1. 7th Pay Commission: Big gift from Narendra Modi Cabinet to over 47 lakh government employees; recommendations on allowances, HRA cleared

7th Pay Commission: Big gift from Narendra Modi Cabinet to over 47 lakh government employees; recommendations on allowances, HRA cleared

Modi Cabinet approved recommendations of 7th Pay Commission on allowances on Wednesday.

By: | Updated: June 28, 2017 7:59 PM

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Now, over 47 lakh government employees have a reason to smile.7th pay commission allowance news 2017 HRA: It is a big gift from the Narendra Modi government to the over 47 lakh Central government employees as the Cabinet on Wednesday approved the recommendations on allowances, HRA in terms of 7th Pay Commission report. Announcing the big development, Finance Minister Arun Jaitley said, “Union Cabinet has approved Recommendations of 7th CPC on Allowances with 34 modification.” Also, Jaitley added that revised rates will be effective from 1 July 2017.  The approval came after the Lavasa Committee suggested modifications in some allowances applicable universally to all employees and also for those in specific categories, including railways and defence, after examining the 7th Pay Commission recommendations. The Finance Secretary Ashok Lavasa-led Committee on Allowances, which was constituted by the government to examine the Central Pay Commission (CPC) recommendations on allowances, had submitted its report to Finance Minister Arun Jaitley in the last week on April. There is about 47 lakh central government employees.

WATCH: What all Arun Jaitley said after Modi Cabinet approved 7th Pay Commission recommendation on HRA, allowances:-

Earlier, according to a statement released by the Union Finance Ministry said, “Modifications were suggested in some allowances which are applicable universally to all employees as well as certain other allowances which apply to specific employee categories such as railwaymen, postal employees, scientists, defence forces personnel, doctors, nurses etc.”

After the Lavasa committee submitted the report, it was examined by the Department of Expenditure. Then it was placed before the Empowered Committee of Secretaries (E-CoS) set up to screen the 7th CPC recommendations and to firm up the proposal for approval of the Cabinet.

While recommendations of the CPC on pay and pension were implemented with the approval of the Cabinet, allowances were continued to be paid at old rates.

The Committee was set up in view of significant changes recommended by the CPC in the allowances structure and a large number of representations received in this regard from various staff associations as well as the apprehensions conveyed by various ministries and departments. The CPC had recommended that of a total of 196 allowances, 52 be abolished altogether and 36 be abolished as separate identities by subsuming them in another allowance.

The Seventh Pay Commission panel had recommended abolition of or subsuming of allowances like acting, assisting cashier, cycle, condiment, flying squad, haircutting, rajbhasha, rajdhani, robe, shoe, shorthand, soap, spectacle, uniform, vigilance and washing. The committee held extensive stakeholder consultations and detailed examination of the recommendations so as to address the concerns of the stakeholders.

It was reported by news agency PTI that if the 7th CPC recommendations on allowances are implemented fully, then as per estimates the cost to the exchequer will be Rs 29,300 crore.

  1. A
    Arun Pathak
    Jun 28, 2017 at 8:12 pm
    What will be the rate of field compensatory allowance ( FCA ) by the 7th CPC recommendations?
    Reply

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