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7th Pay Commission: Bonanza for government employees; Govt. clears HRA, allowances

After a long wait, more than 50 lakh government employees have lots to cheer, as the central government has approved the recommendations of the 7th Central Pay Commission on allowances. This comes 4 weeks after the Empowered Committee of Secretaries submitted its report to Finance Minister Arun Jaitley. The approval comes soon after Prime Minster Narendra Modi returned from his successful three country trip including United States and Netherlands. The cabinet has approved most of the recommendations on allowances with only 34 modifications. The new rates will be applicable from July 1, 2017.

The approval for 7th Pay Commission recommendations will benefit 34 lakh civilian employees and 14 lakh defense forces personnel. HRA rates have been revised at 24, 16 and 8 percent. Siachen allowance has been increased from Rs 14,000 to Rs 30,000 per month for soldiers and from Rs 21,000 to Rs 42,500 per month for officers.  Fixed medical allowance for pensioners increased from Rs 500 to Rs 1,000 per month. Constant attendance allowance for those with 100% disability has been increased from Rs 4,500 to Rs 6,750 per month. Rate of nursing allowance increased from Rs 4,800 to Rs 7,200 per month. Hospital patient care allowance/patient care allowance increased from Rs 2,070 to Rs 4,100 per month and Rs 2,100 to Rs 5,300 per month.


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