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7th Pay Commission: Cabinet approves hike in allowances for central govt staff from July 1
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7th Pay Commission: Cabinet approves hike in allowances for central govt staff from July 1
In a move that will benefit about 50 lakh central government employees
and defence personnel, the Union cabinet on Wednesday approved the
recommendations of the 7th Pay Commission for higher allowances,
including house rent allowance (HRA).
The HRA that has been approved will be 24%, 16% and 8% of the new basic pay, depending on the type of city.
The HRA will not be less than Rs 5,400, Rs 3,600 and Rs 1,800 depending
on the type of city and calculated at 30%, 20% and 10% of minimum pay Rs
18,000,” a government statement said.
The HRA revision will benefit more than 7.5 lakh employees.
HRA constitutes 60% of the total allowance of a government employee’s
pay.
The move could help revive demand at a time when the economy has sagged
after the government’s decision last year to junk 1000-and 500-rupee
bank notes that led to a severe cash crunch. A buoyed consumer sentiment
could also translate into political goodwill for the ruling BJP as the
party heads into another round of state elections, beginning with
Gujarat by December.
The financial implication of revised allowances would be around Rs 30,748 crore per annum, the statement said.
The cabinet decision comes more than a year after the pay of central government employees was increased.
Other allowances increased
* Rates of Siachen allowance for soldiers increased from Rs 14,000 to Rs
30,000 per month and from Rs 21,000 to Rs 42,500 for officers per month
for extreme risks and hardship.
* Fixed medical allowance for pensioners increased from Rs 500 to Rs 1,000 per month.
* Constant attendance allowance for those with 100% disability has been increased from Rs 4,500 to Rs 6,750 per month.
* Rate of nursing allowance increased from Rs 4,800 to Rs 7,200 per month.
* Operation theatre allowance increased from Rs 360 to Rs 540 per month.
* Hospital patient care allowance/patient care allowance increased from
Rs 2,070 to Rs 4,100 per month and Rs 2,100 to Rs 5,300 per month.
Cabinet Approval on Fixed Medical Allowance & Constant Attendance Allowance
7th CPC: Cabinet Approval on Fixed Medical Allowance & Constant Attendance Allowance
10. Recommendations in respect of some important allowances paid to Pensioners
Rate of Fixed Medical Allowance (FMA) for Pensioners has been increased
from ₹500 per month to ₹1000 per month. This will benefit more than 5
lakh central government pensioners not availing CGHS facilities.
i. The rate of Constant Attendance Allowance granted on 100% disablement
has been increased from ₹4500 per month to ₹6750 per month.
Click here for : 7th Pay Commission: Highlights of Cabinet approval on Allowances
Recommendations in respect of some important allowances paid to all employees:
(i) Rate of Children Education Allowance (CEA) has been increased from ₹1500 per month / child (max. 2) to ₹2250 per month / child (max.2). Hostel Subsidy will also go up from ₹4500 per month to ₹6750 per month.
(ii) Existing rates of Special Allowance for Child Care for Women with Disabilities has been doubled from ₹1500 per month to ₹3000 per month.
(iii) Higher Qualification Incentive for Civilians has been increased from ₹2000 – ₹10000(Grant) to ₹10000 – ₹30000 (Grant)
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