Sep 11, 2017

7th Pay Commission | Other than Minimum Salary Hike, Here are Other Allowances



Approving the recommendations of the 7th Pay Commission by the Union Cabinet has come as a good news for government employees. The seventh Pay Commission will usher benefits for serving employees, defence personnel, as well as pensioners

According to reports, the 7th Pay Commission will bring in bigger bonanza for government servents. It has been reported that the minimum pay of central government employees may increase to 21, 000 from Rs 18,000.
After 7th Pay Commission soldiers in Siachen will get Increased pay 

According to sources, for defence personnel facing extreme risk and hardship in Siachen, the Siachen allowance has been increased under 7th Pay commission that has made it more than doubled. Now, the defence personnel in Siachen will get an increased allowance post the 7th Pay Commission. The soldiers will get Rs 30,000 and the officers will get Rs 42,500 post seventh Pay Commission, this allowance has been increased from Rs from Rs 14,000 per month and Rs 21, 000 per month respectively under 7th Pay commission.

Increase in HRA and DA under 7th Pay Commission

The approved House Rent Allowance (HRA) under the 7th Pay Commission will now be 24 %, 16 % and 8 % of the new basic pay. The rate of HRA would also be revised when the dearness allowance (DA) crosses 25 per cent and 50 per cent. According to reports, the DA would be 27%, 18% and 9%, and further to 30% , 20% and 10% when it crosses 25 per cent and 50 per cent respectively.

Besides the percentage increase in dearness allowance under 7th Pay Commission, the government has also decided the minimum floor rate of House Rent Allowance for the lowest categories of employees which would depend on the type of city but would not be less than Rs 5,400, Rs 3,600 and Rs 1,800. This HRA would be calculated at 30%, 20% and 10% of minimum pay of Rs 18,000.

HRA constitutes 60% of the total allowance of a government employee’s pay and this revision in 7th Pay Commission HRA will benefit more than 7.5 lakh government employees.

List of allowances that have been retained

Besides increasing the allowance for Siachen soldiers and HRA and DA it was reported that 108 allowances have been retained by the government under 7th Pay Commission. This number is against the Pay Commission’s recommendation for 95 allowances.

Similarly, the centre has abolished only 43 allowances against the recommendation to do away with 53 of the allowances. Besides the 53 allowances, 34 allowances have been subsumed in 7th Pay Commission. It was reported that decisions with regard to railways’ allowances will be taken up later. There are 12 such railway allowances that will be taken up later.

Seventh Pay Commission also brings good news for pensioners

The medical allowance has been doubled for the pensioners from Rs 500 per month to Rs 1,000 per month. The Constant attendance allowance has also been increased under 7th Pay Commission. 100 per cent disablement has also been increased to Rs 6750 from Rs 4,500.

Financial burden on government 

Besides all the above-mentioned allowances, the government has also increased the nursing allowance. Allowance to ministerial staff of hospitals and nurses has been increased from Rs 4,800 per month to Rs 7,200 per month. The OT (operation theatre) allowance has also been hiked. The revised allowance under the 7th Pay Commission would be Rs 540 per month against Rs 360 per month. Hospital patient care allowance has also been increased.

All the revised allowances are likely to put a financial burden on the government. It was reported that the revised 7th Pay Commission will put an additional financial burden of Rs 30,748.23 crore annual on the government.

Source- Chandigarhmetro