Allowances for 7th pay panel cleared

Tribune News Service

New Delhi, June 28

In a move that will benefit over 48 lakh Centre Government employees, the Union Cabinet today approved recommendations of the 7th Central Pay Commission (CPC) on increasing allowances, including HRA. The move will have an additional financial implication of Rs 30,748.23 crore.

The recommendations, approved with 34 modifications, will come into effect from July 1. The modifications will result in an additional burden of Rs 1,448 crore over and above the suggestions made by the pay panel. The total number of allowances has been rationalised from 197 to 128.

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The government has decided not to abolish 12 of the 53 allowances that the CPC had recommended to be abolished. The decision to retain these allowances has been taken keeping in view the specific functional requirements of the Railways, posts and scientific departments.

Three of the 37 allowances recommended to be subsumed by the 7th pay panel will continue as separate identities. This has been done keeping in view the unique nature of these allowances. The rates of these allowances have also been enhanced as per the formula adopted by the pay panel. This will benefit over one lakh employees belonging to specific categories.

At present, HRA is paid at 30 per cent for X (population of 50 lakh and above), 20 per cent for Y (5 to 50 lakh) and 10 per cent for Z (below 5 lakh) categories of cities.

The pay panel has recommended reduction of rates to 24 per cent, 16 per cent and 8 per cent for X, Y and Z categories of cities, respectively. However, the allowance will not be less than Rs 5,400, Rs 3,600 and Rs 1,800 for X, Y and Z category of cities, respectively. This will benefit more than 7.5 lakh employees belonging to levels 1 to 3.

For pensioners, the rate of fixed medical allowance (FMA) has been increased from Rs 500 per month to Rs 1,000 per month. This will benefit more than five lakh pensioners not availing CGHS facilities. The rate of “constant attendance allowance” (granted on 100 per cent disablement) has been increased from Rs 4,500 per month to Rs 6,750 per month. The rate of “children education allowance” has been increased from Rs 1,500 per month to Rs 2,250 per month while hostel subsidy will go up from Rs 4,500 per month to Rs 6,750 per month.