Union Cabinet approves recommendations of 7th Pay Commission on allowances

New Delhi: Union Cabinet has approved recommendations of 7th Pay Commission on allowances on Wednesday.

Finance Minister Arun Jaitley said that the Seventh Pay Commission's recommendations have been cleared with 34 modifications. The revised rates will be effective from 1 July 2017.

With the Cabinet taking the final call today, it is being widely expected that the central government employees will get revised allowances from July month salary.

The increased allowance will impose an additional annual burden of Rs 30,748 crore on the exchequer.

The modification, which is based on the recommendations of Committee on Allowances, will result in additional burden of Rs 1,448 crore over and above suggestions made by 7th Central Pay Commission.

Briefing reporters after the cabinet meeting, Finance Minister Arun Jaitley said that House Rent Allowance will be paid at 24 per cent, 16 per cent and eight per cent for X,Y, Z cities respectively.

He said HRA will not less than Rs 5,400, Rs 3,600 and Rs 1,800 for X,Y, Z cities calculated at 30, 20 and 10 per cent of minimum pay of Rs 18,000. 

"The CPC recommended revision of HRA when DA reaches 50 per cent and 100 per cent. The government decided to revise rates when DA crosses 25 per cent and 50 per cent respectively," he said. 

HRA is admissible to central government employees depending upon classification of the city/town where they are posted. Cities and towns are classified `X`,`Y`& `Z` based on their population. 

Jaitley said that fixed medical allowance for pensioners has been increased from Rs 500 to Rs 1,000 per month. The constant attendance allowance on 100 per cent disablement has been increased from Rs 4,500 per month to Rs 6,750 per month. 

The Minister said the government has increased rate of nursing allowance from Rs 4,800 to Rs 7,200 per month. 

Operation Theatre allowance has increased from Rs 360 per month and Rs 540 per month. The hospital patient care allowance has been increased from Rs 2,070-Rs 2,100 to Rs 4,100-Rs 5,300 per month. 

With Agency Inputs