Sunday, 21 January, 2018

Govt approves 7th pay panel recommendations, effective from July 1

7th Pay Commission Cabinet decision has shocked govt employees Govt approves 7th pay panel recommendations, effective from July 1
Nellie Chapman | 29 June, 2017, 09:06

The Union Cabinet increased Fixed Medical Allowance for pensioners to Rs 1,000 per month from Rs 500 per month that was paid earlier. The government said that the revised allowance will come into effect from July 1, 2017.

The government is said to be keen on implementing the revised allowance from July 1 and National Joint Council of Action (NJCA) chief had explained that "things are in the process and most probably would be placed in the next Cabinet meeting".

"Government has chose to pay higher rate of Dress Allowance to SPG personnel keeping in view the existing rates of Uniform Allowance paid to them (which is higher than the rates recommended by the 7th CPC) as also their specific requirements", he said. Finance Minister Arun Jaitley said that the recommendations of the Seventh Pay Commission in favor of the employees have been accepted.

According to a report by IndiaToday, Finance Minister Arun Jaitley will place the recommendation report before the Cabinet today. The 7th Pay Commission had recommended that TLA will not be admissible with Special Duty Allowance (SDA) payable in North-East, Ladakh and the Islands.

The HRA rates will be revised when Dearness Allowance (DA) crosses 25 per cent and 50 per cent respectively. Of these, the government decided not to do away with 12 allowance, he said.

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.

Now, if you are a central government employee and thinking how much more you will get it, then here's how you can calculate.

The Union Cabinet chaired by Prime Minister Narendra Modi approved the decision.

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.

Now, as per 7th Pay Commission, the new entry level pay at this level is Rs 18,000 per month against which the new HRA for a Class X city would be Rs 5,400 per month, that is around 157 percent more than the existing level. Hostel subsidy will also go up from Rs 4,500 per month to Rs 6,750 per month.

Siachen allowance has been increased from Rs 14,000 to Rs 30,000 per month for soldiers and fromRs 21,000 to Rs 42,500 per month for officers.

The modifications approved by the Government in the recommendations of the 7th CPC on allowances will lead to a modest increase of Rs 1448.23 crore per annum over the projections made by the 7th CPC.