7th CPC Number of Allowances Recommended be Abolishing and Subsuming: Cabinet Approval
1. Number of allowances recommended be abolishing and subsuming:
Government has decided not to abolish 12 of the 53 allowances which were recommended to be abolished by the 7th CPC.
The decision to retain these allowances has been taken keeping in view the specific functional requirements of Railways, Posts and Scientific Departments such as Space and Atomic Energy. It has also been decided that 3 of the 37 allowances recommended to be subsumed by the 7th CPC will continue as separate identities. This has been done on account of the unique nature of these allowances.
The rates of these allowances have also been enhanced as per the formula Page 3 of 10 adopted by the 7th CPC. This will benefit over one lakh employees belonging to specific categories in Railways, Posts, Defence and Scientific Departments.