A useful blog for Government Employees on news updates of 7th pay commission, Dearness Allowance, DOPT Orders, CGHS, CSD, LTC, HRA, Pensioners, Railway orders and other relevant informations

Wednesday, 28 June 2017

7th Pay Commission Allowances : Here are the 10 things to know

The Cabinet yesterday has approved the recommendation of the 7th pay commission on allowances including HRA or House Rent Allowance with 34 modifications which will be applicable with effect from July 1, 2017. The move is likely to benefit 34 lakh central government employees and 14 lakh defence personnel. The revised allowances are likely to cost the government an additional Rs. 30,748.23 crore per annum. The 7th pay commission examined 197 allowances and recommended abolition of 53 allowances and subsuming 37 in others.

7th Pay Commission Allowances: Here are 10 things to know:


1. HRA will be paid at the rate of 24 per cent, 16 per cent and 8 per cent of new basic pay.

2. Also, the government said HRA will not be less than Rs. 5,400, Rs. 3,600 and Rs. 1,800, which are calculated at 30, 20 and 10 per cent of minimum pay of Rs. 18,000. 

3. The revised minimum HRA will benefit 7.5 lakh Central government employees, the government said.

4.  The 7th pay commission had also recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent when DA or dearness allowance crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when it crosses 100 per cent. Now, the government decided to revise HRA rates when DA crosses 25 per cent and 50 per cent respectively.

5. For pensioners, the medical allowances have been doubled to Rs. 1,000, compared to Rs. 500 earlier. Constant attendance allowance on 100 per cent disablement increased from Rs. 4,500 to Rs. 6,750.

6. Meanwhile, the government has also increased the nursing allowance paid to nurses and ministerial staffs of hospitals to Rs. 7,200 per month from Rs. 4,800 earlier.

7. Operation theatre allowance increased from Rs. 360 per month to Rs. 540 per month and hospital patient care allowance (HPCA)/ patient care allowance (PCA) revised from Rs. 2,070-Rs. 2,100 to Rs. 4,100-Rs. 5,300 per month.

8. The Cabinet modified the 7th Pay Commission Recommendations and now the HPCA and CPA benefits to continue for ministerial staff.

9. Siachen allowances have been increased from Rs. 14,000 per month to Rs. 30,000 for soldiers and for officers the same will be Rs. 42,500 for extreme risk and hardship from Rs. 21,000 earlier.

10. Economists say that disbursement of 7th pay commission allowances is expected to give a further boost to consumer spending and thus the broader economy.

Source  : NDTV
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Tuesday, 13 June 2017

7th Pay Commission: Final decision on allowances tomorrow; govt employees may suffer monthly HRA loss of up to Rs 15,000

New Delhi: The central government employees are likely to get revised allowances from July onwards.

As per sources, the Cabinet will take final decision on E-CoS proposal on Wednesday (June 14). The Empowered Committee of Secretaries (E-CoS) set up to screen the Lavasa panel recommendations on allowances, last week submitted its proposal to the Cabinet for approval.


A high-level committee headed by the Finance Secretary, Ashok Lavasa had on April 27 submitted its report to Finance Minister Arun Jaitley.

The Empowered Committee of Secretaries has reportedly given its view in favour of AK Mathur-led 7th Pay Commission recommendation, regarding decrease in house rent allowance (HRA) by 2-6 percent depending on type of cities.

The 7th Pay Commission headed by AK Mathur had earlier proposed the rate of House Rent Allowance (HRA) at 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.
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The Commission had also recommended that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.

The existing rates of HRA for Class X, Y and Z cities and towns are 30 percent, 20 percent and 10 percent of Basic pay (pay in the pay band plus grade pay)


HRA as per existing or 6th CPC
HRA as per AK Mathur panel
city X (min-max)
 city Y (min-max)
city Z (min-max)
city X (min-max)
 city Y (min-max)
city Z (min-max)
Rs 5,400- Rs 75,000
Rs 3,600- Rs 50,000 
Rs 1,800- Rs 25,000
Rs 4,320-Rs 60,000
Rs 2,880-Rs 40,000
Rs 1,440-Rs 20,000



Option 1
If the government accepts the bare recommendations of A K Mathur-led 7th Pay Commission then the HRA component of central government employees will increase ranging between 106 percent and 122 percent.

Take, for instance, a central government employee at the very bottom of the pay scale under 6th Pay Commission was till now entitled to an HRA of Rs 2,100 on basic pay of Rs 7,000 (basic pay that includes pay of pay band + grade pay) in a Class X city. It is to be noted that government, while implementing the 7th Pay Commission in June last year had made it clear that till the final outcome of allowances committee is being placed, the employees would be getting the allowances as per 6th Pay Commission.

Now, as per 7th Pay Commission, the new entry level pay at this level is Rs 18,000 per month against which the new HRA for a Class X city would be Rs 4,320 per month, that is 106 percent more than the existing level.

Similarly, at the highest level of the pay scale, the Cabinet Secretary and officers of the same rank have a basic pay of Rs 90,000, which means they are entitled to current HRA of Rs 27,000 in Class X towns. After the revised pay scale, the new basic pay is Rs 2.5 lakh, for which the HRA would be Rs 60,000, meaning a hike of 122 percent.

Option 2
If the government retains the exiting HRA rates (as per 6th Pay Commission) then the HRA component of central government employees will increase ranging between 157 percent and 178 percent.

Take, for instance, a central government employee at the very bottom of the pay scale under 6th Pay Commission was till now entitled to an HRA of Rs 2,100 on basic pay of Rs 7,000 (basic pay that includes pay of pay band + grade pay) in a Class X city. It is to be noted that government, while implementing the 7th Pay Commission in June last year had made it clear that till the final outcome of allowances committee is being placed, the employees would be getting the allowances as per 6th Pay Commission.

Now, as per 7th Pay Commission, the new entry level pay at this level is Rs 18,000 per month against which the new HRA for a Class X city would be Rs 5,400 per month, that is around 157 percent more than the existing level.

Similarly, at the highest level of the pay scale, the Cabinet Secretary and officers of the same rank have a basic pay of Rs 90,000, which means they are entitled to current HRA of Rs 27,000 in Class X towns. After the revised pay scale, the new basic pay is Rs 2.5 lakh, for which the HRA would be Rs 75,000, meaning a hike of around 178 percent.

Source : ZeeNews
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Wednesday, 7 June 2017

7th Pay Commission: Cabinet postpones meet, here is what happens next on allowances and HRA

The Union Cabinet has fixed a new date to take up the issue relating to higher allowances and HRA as per the 7th Pay Commission. Sources told OneIndia that the matter was not taken up on Wednesday by the Cabinet. Now the agenda will be set following which the matter will be taken up for final consideration. A Union leader who did not wished to be named said that the matter will be taken up soon by the Cabinet.

A Union leader who did not wished to be named said that the matter will be taken up soon by the Cabinet.

Employees will have to wait A crucial Union Cabinet meeting was expected to be held on Wednesday. Now that the matter was not taken up, the Cabinet will discuss the issue soon after setting an agenda, the leader also informed.

E-CoS report with Cabinet 

The report with by Empowered Committee of Secretaries is with the Cabinet. Senior officers including Finance Minister Arun Jaitley is going through the report. He would discuss the matter directly with the Prime Minister Narendra Modi and then place it before the Cabinet for a final decision on higher allowances and HRA.

Proposal for consideration by Cabinet An increase in House Rent Allowance (HRA) and basic pay was among the major concerns raised at the meeting of Empowered Committee of Secretaries for Central government employees. Although some reports indicated that the a cap of 25 per cent and 27 per cent was put on HRA, the Cabinet is likely to reverse that as per the employees' demands.

What is demanded The Central government employees have demanded that the HRA must be left unchanged at 30 per cent, 20 per cent and 10 per cent depending on the city where they live. The 7th Pay Commission had recommended that the HRA must be reduced to 24 per cent, 16 per cent and 8 per cent of the basic pay.

Hike in allowances to be cleared Good news is there for central government employees sources say. The proposal to hike their allowances as per the recommendations of the 7th Pay Commission will be considered by the Cabinet.

The 178 per cent HRA hike 
The Cabinet will first discuss the hike employees have been asking in the range of 157 to 178 per cent is the HRA rates as per the 6th Pay Commission. The existing rates of HRA for Class X, Y and Z cities and towns are 30 percent, 20 percent and 10 percent of Basic pay (pay in the pay band plus grade pay). If the Cabinet retains the existing HRA then the component for central government employees will increase in a range of 157 to 178 per cent

Possibilities 
A central government employee at the very bottom of the pay scale under 6th Pay Commission was till now entitled to an HRA of Rs 2,100 on basic pay of Rs 7,000 (basic pay that includes pay of pay band + grade pay) in a Class X city. It is to be noted that government, while implementing the 7th Pay Commission in June last year had made it clear that till the final outcome of allowances committee is being placed, the employees would be getting the allowances as per 6th Pay Commission.

New entry level As per 7th Pay Commission, the new entry level pay at this level is Rs 18,000 per month against which the new HRA for a Class X city would be Rs 5,400 per month, that is around 157 percent more than the existing level. At the highest level of the pay scale, the Cabinet Secretary and officers of the same rank have a basic pay of Rs 90,000, which means they are entitled to current HRA of Rs 27,000 in Class X towns. After the revised pay scale, the new basic pay is Rs 2.5 lakh, for which the HRA would be Rs 75,000, meaning a hike of around 178 percent. 



Source : OneIndia News
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