7th Pay Commission allowances get government nod, revised rates effective from July 1

7th Pay Commission Allowances: The decision to retain these allowances was taken keeping in view the specific functional requirements of Railways, Posts and scientific departments like Space and Atomic Energy, a government statement said.

By: Express News Service | New Delhi | Updated: June 29, 2017 4:20 pm
7th pay commission, 7 pay commission, seventh pay commission, allowances, hra allowance, revised salary 7th pay commision, arun jaitley, Finance Minister Arun Jaitley (File)

The government on Wednesday gave its approval to the recommendations of the seventh Central Pay Commission after making 34 modifications, including a decision to retain 12 of the 53 allowances that were proposed to be abolished. The Union Cabinet accepted the modifications suggested by a Committee on Allowances set up by the government last year following the submission of the seventh pay commission report and an Empowered Committee of Secretaries constituted to screen the recommendations.

The implementation of the pay commission recommendations will cost the government an estimated Rs 30,748 crore per year. This is slightly more than the Rs 29,300 crore per year projected by the pay commission report. The extra Rs 1,448 crore accounts for the payment of allowances that the government has decided to retain against the advice of the pay commission. The decision to retain these allowances was taken keeping in view the specific functional requirements of Railways, Posts and scientific departments like Space and Atomic Energy, a government statement said. It is likely to benefit about 1 lakh employees working in these departments.

Most of the modifications, including retention of these allowances, relate to “continuing requirement” of existing arrangements, administrative exigencies and further rationalisation of allowance structure, it said.Decisions that would benefit all government employees include an increase in the children education allowance from Rs 1,500 per month a child to Rs 2,250 to a maximum of two children. Hostel subsidy has also been hiked from Rs 4,500 per month to Rs 6,750 per month. Similarly, special allowance for child care for women with disabilities has been doubled from Rs 1,500 per month to Rs 3,000 per month. Higher Qualification Incentive for civilian employees, in the form of a grant, has been raised from the bracket of Rs 2,000-10,000 to Rs 10,000-30,000.

Decisions that would benefit all government employees include an increase in the children education allowance from Rs 1,500 per month a child to Rs 2,250 to a maximum of two children. Hostel subsidy has also been hiked from Rs 4,500 per month to Rs 6,750 per month. Similarly, special allowance for child care for women with disabilities has been doubled from Rs 1,500 per month to Rs 3,000 per month. Higher Qualification Incentive for civilian employees, in the form of a grant, has been raised from the bracket of Rs 2,000-10,000 to Rs 10,000-30,000.The government has also decided that the house rent allowance would not be less than Rs 5,400 in X category of cities (with population of 50 lakh and above), Rs 3,600 in Y category (with population between 5 and 50 lakh) and Rs 1,800 in Z category (with population below 5 lakh). Currently, HRA is paid at the rate of 30 per cent of basic salary for X category, 20 per cent for Y category and 10 per cent for Z category of cities. The pay commission had recommended that these rates be reduced to 24 per cent, 16 per cent and 8 per cent, respectively. But the government calculated a floor rate to protect the interests of employees in lower pay bracket, the statement said. This move is expected to benefit nearly 7.5 lakh employees, it said.

The government has also decided that the house rent allowance would not be less than Rs 5,400 in X category of cities (with population of 50 lakh and above), Rs 3,600 in Y category (with population between 5 and 50 lakh) and Rs 1,800 in Z category (with population below 5 lakh). Currently, HRA is paid at the rate of 30 per cent of basic salary for X category, 20 per cent for Y category and 10 per cent for Z category of cities. The pay commission had recommended that these rates be reduced to 24 per cent, 16 per cent and 8 per cent, respectively. But the government calculated a floor rate to protect the interests of employees in lower pay bracket, the statement said. This move is expected to benefit nearly 7.5 lakh employees, it said.

A range of additional benefits for defence personnel, including those working in central paramilitary forces, has also been approved. This includes an increase in Siachen allowance and high altitude allowance, and retention of ration money allowance.

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  1. R
    R P SINGH
    Jun 30, 2017 at 1:10 pm
    What ABOUT fAMILY pLANNING ALLOWANCE IN 7TH PAY COMMISSION
    Reply
    1. B
      Bharat Politics
      Jun 29, 2017 at 1:00 pm
      You put your nod for 7th pay commission because you are losing nothing. You can earn money on may ways. You Politician or Minister, whether ensured 100 deliver from govt offices. No. You can't do. Because many undergound earthings are there. Without bribe how many govt employee can complete do the public job. For each and every job, govt people need bribes. It is still going on. I am not getting my EPS pension. I perusing hardly I know without bribe I will not get a single coin. Number of times, communicated to govt. machinery even to Finance Minister through whatsup, but no response. Similarly any area you look up, everywhere we need to pay bribe. Where is Achcha Din. P M Modi govt is linking Adhaar Card, Pan Card , but ultimately it is going to be a big loot by the govt. people politicians. Next era we can hear a very big scam, Very few 2 people may be right in Govt offices for them why govt want to introduce 7th pay commission.
      Reply
      1. R
        Rajesh
        Jun 29, 2017 at 9:46 am
        It was all predecided. Govt purposely delayed implementation ny one year and still did not increased HRA percentage. It saved Rs. 30000 thousand crore.
        Reply
        1. D
          Dr P
          Jun 29, 2017 at 11:14 am
          For the past one year the Finance Minister has been fooling public that hefty allowances in store,all these was stage managed for an year in name of committees and finally report is totally a flattened baloon
          Reply
          1. G
            gsshah
            Jul 12, 2017 at 9:10 am
            very bad allowance effective 1-7-2017
        2. R
          Ravikumar Srinivasan
          Jun 29, 2017 at 9:05 am
          Dear Honourable finance minister Sir, Please look into the issues facing bank pensioners gracefully. Without your benevolence we will march to our deaths with wretched feeling of being orphans in this Barathvarsh to which we have been loyal, patriotic and honest till our retirement from the bank in which we worked.
          Reply
          1. V
            Vijayaraghavan
            Jun 29, 2017 at 12:39 pm
            A request from a senior citizen to the Hon'ble Finance Minister to be considerate to the pensioners of the autonomous ins utions of the GOI and to kindly issue necessary instructions to the concerned Ministries to meet the additional expenditure completely due to 7th CPC recommendations and to release the last two instalments of DR. The pensioners will ever be grateful.
            Reply