FIN MIN PRESS NOTE- CABINET APPROVAL ON ALLOWANCES UNDER RECOMMENDATIONS OF 7TH CPC

Fin Min Press Note- Cabinet Approval on Allowances under Recommendations of 7th CPC PRESS NOTE The Union Cabinet chaired by the ...

Fin Min Press Note- Cabinet Approval on Allowances under Recommendations of 7th CPC


PRESS NOTE

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved the recommendations of the 7th CPC on allowances with some modifications. The revised rates of the allowances shall come into effect from 1st July, 2017 and shall affect more than 48 lakh central government employees.

While approving the recommendations of the 7th CPC on 29th June, 2016, the Cabinet had decided to set up the Committee on Allowances (CoA) in view of substantial changes in the existing provisions and a number of representations received. The modifications are based on suggestions made by the CoA in its Report submitted to Finance Minister on 27th April, 2017 and the Empowered Committee of Secretaries set up to screen the recommendations of 7th CPC.

7th CPC recommendations on Allowances

The 7th CPC had adopted a three-pronged approach in examining a total of 197 allowances which involved an assessment of the need for continuation of each allowance, appropriateness of the set of people covered by the allowance and rationalisation which involved clubbing of allowances with similar objectives. Based on the examination on these lines, the 7th CPC recommended that 53 allowances be abolished and 37 be subsumed in an existing or a newly proposed allowance.

For most of the allowances that were retained, the 7th CPC recommended a raise commensurate with inflation as reflected in the rates of Dearness Allowance (DA). Accordingly, fully DA-indexed allowances such as Transport Allowance were not given any raise. Allowances not indexed to DA were raised by a factor of 2.25 and the partially indexed ones by a factor of 1.5. The quantum of allowances paid as a percentage of pay was rationalised by a factor of 0.8.

A new paradigm has been evolved to administer the allowances linked to risk and hardship. The myriad allowances, their categories and sub–categories pertaining to civilians employees, CAPF and defence personnel have been fitted into a table called the Risk and Hardship Matrix (R&H Matrix). The Matrix has nine cells denoting varying degrees of risk and hardship with one extra cell at the top named as RH - Max to include Siachen Allowance. Multiple rates applicable to individual allowances will be replaced by two slab rates for every cell of the R&H Matrix.

Modifications approved by the Cabinet

The modifications approved today were finalised by the E-CoS based on the recommendations of the CoA. The CoA had undertaken extensive stakeholder consultations before finalising its recommendations. It had interacted with Joint Consultative Machinery (Staff side) and representatives from various staff associations. Most of the modifications are on account of continuing requirement of some of the existing arrangements, administrative exigencies and to further the rationalization of the allowances structure.

Financial Implications

The modifications approved by the Government in the recommendations of the 7th CPC on allowances will lead to a modest increase of ₹1448.23 crore per annum over the projections made by the 7th CPC. The 7th CPC, in its Report, had projected the additional financial implication on allowances at ₹29,300 crore per annum. The combined additional financial implication on account of the 7th CPC recommendations along with the modifications approved by the Cabinet is estimated at ₹30748.23 crore per annum.

Highlights of Cabinet approval on Allowances






6. Recommendations in respect of some important allowances paid to all employees:




9. Recommendations in respect of some important allowances paid to Nurses & Ministerial Staffs of Hospital





Conclusion

While increasing the rate of allowances affecting the central government employees, especially the Defence, CAPF and Coast Guard personnel, the staff of Railways, Postal department and nursing staff, the total number of allowances have been rationalized from 197 to 128. Thus, the Government has shown a great deal of fiscal prudence and at the same time addressed the genuine concerns of the employees and responded to some of the administrative exigencies necessitating the modifications.

Download Approval on Allowances under 7th CPC- Fin Min Press Note

COMMENTS

Name

29TH SCOVA MEETING,3,30TH SCOVA MEETING,2,3RD PRC,1,5TH PAY COMMISSION,7,6TH PAY COMMISSION,17,7TH CPC,48,7TH CPC ALLOWANCES,142,7TH CPC ARREARS,13,7TH CPC HIGHLIGHTS,1,7TH CPC MEETING,9,7TH CPC MEMORANDUM,2,7TH CPC NEWS,96,7TH CPC NOTIFICATION,128,7TH CPC PENSION CALCULATOR,2,7TH PAY COMMISSION,1237,AADHAAR,27,AADHAAR NUMBER,15,AADHAR CARD,6,AAM AADMI BIMA YOJANA,1,ABOLISH INTERVIEW,6,ABOLISH POSTS,3,ACCIDENTAL DEATH,1,ACCOMMODATION,14,ACCOUNTS CADRE,5,ACCOUNTS OFFICER,6,ACCOUNTS STOCK VERIFIERS,2,ACP,7,ACR,5,AD-HOC APPOINTMENT,1,AD-HOC BONUS,15,ADDITIONAL ALLOWANCE,2,ADDITIONAL HRA,2,ADDITIONAL PAY,1,ADDITIONAL PENSION,8,ADVANCE AGAINST PLB,1,ADVANCE SALARY,2,ADVANCES,11,AFFDF,1,AGE LIMIT,4,AGE RELAXATION,1,AGENCY COMMISSION,1,AIBEA,7,AIBOA,2,AIBOC,3,AICPIN,34,AIDEF,2,AIR FORCE STAFF,11,AIR TICKET,18,AIR TRAVEL,39,AIRF,65,AIS,17,AIS (DCRB) RULES,5,ALLOWANCE COMMITTEE REPORT,2,ALLOWANCES,322,ANNUAL ALLOWANCE,2,ANNUAL REPORT ON PAY & ALLOWANCES,3,ANOMALIES,64,ANOMALY COMMITTEE,45,ANUBHAV,9,APAR,28,APPOINTMENT,6,APPRENTICES,4,APY,6,ARM,1,ARMED FORCES,72,ARMED FORCES PENSIONERS,52,ARMY ORDNANCE CORPS,1,ARMY ORDNANCE CORPS (AOC),3,ARMY STAFF,20,ARREARS,22,ARTISAN STAFF,3,ASO,6,ASSAM RIFLES,1,ATAL PENSION YOJANA,8,ATS,1,AUDIT & ACCOUNT ASSOCIATION,2,AUDIT EMPLOYEES,4,AUTONOMOUS BODIES,33,AYUSH HOSPITALS,2,BACKLOG VACANCIES,1,BANK,29,BANK ACCOUNT,4,BANK BIPARTITE NEWS,23,BANK EMPLOYEES,59,BANK EMPLOYEES NEWS,31,BANK EMPLOYEES WAGE REVISION,30,BANK HOLIDAYS,3,BANK PENSIONERS,5,BANKING FACILITY,1,BASIC SALARY,4,BCA,1,BDPA,1,BEFI,1,BHAVISHYA,6,BIOMETRIC ATTENDANCE,10,BIS,1,BLACK DAY,1,BONUS,70,BONUS ARREAR,1,BONUS CEILING,13,BONUS ORDER 2016,2,BONUS ORDER 2017,13,BPEF,1,BPMS,44,BPS,18,BREAKDOWN ALLOWANCE,1,BSF,1,BSF EMPLOYEES,3,BSNL,12,BSNL EMPLOYEES,6,BSNL PENSIONERS,6,BUDGET,23,BUDGET 2016- 2017,10,BUDGET 2017- 2018,4,BUDGET 2018- 2019,6,CAA,7,CADRE,1,CADRE FIXATION,1,CADRE RESTRUCTURING,30,CADRE REVIEW,24,CANTEEN FACILITIES,12,CAPF,11,CASH HANDLING 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LEAVE,1,COMMUTED PENSION,6,COMPASSIONATE APPOINTMENT,10,COMPENSATION,4,COMPPASSIONATE APPOINTMENT,16,COMPULSORY RETIREMENT,5,COMPUTER ADVANCE,1,CONCORDANCE TABLES,21,CONDIMENT ALLOWANCE,1,CONFEDERATION,122,CONFERENCE,3,CONTRACT LABOUR,17,CONTRACT WORKERS,7,CONVEYANCE ALLOWANCE,2,COURT CASES,7,COURT ORDER,16,CPAO,68,CPENGRAMS,1,CPF PENSIONERS,6,CPI,23,CPI INDEX,16,CPI- IW,15,CPMF,3,CPSE,35,CPSE EMPLOYEES,31,CS (MA) RULES 1944,5,CSCS,10,CSD,14,CSD CANTEEN FACILITIES,8,CSS,45,CSSS,21,CTG,5,CVO,3,CYCLE MAINTENANCE ALLOWANCE,3,DA,96,DA JANUARY 2016,5,DA JANUARY 2017,5,DA JANUARY 2018,13,DA JULY 2015,1,DA JULY 2016,10,DA JULY 2017,6,DA MERGER,59,DAD PERSONNEL,1,DAILY ALLOWANCE,6,DATA ENTRY OPERATOR,2,DATA PROCESSING ASSISTANTS,1,DATE OF NEXT INCREMENT,4,DE-EMPANELMENT,1,DEARNESS ALLOWANCE,80,DEARNESS RELIEF,31,DEATH BENEFITS,11,DEATH-CUM-RETIREMENT,6,DECEASED EMPLOYEES,4,DECLARATION OF ASSETS & LIABILITIES,5,DEDUCTION,8,DEFENCE,314,DEFENCE CIVILIAN EMPLOYEES,30,DEFENCE CIVILIANS,14,DEFENCE EMPLOYEES,177,DEFENCE INDUSTRIAL ESTABLISHMENTS,5,DEFENCE PENSION,9,DEFENCE PENSIONERS,102,DELEGATION OF POWERS,3,DEPARTMENT CANTEEN,1,DEPARTMENTAL INQUIRIES,4,DEPARTMENTAL PROMOTION COMMITTEES,2,DEPENDENTS,1,DEPENDENTS OF DECEASED,5,DEPUTATION,10,DEPUTATION ALLOWANCE,5,DEPUTATION OF EMPLOYEES,5,DEPUTATION ON TENURE ALLOWANCE,1,DEPUTY SECRETARY,5,DESW,40,DHARNA,14,DIABETES,1,DIEM/HALTING ALLOWANCE,1,DIGITAL SIGNED PENSION,4,DIGITALIZATION,2,DIRECTORATE OF ESTATES,1,DISABILITY,36,DISABILITY PENSION,40,DISABLE EMPLOYEE,11,DISABLED CHILDREN,8,DISBURSEMENT OF PENSION,8,DISCIPLINARY PROCEEDINGS,4,DIVORCED DAUGHTER,5,DOCTORS,3,DOMESTIC WORKERS,2,DOP&PW,25,DOPT,324,DOPT 2015,1,DOPT 2016,51,DOPT 2017,97,DOPT 2018,28,DOT,1,DR,37,DRAFTSMAN,4,DRESS ALLOWANCE,10,DSC,2,DUTY HOURS,1,e-NPS,2,E-OFFICE,1,E-PAYMENT,1,E-PENSION,1,E-REVISION,6,ECHS,17,ECHS HOSPITALS,3,ECHS SUBSCRIPTION,2,EDP CADRE,2,ELECTION,6,ELECTION HOLIDAY,1,EMPANELLMENT,11,ENGINEERS,9,EPF,16,EPFO,28,EPS,6,ESIC,8,EX-GRATIA,8,EX-GRATIA COMPENSATION,3,EX-SERVICEMEN,246,EXECUTIVE ASSISTANT,1,EXIT & WITHDRAWAL,4,EXPECTED DA,43,EXPECTED DA BANK EMPLOYEES,2,EXPECTED DA JAN 2017,6,EXPECTED DA JAN 2018,6,EXPECTED DA JULY 2016,1,EXPECTED DA JULY 2017,5,EXPECTED DA JULY 2018,3,EXPECTED DA/DR,7,EXPECTED FAMILY PENSION,3,EXPECTED PENSION,1,EXPENDITURE ALLOCATION,3,EXTENSION,4,EXTENSION EMPANELMENT,1,EXTRA WORK ALLOWANCE,2,FACILITIES TO MP,1,FAMILY PENSION,71,FAMILY PENSIONER,154,FAMILY PLANNING ALLOWANCE,4,FAQ,6,FESTIVAL ADVANCE,3,FIN MIN ORDER,98,FINANCE BUDGET,8,FINANCE COMMISSION,2,FIRE ENGINEE DRIVER,1,FIRE STAFF,1,FISCAL DEFICIT,9,FITMENT FACTOR,53,FIVE DAY WEEK,3,FIXED MONETARY COMPENSATION,1,FLEXI FARE,1,FMA,16,FNPO,1,FOREIGN VISIT,4,FORM 15G & 15H,1,FORM 25,1,FORMS,6,FR 15(A),1,FREEDOM FIGHTER PENSION,5,FULL PENSION,6,FUNDAMENTAL RULES,1,GALLANTRY AWARDS,6,GAZETTE,1,GAZETTE NOTIFICATION,6,GDCE,1,GDS,36,GDS COMMITTEE,9,GDS COMMITTEE REPORT,14,GENERAL POOL,4,GFR,5,GOVERNMENT HOLIDAYS CALENDAR,9,GOVT TOUR,15,GPF,23,GPF (CS) RULES 1960,2,GPF GRIEVANCE,1,GPF WITHDRAWALS,2,GPRA,6,GRADE I,2,GRADE PAY,26,GRADE PAY MERGER,15,GRADE PAY UPGRADATION,8,GRAMIN DAK SEWAKS,38,GRATUITY,17,GRIEVANCES,7,GROUP A,22,GROUP B,12,GROUP C,24,GROUP D,20,GROUP INSURANCE,12,GST,2,GUARANTEE WORK,1,HARD AREA ALLOWANCE,2,HARDSHIP DUTY ALLOWANCE,2,HBA,4,HEALTH & MALARIA ALLOWANCE,1,HEALTH CHECK UP,2,HEALTH INSURANCE SCHEME,1,HEALTH SCHEME,4,HELPER,1,HIERARCHY,10,HIGH ALTITUDE ALLOWANCE,1,HIGH COURT,5,HIGHER QUALIFICATION INCENTIVE,1,HIRING APPRENTICES,1,HIRING STAFF CARS,1,HOLIDAY OVERTIME,1,HOLIDAYS,22,HOLIDAYS 2016,1,HOLIDAYS 2017,3,HOLIDAYS 2018,4,HOLIDAYS FOR YEAR 2016,3,HOME LOAN,1,HONORARIUM,3,HOSTEL ALLOWANCE,7,HOUSE,6,HOUSE ADVANCE,4,HOUSE RENT ALLOWANCE,19,HOUSING LOAN INTEREST,1,HPCA,7,HRA,117,IAF PENSIONERS,1,IAS OFFICERS,9,IBA,13,IBM,1,IDA,4,IDENTITY CARD,5,IESM,2,IFS,1,IMMOVABLE PROPERTY RETURNS,3,IMPLEMENTATION CELL,8,INCENTIVES,4,INCOME TAX,24,INCOME TAX COMPLIANCES,1,INCOME TAX RETURN,4,INCOME TAX RETURNS,1,INCREMENT,20,INDUSTRIAL CIVILIAN EMPLOYEES,1,INDUSTRIAL TRADES,2,INDUSTRIAL WORKERS,6,INDWF,6,INFLATION,4,INJURY LEAVE,1,INQUIRY,2,INTER CADRE DEPUTATION,7,INTER CADRE TRANSFER,7,INTEREST RATES,17,INTERIM RELIEF,47,INTERIM REPORT,15,IPR,3,IPS OFFICERS,2,IRCTC,4,IRSA,1,IRTSA,14,ISLAND SPECIAL DUTY ALLOWANCE,2,IT EXEMPTION LIMIT,13,J & K GOVT EMPLOYEES,5,JCA,2,JCM,13,JEEVAN PRAMAAN,11,JSA,1,KENDRIYA VIDYALAYA SANGATHAN,9,KISAN VIKAS PATRA,1,KVS,13,KVS ADMISSION,2,KVS EMPLOYEES,11,KVS ORDERS,27,LAB TECHNICIAN,3,LABOUR CONFERENCE,5,LABOUR LAWS,8,LARSGESS,3,LAW OFFICERS,1,LDC,4,LDC & UDC,11,LDCE,1,LDCE/GDCE,1,LEAVE,23,LEAVE ENCASHMENT,8,LEAVE RULES,3,LEAVE SALARY,3,LIC,1,LIEUTENANT,1,LIFE CERTIFICATE,26,LIFTING BAN,1,LINK PAY WITH PRODUCTIVITY,2,LOCO & TRAFFIC RUNNING STAFF,1,LOCO INSPECTOR,2,LOCO PILOTS,4,LOK SABHA QUESTIONS,81,LOKPAL & LOKAYUKTAS ACT 2013,3,LTC,55,LTC FARES,3,LTC PROCEDURE,4,MACP,89,MARTYRED SOLDIERS,8,MATERNITY BENEFITS,9,MATERNITY LEAVE,13,MEDICAL,11,MEDICAL ALLOWANCE,3,MEDICAL ASSISTANT,2,MEDICAL INSTITUTES,1,MEDICAL OFFICERS,10,MEDICAL REIMBURSEMENT,5,MEDICAL TREATMENT,2,MEDICLAIM,3,MEMORANDUM,3,MEMORANDUM TO 7TH PAY COMMISSION,15,MERGER OF POSTS,4,MES,1,MIDDLE- CLASS PEOPLE,1,MILEAGE ALLOWANCE,1,MILITARY FARMS,1,MINIMUM ENTRY PAY,4,MINIMUM PENSION,34,MINIMUM WAGE,123,MINISTERIAL STAFF,5,MLA,1,MNS,1,MOH&FW,11,MONOTERING,1,MP,5,MSP,10,MTNL,2,NAC,57,NATIONAL COMMISSION,1,NATIONAL HOLIDAY ALLOWANCE,3,NATIONAL PENSION SYSTEM,32,NAVY EMPLOYEES,11,NAVY INDUSTRIAL EMPLOYEE,1,NAVY STAFF,8,NCJCMSTAFF,92,NEGP,1,NEW PENSION SCHEME,47,NEW RECRUITERS,3,NEWS,1,NEWSPAPER REIMBURSEMENT,1,NFIR,139,NFPE,9,NFSG,2,NIGHT DUTY ALLOWANCE,14,NITI AAYOG,1,NJCA,12,NODAL OFFICERS,2,NON-MONETARY BENEFITS,1,NON-PRODUCTIVITY LINKED BONUS,4,NOTIFICATION,35,NPA,7,NPS,120,NRMU,3,NURSING ALLOWANCE,3,NURSING PERSONNEL,6,OBC,6,OFB,14,OFFICERS,4,OFFICIAL DUTY,1,OLD PENSION SCHEME,8,ONE RANK ONE PENSION,6,ORDNANCE FACTORY,19,OROP,191,OROP TABLE,4,OVERTIME ALLOWANCE,13,PAID 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PRIVATIZATION,1,STORE KEEPING STAFF,2,STORE PHARMACIST,2,STRIKE,65,SUKANYA SAMRIDDHI ACCOUNT,5,SUMPTUARY ALLOWANCE,3,SUPERANNUATION,12,SUPERVISOR,12,SUPREME COURT,6,SUSPENSION,4,SUSPENSION HOSPITALS,3,SWEEPERS,1,SWITCHING OVER 6TH PAY COMMISSION,1,TA CLAIMS,2,TA RULES,11,TAX BENEFITS,4,TAX RATES,2,TAX RELIEF,4,TDS,1,TEACHERS,4,TEACHERS NEWS,2,TEACHING STAFF,3,TECHNICAL RESIGNATION,1,TECHNICIAN,2,TELEPHONE FACILITIES,1,TENURE ALLOWANCE,3,TERMS OF REFERENCE OF 7TH PAY COMMISSION,5,TERRITORIAL ARMY ALLOWANCE,1,THIRD PAY REVISION COMMITTEE,6,TOUGH LOCATION ALLOWANCE,4,TRACK MAINTAINERS,3,TRACKMEN,2,TRAINEES,2,TRAINING,9,TRAINING ALLOWANCE,3,TRAINS,2,TRANSFER,20,TRANSFER POLICY,18,TRANSPORT ALLOWANCE,26,TRAVELLING,5,TRAVELLING ALLOWANCE,31,TRIP ALLOWANCE,1,UDC,3,UFBU,3,UGC,3,UNIFORM,1,UNIFORM ALLOWANCE,6,UNMARRIED GOVERNMENT EMPLOYEES,1,UPSC,1,URC,4,VACANCY,8,VACATION,1,VIGILANCE CLEARANCE,1,VOLUNTARY RETIERMENT SCHEME,6,VPBY,1,VRS,3,VRS SCHEME,2,WAGE HIKE,23,WAR INJURY PENSION,7,WASHING ALLOWANCE,5,WELFARE FACILITIES,9,WITHDRAWAL HOSPITALS,1,WOMEN EMPLOYEES,14,WORKING DAYS,1,WORKING HOURS,4,WORKSHOP,2,X BP SETTLEMENT,4,XI BP SETTLEMENT,15,YOGA,1,सातवाँ वेतन आयोग,6,
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CENTRAL GOVT EMPLOYEES & PENSIONERS NEWS: FIN MIN PRESS NOTE- CABINET APPROVAL ON ALLOWANCES UNDER RECOMMENDATIONS OF 7TH CPC
FIN MIN PRESS NOTE- CABINET APPROVAL ON ALLOWANCES UNDER RECOMMENDATIONS OF 7TH CPC
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CENTRAL GOVT EMPLOYEES & PENSIONERS NEWS
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