Govt approves 7th pay panel recommendations with 34 modifications
Govt approves 7th pay panel recommendations with 34 modifications
The working civilians have had the mortification of seeing their HRA go down by 20 per cent across the board
29 June, 2017, 09:07
Following are highlights of the approval given by the Cabinet to the recommendations of the 7th Central Pay Commission (CPC) on allowances with some modifications. The revised pay will come in effect from July 1. The 7th Pay Commission's recommendations will have combined additional financial burden of Rs 30,748 crore per annum on the central government.
Finance Minister Arun Jaitley addressed a press conference and said that with 34 modifications the revised rates will be effective from 1 July 2017.
The decision on allowances comes a year after the Union Cabinet had on June 29 last year, approved the salary hikes recommended by the Pay Commission. The Lavasa panel recommended several changes that were referred to an Empowered Committee of Secretaries (E-CoS). It will not be less than Rs 5,400, Rs 3,600 and Rs 1,800 every month calculated at 30 per cent, 20 per cent and 10 per cent of minimum pay of Rs 18,000.
The union cabinet also chose to enhance HRA to 27%, 18% and 9%, respectively when the dearness allowance crosses 25%.
The pay commission also suggested that HRA rates for government employees be reduced by 2-6 per cent as per the cities they worked in. When dearness allowance crosses 50%, it will be increased to 30%, 20% and 10%, respectively for the three categories of cities.
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For the defence personnel in peace areas, Ration Money Allowance will now be given in "cash" and it will be directly transferred to their bank accounts. The officers will now get monthly allowance of Rs 42500, which was earlier Rs 21000.
Meanwhile, the Union Cabinet also approved six-laning of Chakeri-Allahabad section of National Highway - 2 in Uttar Pradesh and will incur a cost of ₹3,691 crore. The commission recommended doing away with 53 of the 196 allowances for Central government employees.
As for 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.
Union Finance Minister Arun Jaitley told media that the Cabinet, which met under the chairmanship of the Prime Minister, has made a decision to increase allowances to pensioners, soldiers and officers posted in Siachen and nurses & ministerial staffs of hospitals. The rates of these allowances have also been enhanced as per the formula adopted by the 7th CPC. "The rates for specific clothing for different categories of employees will be governed separately", the statement said.
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