Cabinet approves the Recommendations of 7th CPC on Allowances with 34 modifications
Revised Rates will be effective from 01.07.2017
It will benefit 34 Iakh Civilian employees and 14 Iakh Defence Forces personnel
7th CPC examined 197 allowances, recommending abolition of 53 allowances and subsuming 37 in others
7th CPC recommended revised rates commensurate with Dearness Allowance
Risk & Hardship Matrix evolved for allowances linked to risk and hardship
7th CPC projected additional financial implication at Rs. 29,300 cr per annum, modifications to have additional implication of Rs.1448.23 cr
Combined additional financial implication estimated at Rs.30748.23 cr per annum.
HRA will be paid at 24%, 16% & 8% for X, Y & Z cities respectively.
HRA not to be less than Rs. 5400, 3600 & 1800 for X, Y & Z Cities, calculated at 30, 20 & 10% of Minimum Pay of Rs. 18000.
This will benefit to more than 7.5 lakh employees
7th CPC recommended revision of HRA when DA reaches 50% and 100%, Govt. decided to revise rates when DA crossed 25% and 50% respectively.