEADERS KI VIDESH YATRA KE LIYE PAISE KI KOI KAMI NAHIN...............LOOTO........LOOTO...........SARKARI KARAMCHAARI ...........BAJAO TAALI...................KARO YOGA.............KARO CHAMCHAGIRI.................KUCH NAHIN MILNE WALA ..........IS BJP SARKAAR SE........SARKAARI KARAMCHAARI KI JEB KHAALI......... BAJAO TAALI.............BAJATE RAHO.....2019 TAK............
                                  Reply
                                  1. S
                                    Saikumar
                                    Jun 9, 2017 at 6:00 pm
                                    Sir iam cisf ko be milaga
                                    Reply
                                    1. N
                                      Noren
                                      Jun 9, 2017 at 5:57 pm
                                      For Keeping inflation in control, holding payment to employee who are in expectations for last many years is not appropriate
                                      Reply
                                      1. S
                                        Shaik Abdul Jabbar
                                        Jun 9, 2017 at 5:43 pm
                                        It has to effect let them give next commission why done immediately because RLY very poor project.AsRly merged genl budget already.why can't merged muni lity. Improve Irctc & multi national company s
                                        Reply
                                        1. A
                                          Ajay Bhardwaj
                                          Jun 9, 2017 at 4:46 pm
                                          Its July17.
                                          Reply
                                          1. X
                                            Xyz
                                            Jun 9, 2017 at 4:06 pm
                                            Union bodies of central government are doing nothing...just making money by the leaders.....................
                                            Reply
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