7th pay commission: Cabinet agrees to hike allowances for govt staff

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Arun-Jaitley-300Central government employees can finally heave a sigh of relief as the Union Cabinet on Wednesday approved the 7th Pay Commission’s (SPC) recommendations for hiked allowances of government employees, including house rent allowances (HRAs).

This decision, which comes 18 months after the SPC recommended the hiking of allowances is likely to affect more than 50 lakh central government employees – both serving and retired. HRA makes up 60 per cent of the total allowance of a government employee’s pay.

The Union Cabinet modified the recommendations made by the SPC, which will be applicable from July 1.

The Union Cabinet had not been able to take a decision on this matter in its last meeting on June 7. Central government employees are likely to start receiving the revised allowances under the SPC from July.

The approved HRA will be 24 per cent, 16 per cent and 8 per cent of the revised basic pay, depending on the type of city and its population.  According to a report in Hindustan Times, a government statement read “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”.

The financial implication of revised allowances would be around Rs 30,748 crore per annum, the statement said.

Other allowances that have been revised are:

Rates of Siachen allowance for soldiers has been hiked 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.

The mandatory medical allowance given to pensioners has been increased from Rs 500 to Rs 1,000 per month.

The allowance for keeping constant attendance for those with 100 per cent disability has been increased from Rs 4,500 to Rs 6,750 per month.

Rate of nursing allowance has been hiked from Rs 4,800 to Rs 7,200 per month.

The allowance for operation theatre has been increased from Rs 360 to Rs 540 per month.

Hospital patient care allowance has been increased from Rs 2,070 to Rs 4,100 per month.