Wednesday, 28 June 2017

Cabinet Clears 7th Pay Commission's Allowances

Delhi: There was a great news for nearly 47 lakh central employees on Wednesday evening. The cabinet approved the proposal for change on the basis of the recommendations of the seventh pay commission in the allowance to the government employees in a key decision. Government employees will be able to meet the increased allowance from July 1. After the implementation of this, the government will have a financial burden of Rs 30,748 crore.

Announcing this, Finance Minister Arun Jaitley said that the Cabinet has approved the increase in the HRA, which is available to government employees, by the recommendations of the Pay Commission.

New rates of HRA
-When a government employee gets 25% of DA Basic Pay, then HRA will get 27%, 18% and 9% for cities of different categories.
When a government employee gets 50% of the DA Basic, HRA will get 30%, 20% and 10% for cities of different categories.
- A floor will be fixed for lower level employees, their HRA will be fixed on the same basis.

Increase in Siachen allowance
-The Seventh Pay Commission recommended 31,500 for level 9 and above.
-The government has decided to increase it to 42,500.
-The Seventh Pay Commission recommended 21,000 for level 8 and below.
The government has decided to increase it to 30,000.

Increase in employees' allowances
- Free medical allowance was increased from 500 rupees to 1000 rupees per month to pensioners.
The employees of the Remote areas have been improved in the provision of special compensability allowance.
-Technical allowance has been reorganized

The Govt. employees were awaiting a decision from the Government on the issue of 7th Pay Commission Allowances. So, in today's cabinet meeting government employees were expecting a discussion on the Cabinet note related to the Allowance.

Importantly, PM Narendra Modi had returned from overseas tour on Tuesday night and due to this the meeting scheduled for Wednesday morning was scheduled for five o'clock in the evening. For the last few weeks due to some reasons the discussion on the issues related to the Seventh Pay Commission was not being discussed in the Cabinet meeting and it was increasing the wait in the staff. It was being said that this issue was not being kept in the Cabinet meeting ever because of the absence of finance minister Arun Jaitley and the Finance Ministry officials in Delhi.

Sources of the employees' associations said that the Committee of Secretaries had prepared a Cabinet note after discussion on this issue.


Let the Union employees wait for nearly a year for the government's decision on the issue of HRA in addition to other alliances. It may be mentioned that on June 28 last year, the government had decided to implement the recommendations of the Seventh Pay Commission. The government had announced the implementation of the recommendations of the Pay Commission from January 1, 2016, but after several recommendations of the Pay Commission, the Central employees expressed their objections on many issues. There was also a dispute about the allowances in these issues.

The government had constituted a committee for this. The committee submitted its report to the Finance Minister on 27th April. This report was sent to the committee of empowered secretaries on behalf of the Finance Ministry. Now after discussing this report, on June 1, the Empowered Committee of Secretaries had prepared a Cabinet note.

Importantly, the Central Staff was entitled to 196 types of allowances before the Seventh Pay Commission, but the seventh pay commission had abolished or had merged several avenues, after which only 55 vacancies were left. All employees were uncomfortable with the abolition of a number of allowances.


The Narendra Modi government had approved the recommendations of the 7th Pay Commission in 2016 and implemented the report of the 7th Pay Commission from January 1, 2016. But, due to disagreements over many issues with allowances, the recommendations were not fully implemented.

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