1. 7th Pay Commission on allowances: Read what the Narendra Modi government said

7th Pay Commission on allowances: Read what the Narendra Modi government said

Much to the relief of 48 lakh government employees, the Narendra Modi government has finally given the clearance to the allowances recommended by the 7th Pay Commission panel.

By: | New Delhi | Published: June 29, 2017 2:51 PM
 Narendra Modi, arun jaitley, 7th Pay Commission, 7th Pay Commission on allowances, Committee on Allowances, Risk and Hardship Matrix The implementation of these allowances would cost the government Rs 30,748 crore per year. (Representative Image/PTI)

7th Pay Commission allowances news today 2017: Much to the relief of 48 lakh government employees, the Narendra Modi government has finally given the clearance to the allowances recommended by the 7th Pay Commission panel, which is above those recommended by the initial report earlier. There are 34 modifications and about 12 of the 53 allowances proposed for abolition are set to be retained. The implementation of these allowances would cost the government Rs 30,748 crore per year as against the projected Rs 29,300. The extra expenses are for the Railways, Posts and Space and Atomic Energy department. The allowances shall come into effect from July 1. However, there is no clarification about the arrears or when and if, they will be granted. Check out what the Narendra Modi government said about the 7th Pay Commission report:

The revised rates of the allowances shall come into effect from 1st July, 2017 and shall affect more than 48 lakh central government employees. While approving the recommendations of the 7th CPC on 29th June, 2016, the Cabinet had decided to set up the Committee on Allowances (CoA) in view of substantial changes in the existing provisions and a number of representations received. The modifications are based on suggestions made by the CoA in its Report submitted to Finance Minister on 27th April, 2017 and the Empowered Committee of Secretaries set up to screen the recommendations of 7th CPC. He added that the recommendations of the Seventh Pay Commission in favour of the employees have been accepted and minor changes have been made. Here is the Full Text of the 7th CPC recommendations on Allowances:

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The 7th CPC had adopted a three-pronged approach in examining a total of 197 allowances which involved an assessment of the need for continuation of each allowance, appropriateness of the set of people covered by the allowance and rationalisation which involved clubbing of allowances with similar objectives. Based on the examination on these lines, the 7th CPC recommended that 53 allowances be abolished and 37 be subsumed in an existing or a newly proposed allowance.

For most of the allowances that were retained, the 7th CPC recommended a raise commensurate with inflation as reflected in the rates of Dearness Allowance (DA). Accordingly, fully DA-indexed allowances such as Transport Allowance were not given any raise. Allowances not indexed to DA were raised by a factor of 2.25 and the partially indexed ones by a factor of 1.5. The quantum of allowances paid as a percentage of pay was rationalised by a factor of 0.8.

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A new paradigm has been evolved to administer the allowances linked to risk and hardship. The myriad allowances, their categories and sub–categories pertaining to civilians employees, CAPF and defence personnel have been fitted into a table called the Risk and Hardship Matrix (R&H Matrix). The Matrix has nine cells denoting varying degrees of risk and hardship with one extra cell at the top named as RH – Max to include Siachen Allowance. Multiple rates applicable to individual allowances will be replaced by two slab rates for every cell of the R&H Matrix.

While increasing the rate of allowances affecting the central government employees, especially the Defence, CAPF and Coast Guard personnel, the staff of Railways, Postal department and nursing staff, the total number of allowances have been rationalized from 197 to 128. Thus, the Government has shown a great deal of fiscal prudence and at the same time addressed the genuine concerns of the employees and responded to some of the administrative exigencies necessitating the modifications.

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