7th Pay Commission: List of 34 allowances approved by the government with modifications

Here is the list of allowances recommended by the Seventh Central Pay Commission (7 th CPC) along with modifications as approved by the central government.

7th Pay Commission: List of 34 allowances approved by the government with modifications

New Delhi: The resolution conveying the central government's decision on recommendations of the CPC on allowances was published in Gazette of India on July 6

Based on the report of Committee on Allowances (CoA) and the recommendation of E-CoS, the Cabinet had earlier approved the modifications in 34 allowances in its meeting held on 28th June, which will mean an additional annual burden of Rs 30,748 crore on the exchequer.

All allowances are given effect from 1st July 2017.  It will benefit 34 lakh civilian employees and 14 lakh defence personnel.

"The ministries concerned have now been advised to issue their Orders on Allowances governed by them immediately so that the revised rates of allowances get reflected in the current month's salary bills of the government employees," the finance ministry said in a statement.

7th Pay Commission on allowances: Here is the full Notification

The Seventh Central Pay Commission (the Commission) was set up by the Government of India vide Resolution No. 1/1/2013-E. III (A), dated the 28 th February, 2014. The period for submission of report by the Commission was extended upto 31st December, 2015 vide Resolution No. 1/1/2013-E.III (A), dated the 8th September, 2015. The Commission, on 19th November, 2015, submitted its Report on the matters covered in its Terms of Reference as specified in the aforesaid Resolution dated the 28th February, 2014.

2. The Government, vide Para 7 of the Resolution No . 1-2/2016- IC, dated 25th July, 2016, decided to refer the allowances (except Dearness Allowance) to the Committee on Allowances (the Committee). It was also decided that till a final decision on allowances is taken based on the recommendations of the Committee, all allowances will continue to be paid at existing rates in existing pay structure, as if the pay had not been revised with effect from 1st day of January, 2016.

3. The said Committee submitted its Report on 27 th April, 2017. The Government, after consideration, has decided to accept the recommendations of the Commission on allowances with 34 modifications as specified in Appendix I. The Statement showing the recommendations of the Commission on allowances and the Government’s decision thereon is annexed at Appendix II

4. Some of the allowances paid to the Indian Navy which are also paid to the Indian Coast Guard at present have not been mentioned in the Report of the Commission. The Government has decided that these allowances which are admissible to the Indian Navy shall also be paid to the Indian Coast Guard at par with the Indian Navy.

5. The rates in respect of 12 running allowances relating to the Ministry of Railways shall be notified by the Ministry of Railways with the concurrence of the Ministry of Finance.

6. The revised rates of allowances shall be admissible with effect from the 1st July, 2017.
 

List of allowances recommended by the Seventh Central Pay Commission (7 th CPC) along with modifications as approved by the Government of India

Name of the Allowance

Recommendations of the 7th CPC

Modifications accepted by the Government
1 Antarctica Allowance Retained. Rationalised. To
be paid at Rs 31500 for Level 9 and above and Rs 21000 for Level 8 and below as per Cell RH-Max
of the newly proposed Risk and Hardship Matrix

 
To be kept out of Risk and Hardship Matrix and to be paid on per day basis.
Rates revised from Rs 1125 per day to
Rs 1500 per day and from Rs 1688 per day to Rs 2000 per day in
Summer and Winter respectively.
Team Leader to get 10% extra @
Rs 1650 per day and Rs 2200 per day in Summer and Winter
respectively

 
2 Breakdown Allowance Abolished

Retained.
Existing Rates multiplied by 2.25.
Rates revised from Rs 120 –300 per month to Rs 270 – 675 per month

 

3 Cash Handling Allowance Abolished

Subsumed in Cash Handling and Treasury Allowance.

 

4 Coal Pilot Allowance Abolished Retained.
Existing rates multiplied by 2.25.
Rates revised from Rs 45 per trip to Rs 102 for first trip and from Rs 15 per trip to Rs 34 for every subsequent trip.

 
5 Cycle Allowance Abolished Retained. Existing rates of Rs 90 per month doubled to Rs 180 per month for Department of Posts and Railways.
To be retained in other Ministries/Departments
where there is functional justification for any
particular category of staff with the approval of Department of Expenditure.

 
6 Daily Allowance Retained. Rationalized
All provisions will apply to Railways personnel also.

 

Travelling Charges for Level -12 – 13 revised from ‘Non-AC Taxi charges up to 50 km to ‘AC taxi charges upto 50 Kms.’ and for level 14 and above to be revised from ‘AC Taxi charges up to 50 km’ to ‘AC taxi charges as per actual expenditure commensurate with
official engagements’.

Existing system of Daily allowance in the
Ministry of Railways to continue.

 

7 Fixed
Medical
Allowance
(FMA
Retained. Status Quo to be
maintained

 
Existing rate of Rs 500 per month revised to
Rs 1000 per month.

 
8 Fixed
Monetary
Compensation

 
Abolished as a separate
allowance.
Eligible
employees to be governed
by the newly proposed
“Additional
Post
Allowance”

 
Not to be subsumed and retained as a separate allowance.
Existing rates multiplied by 2.25.
Rates revised from
Rs 50 to Rs 115 for full beat and from Rs 24 to Rs 54 for sharing a beat.

 
9 Funeral Allowance Abolished Retained with change in nomenclature as
‘Funeral Expense’.
Existing rate multiplied by 1.5.
Rates revised from Rs 6000 to Rs 9000.

 
10 Holiday
Compensatory
Allowanc
Abolished as a separate
allowance.
Eligible
employees to be governed
by
National
Holiday
Allowance

 
Not to be subsumed and retained as a separate
allowance.
Existing system to continue in Intelligence
Bureau (IB) and Research and Analysis Wing
(RAW)
11 Hospital
Patient
Care
Allowance
(HPCA)/Patient
Care Allowance (PCA)

 
Retained. Rationalised. To
be paid as per Cell R1H3
of the newly proposed
Risk and Hardship Matrix.
HPCA and PCA are
admissible to ministerial
staff as well on the premise
that the entire hospital area
carries
the
risk
of
communicable
diseases.
This practice should be
stopped and HPCA/PCA
should be admissible to
only those employees who
come in continuous and
routine contact with the
patients.

 
Ministerial Staff to continue to get HPCA/PCA
as per R1H3 ( Rs 4100 for level 8 and below and Rs 5300 for level 9 and above) of Risk and Hardship Matrix

 
12 House Rent Allowance (HRA) Retained. Rationalized by
a factor of 0.8

 
The recommendations of the 7th CPC is accepted
with the following modifications:
(ii)
HRA shall not be less than Rs 5,400 per month, Rs 3,600 per month and Rs 1,800 per month calculated @30% of minimum pay for X (population of 50 lakh & above), 20% for Y (5 to 50 lakh) and 10% for Z (below 5 lakh) category of cities.
(ii) HRA shall be revised to 27%, 18% & 9% of Basic Pay in X,Y & Z cities when Dearness Allowance (DA) crosses 25% and further to 30%, 20% and 10% of Basic Pay in X, Y & Z cities when DA crosses 50%.

 
13 Kit Maintenance Allowance Abolished as a separate
allowance. Subsumed in
the newly proposed Dress
Allowance

 
Subsumed in Dress Allowance for Special
Protection Group (SPG) and factored in for determining the revised rates of Dress Allowance for SPG.

 
14 Launch Campaign Allowance Abolished Retained.
Existing rate multiplied by 1.5. Rates revised from Rs 7500 per annum to Rs 11250
per annum.

 
15 Nursing Allowance Retained. Rationalized Existing rates multiplied by 1.5.
Rates revised from Rs 4800 per month to Rs 7200 per month.

 
16 Operation Theatre Allowance Abolished Retained.
Existing rate multiplied by 1.5.
Rates revised from Rs 360 per month to Rs 540 per month.
17 Overtime Allowance (OTA) Abolished
except
for
operational
staff
and
industrial
employees
governed
by
statutory
provisions
Ministries/Departments to prepare a list of those staff coming under the category of ‘operational staff’.
Rates of Overtime Allowance not to be revised upwards.

 
18 Professional
Update
Allowance

 
Retained. Enhanced by
50%. Extended to some
more categories

 
This allowance to continue to be paid to non- gazetted staff of Department of Atomic Energy (DAE).
Existing rate multiplied by 1.5. Rates revised from Rs 7500 per annum to Rs 11250
per annum.

 
19 Qualification Grant Abolished as a separate
allowance.
Eligible
employees to be governed
by the newly proposed
Higher
Qualification
Incentive
for
Defence
Personnel.
Tier-II of the Technical
Allowance as well as the
Qualification Grant will be
merged
into
Higher
Qualification Incentive for
Defence Personnel

 
7th CPC recommendations accepted with the
modifications that:
(i)
This will not include Tier – II
courses, and
(ii)
Courses will be reviewed by associating
experts,
including
outside
professionals
and
academicians by 31.12.2017.

 
20 Ration
Money
Allowance
(RMA)

 
Retained. Rationalized.
Provision of free rations
and the grant of Ration
Money
Allowance
to
officers of Defence forces
posted in peace areas
should be withdrawn

 
Provision of free ration for officers of Defence
Forces shall be discontinued in peace areas.
RMA shall continue to be paid to officers of
Defence Forces posted in peace areas. The cash shall be credited directly into the bank accounts of officers.

 
21 Risk Allowance Abolished Retained.
Existing rate multiplied by 2.25.
Rates revised from
Rs 60 per month to Rs 135 per month
22 Siachen Allowance Retained. Rationalised. To
be paid at Rs 31500 for
Level 9 and above and
below as per Cell RH-Max
of the newly proposed
Risk and Hardship Matrix.

Rs 21000 for Level 8 and
 

Rates revised from: Rs 31500 to Rs 42500 per month for Level 9 and
above, and
Rs 21000 per month to Rs 30000 per month for level
8 and below

 

23 Space Technology Allowance Abolished Retained.
Existing rate to be multiplied by 1.5.
Rates revised from
Rs 7500 per annum to Rs 11250 per annum
24 Special
Appointment
Allowance

Abolished as a separate
allowance.
Eligible
employees to be governed
by the newly proposed
“Extra Work Allowance".

Granted to Central Armed
Police Force Personnel
holding
special
appointments

 

To include Assistant Sub Inspector (Radio
Mechanic), Assistant Sub Inspector (Radio
Operator) and Sub Inspector (Radio Mechanic) in
the list eligible for Extra Work Allowance @2%
of Basic Pay per month with the conditions
recommended by the 7
th CPC.

 
25 Special
Compensatory
(Remote Locality) Allowance
(SCRLA)

 
Abolished as a separate
allowance.
Eligible
employees to be governed
by the newly proposed
Tough Location Allowance
(TLA) -I, II or III.
Tough
Location
Allowance will not be
admissible
along
with
Special Duty Allowance.

 
7th CPC recommendations that Tough Location
Allowance (TLA) will not be admissible along
with Special Duty Allowance (SDA) accepted
subject to condition that employees be given the
additional option to avail of the benefit of
Special
Compensatory
(Remote
Locality)
Allowance (SCRLA) at pre-revised rates under
the 6th
CPC regime along with SDA at revised
rates of 7th CPC

 
26 Special
Duty
Allowance
(SDA)

 
Retained. Rationalized by
a factor of 0.8.
SDA for All India Service
(AIS) officers should be
paid at the rate of 30
percent of Basic Pay and
for
other
civilian
employees at the rate of 10
percent of Basic Pay.

 
As per DoPT’s OM No. 14017/4/2005-AIS (II)
dated 10
th
February, 2009, ‘Special Allowance
for Officers belonging to North – East Cadres of All India Service (AIS) officers’ is granted
@25%.
Special Duty Allowance (SDA) is granted
@12.5%.
Rationalized by a factor of 0.8.
Both
these
allowances
namely
‘Special
Allowance for Officers belonging to North –
East Cadres of AIS’ and Special Duty Allowance
(SDA shall continue to be paid separately as at
present at the revised rates of 20% and 10% respectively.

 
27 Special
Incident/Investigation/Security
Allowance

 

Retained. Rationalized by
a factor of 0.8.
Department of Revenue
should assess the risk
profile of the officials of
the
Enforcement
Directorate (ED) at various
levels and thereafter make
a case to Ministry of Finance for grant of Risk
and Hardship Allowance, if
any, as per appropriate cell.

 

This allowance was granted to Enforcement
Directorate as an ad – hoc measure with the
approval of Department of Expenditure pending
recommendations of the 7th CPC. Accordingly,
this allowance to be withdrawn from ED with effect from 01.07.2017. As per recommendations
of the 7th
CPC, Department of Revenue to
examine proposal or Risk & Hardship allowance for ED to make a case to Ministry of Finance for
granting Risk and Hardship based allowance to
ED officials, if any.

 
28 Special
Running
Staff
Allowance

 
Retained.
Extended
to
some more categories

 
Name of the allowance to continue as
‘Additional Allowance’.

 
29 Technical Allowance Tier-I of the Technical
Allowance will continue to
be paid on a monthly basis.
Tier-II of the Technical
Allowance as well as the
Qualification Grant will be
merged
into
Higher
Qualification Incentive for
Defence Personnel

 
Existing system of Technical Allowance (Tier – I
and II) to continue at
Rs 3000 per month and Rs 4500 per month up to 31.03.2018.
Courses of Technical Allowance (Tier –I and II along with Qualification
Grant (Higher
Qualification Incentive for Defence Personnel) to
be reviewed by associating experts, outside
professionals and academicians in order to keep
pace with changing defence requirements.
Review of Courses to be completed before
31.12.2017.
Technical Allowance (Tier – II) to continue
beyond 31.03.2018 only after review of courses.

 
30 Training Allowance Retained. Rationalized by
a factor of 0.8. Extended to
some more categories.
The allowance will be
payable to an eligible
employee for a maximum
period of five years only
during the entire career.

 
Ceiling of 5 years period to be removed.
Standard cooling off period between tenures will
apply.

 
31 Travelling Allowance Retained. Rationalized.
Indian
Railways
to
reconsider
its
position
regarding air travel to its
employees.

 
Level 6 to 8 of Pay Matrix to be entitled for Air
travel.
Level 5 A of Defence Forces to be clubbed with
Level 6 for travelling entitlements.
Existing system to continue in Ministry of
Railways.

 
32 Treasury Allowance Abolished Subsumed in Cash Handling and Treasury
Allowance.

 
33 Uniform Allowance Abolished as a separate
allowance. Subsumed in
the newly proposed Dress
Allowance and to be paid
annually.

 
 
34 Washing Allowance Abolished as a separate
allowance. Subsumed in
the newly proposed Dress
Allowance

 
Subsumed in Dress Allowance in respect of Nurses and factored in for determining the
revised rates of Dress Allowance for Nurses.