New Delhi: The Union Cabinet had approved recommendations of 7th CPC on allowances with 34 modifications – revised rates effective from July 1, 2017, thus benefitting 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.
The 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, % based rationalised by 0.8. Risk & Hardship Matrix evolved for allowances linked to risk and hardship
7th CPC projected additional financial implication at Rs 29,300 crore per annum, modifications to have additional implication of Rs 1448.23 crore. Combined additional financial implication estimated at Rs 30,748.23 crore per annum. Here Are The Major highlights of the allowances approved by the Union Cabinet.
1. Number of allowances recommended to be abolished and subsumed:
-Government decided not to abolish 12 allowances in view of specific functional requirements
-3 of 37 subsumed allowances will continue as separate identities due to unique nature of these allowances.
2. House Rent Allowance (HRA)
-HRA will be paid @24%, 16% & 8% for X, Y & Z cities respectively
-HRA not to be less than Rs.5400, 3600 & 1800 for X,Y&Z cities, calculated @30,20,&10% of min pay of Rs 18,000 – to benefit >7.5 lakh employee
-7th CPC recommended revision of HRA when DA reaches 50% & 100%, Govt decided to revise rates when DA crosses 25% and 50% respectively.
3. Siachen Allowance
-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.
4. Dress Allowance
-Government decided to pay Dress Allowance to Nurses on monthly basis due to high maintenance and hygiene requirements.
-Higher rate of Dress Allowance for Special Protection Group accepted by Govt.
5. Allowances to Pensioners
-Fixed Medical Allowance for Pensioners increased from Rs.500 pm to Rs.1000 pm
-Constant Attendance Allowance on 100% disablement increased from Rs.4500 pm to Rs.6750 pm