NEW DELHI: The Finance Ministry today notified a list of allowances recommended by the 7th Pay Commission along with 34 modifications approved by the Union Cabinet on 28 June 2017. The increased allowances will come into effect from 1 July, 2017. It will put an additional annual burden of Rs 30,748-crore on the exchequer.
Concerned ministries have been advised to issue their orders on allowances governed by them immediately so that the revised rates of allowances get reflected in the current month’s Salary Bills of the Government employees.
The Seventh Pay Commission’s allowances would have cost the exchequer Rs 29,300-crore, but the modified allowances are set to increase the burden by Rs 1,448-crore to Rs 30,748-crore per annum.
The 7th Pay Commission suggested abolition of 53 allowances. Of these, the Government decided not to do away with 12, he had said as it will benefit over one-lakh employees belonging to specific categories in Railways, Postal department, defence and scientific departments.
Some of the major highlights of the allowances approved by the Union Cabinet are: Cabinet approved recommendations of 7th CPC on allowances with 34 modifications — revised rates effective from 01.07.2017.
It will benefit 34-lakh civilian employees and 14-lakh Defence Forces personnel.
7th CPC examined 197 allowances, recommending abolition of 53 allowances and subsuming 37 in others.
7th CPC recommended revised rates commensurate with Dearness Allowance.
Fully DA-indexed allowances — no raise, not DA indexed raised by 2.25, partially indexed raised by 1.5 per cent, based rationalised by 0.8 per cent.
Risk & Hardship Matrix evolved for allowances linked to risk and hardship 3 of 37 subsumed allowances will continue as separate identities due to unique nature of these allowances.
HRA will be paid at the rate of 24per cent, 16 per cent & 8 per cent for X, Y & Z cities respectively.
HRA not to be less than Rs 5,400, 3,600 & 1,800 for X,Y&Z cities, calculated at 30, 20 and 10 per cent of min pay of Rs 18,000 to benefit more than 7.5-lakh employee.
7th CPC recommended revision of HRA when DA reaches 50 per cent & 100 per cent, Govt decided to revise rates when DA crosses 25per cent and 50per cent respectively.
Rates of Siachen Allowance increased from Rs 14,000 pm (Soldiers) to Rs 30,000 & Rs 21,000 pm (Officers) to Rs 42,500 for extreme risk & hardship.
Government decided to pay Dress Allowance to Nurses on monthly basis due to high maintenance and hygiene requirements. (AGENCIES)
Follow our WhatsApp channel