As per 7th Pay Commission news today, the Narendra Modi led Union Cabinet has cleared the long pending business of allowances that would have brought good news to some 48 lakh employees of the central government who had been waiting for months for the situation to be clarified. The wait is now over. The Cabinet has approved the 7th Pay Commission recommendations on allowances, but with as many as 34 modifications. The news was later confirmed by Finance Minister Arun Jaitley. The hike in allowance, which comes into effect from July 1, will impose an additional annual burden of Rs 30,748 crore on the exchequer. The modification, which is based on the recommendations of Committee on Allowances, will result in an additional burden of Rs 1,448 crore over and above suggestions made by 7th Central Pay Commission. The government says that it 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. However, what is definitely playing on the minds of the employees is whether a number of allowances were recommended to be abolished and subsumed. So, listed below is all you want to know about them as per the official notification:
Government has decided not to abolish 12 of the 53 allowances which were recommended to be abolished by the 7th CPC. The decision to retain these allowances has been taken keeping in view the specific functional requirements of Railways, Posts and Scientific Departments such as Space and Atomic Energy. It has also been decided that 3 of the 37 allowances recommended to be subsumed by the 7th CPC will continue as separate identities. This has been done on account of the unique nature of these allowances. The rates of these allowances have also been enhanced as per the formula adopted by the 7th CPC. This will benefit over one lakh employees belonging to specific categories in Railways, Posts, Defence and Scientific Departments.