Benefits of the 7th Pay Commission will be extended to 48 lakh employees. All the benefits of the 7th Pay Commission will start pouring in the government employees’ accounts from July onward. Yes, the changes in the salaries of central govt employees after the implementation of 7th Central Pay Commission will reflect from July onward. It is also believed (As per the report) that this week govt will notify Cabinet decision on allowance hike as well.
Effective from July 1, 2017, the changes, in accordance with the 7th Pay Commission, will benefit 48 lakh employees including 14 lakh military employees and 34 lakh civilian employees. It is noteworthy that the revised allowances will be considered the GST roll out day ie July 1, 2017.
Reforms in allowance structure for central government employees was approved last month by the Union Cabinet on June 28, 2017. The new allowance structure will be put into effect after being notified in the Official Gazette.
Benefit in a glance
- Increased HRA Allowance as per the 7th Pay Commission
- Increased Pensioners’ allowances
- Increased Nursing allowances.
- Increased Siachen allowances for defence personnel as per the 7th Pay Commission
- The New Dress Allowance
- Increased Tough Location Allowance (TLA) as per the 7th Pay Commission
- Increase in allowances paid to Department of Posts
- Besides these, there are some other important allowances as well
HRA Allowance as per the 7th Pay Commission
In 7th Pay Commission the HRA will now be 8 per cent, 16 per cent and 24 per cent of the new basic pay. The rate of HRA would be revised when the dearness allowance (DA) crosses 25 per cent and 50 per cent. HRA will not be less than Rs 5400, Rs 3,600 and Rs 1800 depending on city to city.
The medical allowance for pensioners has been doubled under 7th Pay Commission. The allowance has been increased from Rs 500 per month to Rs 1,000 per month. Also CAA (Constant Attendance Allowance) has been increased from Rs 4500 per month to Rs 6750 per month.
Under the 7th pay commission, the nursing allowance has been increased from Rs 4,800 per month to Rs 7,200 per month. The Operation Theatre Allowance (OTA) too has been increased from Rs 360 per month to Rs 540 per month. Hospital Patient Care Allowance too has been increased.
Siachen allowances for defence personnel
Defence personnel in Siachen will now get more than double. This allowance for soldiers has been increased to Rs 30, 000 from Rs 14,000 per month and for officers it has been increased to Rs 42,500 from Rs 21,000.
The New Dress Allowance
A newly proposed Dress Allowance under 7th Pay Commission will be paid in four slabs annually. the slab for this allowance is — Rs 5000, Rs 10,000, Rs 15,000 and Rs 20,000 on the basis of the category of employees.
Tough Location Allowance (TLA)
Allowances based on geographical location has also been increased. Ranging between Rs 1, 000 per month to Rs 5, 300 per month the rates will be governed as per different cells of R&H Matrix.
Some important allowances
- Children Education Allowance (CEA)
- Subsidy on Hostel facility in 7th Pay Commission
- Allowance for Child Care (Special Allowance ) for Women with Disabilities.
- The Higher Qualification Incentive (for civilians)
Allowances paid to Department of Posts
The cycle allowance has been doubled from Rs 90 per month to Rs 180 per month under the 7th Pay Commission.
More on 7th Pay Commission