1. 7th pay commission on allowances: Check out the Highlights of what the Modi Cabinet cleared today for 48 lakh central staff

7th pay commission on allowances: Check out the Highlights of what the Modi Cabinet cleared today for 48 lakh central staff

7th Pay Commission news today on allowance Highlights: Prime Minister Narendra Modi led Union Cabinet gave clearance to the allowances and HRA that will bring cheer good news to 48 lakh employees of the central government - the same was confirmed by Finance Minister Arun Jaitley later in the evening.

By: | Updated: June 29, 2017 10:00 AM
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7th Pay Commission news today on allowance Highlights: Prime Minister Narendra Modi led Union Cabinet gave clearance to the allowances and HRA that will bring cheer good news to 48 lakh employees of the central government – the same was confirmed by Finance Minister Arun Jaitley later in the evening. He said that the recommendations of the Seventh Pay Commission in favour of the employees have been accepted and minor changes have been made. This policy will come into effect from July 1. Centre in a statement said, “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.” It started off by saying, “7th Pay Commission allowances news today 2017: The Union Cabinet chaired by the Prime Minister Narendra Modi approved the recommendations of the 7th Pay Commission on allowances with some modifications.” Highlights of Cabinet approval on Allowances:

1. Number of allowances recommended to be abolished and subsumed: 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.

2. House Rent Allowance

HRA is currently paid @ 30% for X (population of 50 lakh & above), 20% for Y (5 to 50 lakh) and 10% for Z (below 5 lakh) category of cities. 7th CPC has recommended reduction in the existing rates to 24% for X, 16% for Y and 8% for Z category of cities. 7th CPC had also recommended that HRA rates will be revised upwards in two phases to 27%, 18% and 9% when DA crosses 50% and to 30%, 20% and 10% when DA crosses 100%.
3. Siachen Allowance

7th CPC had placed Siachen Allowance in the RH-Max cell of the R&H Matrix with two slabs of ₹21,000 and ₹31,500. Recognizing the extreme nature of risk and hardship faced by officers / PBORs on continuous basis in Siachen, the Government has decided to further enhance the rates of Siachen Allowance which will now go up from the existing rate from ₹14,000 to ₹30,000 per month for Jawans & JCOs (Level 8 and below) and from ₹21,000 to ₹42,500 per month for Officers (Level 9 and above).

4. Dress Allowance

At present, various types of allowances are paid for provisioning and maintenance of uniforms/outfits such as Washing Allowance, Uniform Allowance, Kit Maintenance Allowance, Outfit Allowance etc. These have been rationalised and subsumed in newly proposed Dress Allowance to be paid annually in four slabs @ ₹5000, ₹10,000, ₹15,000 and ₹20,000 per annum for various category of employees.

5. Tough Location Allowance

Some allowances based on geographical location such as Special Compensatory (Remote Locality) Allowance (SCRLA), Sunderban Allowance & Tribal Area Allowance have been subsumed in Tough Location Allowance. The areas under TLA have been classified into three categories and the rates will be governed as per different cells of R&H Matrix and will be in the range of ₹1000 – ₹5300 per month.

6. Recommendations in respect of some important allowances paid to all employees:

Rate of Children Education Allowance (CEA) has been increased from ₹1500 per month / child (max. 2) to ₹2250 per month / child (max.2). Hostel Subsidy will also go up from ₹4500 per month to ₹6750 per month.

7. Recommendations in respect of some important allowances paid to Uniformed Services: Defence, CAPFs, Police, Indian Coast Guard and Security Agencies

The 7th CPC has recommended abolition of Ration Money Allowance (RMA) and free ration to Defence officers posted in peace areas. It has been decided that Ration Money Allowance will continue to be paid to them and directly credited to their account. It will benefit 43000 Defence officers.

8. Recommendations in respect of some important allowances paid to Indian Railways

i. Rates of Additional Allowance have been increased from ₹500 / 1000 per month to ₹1125 / 2250 per month. This has also been extended to Loco Pilot Goods and Senior Passenger Guards also @₹750 per month.

9. Recommendations in respect of some important allowances paid to Nurses & Ministerial Staffs of Hospital

i. Existing rate of Nursing Allowance has been increased from ₹4800 per month to ₹7200 per month.

ii. Rate of Operation Theatre Allowance has been increased from ₹360 per month to ₹540 per month.

10. Recommendations in respect of some important allowances paid to

Pensioners

Rate of Fixed Medical Allowance (FMA) for Pensioners has been increased from ₹500 per month to ₹1000 per month. This will benefit more than 5 lakh central government pensioners not availing CGHS facilities.

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