Press Information Bureau

Government of India

Ministry of Finance

07-July-2017 12:19 IST

Resolution conveying the Central Government’s decision on recommendations of the 7th Central Pay Commission (CPC) on Allowances has been published in Gazette of India yesterday i.e.6^th July, 2017. 

Based on the Report of Committee on Allowances (CoA) and the recommendation of E-CoS, the Cabinet had earlier approved the modifications in 34 Allowances in its Meeting held on 28th June 2017.  

All allowances are given effect from 1st July 2017.  

Concerned Ministries have now been advised to issue their Orders on Allowances governed by them immediately so that the revised rates of allowances get reflected in the current month's Salary Bills of the Government employees. 

Major Highlights of the Allowances approved by the Union Cabinet are as follows: 

Cabinet approved recommendations of 7^th CPC on allowances with 34 modifications - revised rates effective from 01.07.2017

It will benefit 34 lakh Civilian employees and 14 lakh Defence Forces personnel

7^th CPC examined 197 allowances, recommending abolition of 53 allowances and subsuming 37 in others.

7^th CPC recommended revised rates commensurate with Dearness Allowance

Fully DA-indexed allowances - no raise, not DA indexed raised by 2.25, partially indexed raised by 1.5, % based rationalised by 0.8

Risk & Hardship Matrix evolved for allowances linked to risk and hardship

7^th CPC projected additional financial implication at ₹ 29,300 cr per annum, modifications to have additional implication of ₹ 1448.23 cr

Combined additional financial implication estimated at ₹ 30748.23 crore per annum. 

1. Number of allowances recommended to be abolished and subsumed: 

·  Government decided not to abolish 12 allowances in view of specific functional requirements

·  3 of 37 subsumed allowances will continue as separate identities due to unique nature of these allowances.

2. House Rent Allowance (HRA)

· HRA will be paid @24%, 16% & 8% for X, Y & Z cities respectively

· HRA not to be less than ₹ 5400, 3600 & 1800 for X,Y&Z cities, calculated @30,20,&10% of min pay of ₹ 18000 - to benefit >7.5 lakh employee

· 7^th CPC recommended revision of HRA when DA reaches 50% & 100%, Govt decided to revise rates when DA crosses 25% and 50% respectively.

3. Siachen Allowance:

Rates of Siachen Allowance increased from ₹ 14000 pm (Soldiers) to ₹ 30000 & ₹ 21000 pm (Officers) to ₹ 42500 for extreme risk & hardship.

4. Dress Allowance:

· Government decided to pay Dress Allowance to Nurses on monthly basis due to high maintenance and hygiene requirements.

· Higher rate of Dress Allowance for Special Protection Group accepted by Govt.

5. Tough Location Allowance:

· 7^th CPC recommended-TLA not to be granted with SDA-Govt decided to give option of SCLRA at pre-revised rates with SDA at revised rates

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

· Children Education Allowance increased from ₹ 1500 pm/child (max.2) to ₹ 2250/child and Hostel Subsidy increased from ₹ 4500 pm to ₹ 6750 pm.

· Special Allowance for Child Care for Women with Disabilities doubled from ₹ 1500 pm to ₹ 3000 pm

· Higher Qualification Incentive for Civilians increased from ₹ 2000 - ₹ 10000 (Grant) to ₹ 10000 – ₹ 30000 (Grant)

7. Recommendations in respect of some important allowances paid to Uniformed Services: Defence, CAPFs, Police, Indian Coast Guard and Security Agencies

· Abolition of Ration Money Allowance and free ration to Defence officers in peace areas not accepted, RMA to be credited in bank account

· Technical Allowance (Tier-II) not to be merged, Govt. decided to continue Technical Allowance (Tier-II) @Rs.4500 pm-courses to be reviewed

· Aeronautical Allowance increased ₹ 300 pm to ₹ 450 pm and extended to Indian Coast Guard also

· Counter Insurgency Ops (CI Ops) Allowance for counter – insurgency ops increased from ₹ 3000 - ₹ 11700 pm to ₹ 6000 – ₹ 16900 pm

· MARCOS and Chariot Allowance paid to marine commandos increased from ₹ 10500 - ₹ 15750 pm to ₹ 17300 – ₹ 25000 pm

· Conditionality of 12 hrs reduced to 4 hrs for Sea Going Allowance and rates increased from ₹ 3000 - ₹ 7800 pm to ₹ 6000 – ₹ 10500 pm

· COBRA Allowance granted to CRPF personnel in Naxal hit areas increased from ₹ 8400 - ₹ 16800 pm to ₹ 17300 – ₹ 25000 pm

· Modified Field, Field & Highly Active Field Area Allowances increased from ₹ 1200 - ₹ 12600 pm to ₹ 6000 – ₹ 16900 pm.

· Flying Allowance increased from ₹ 10500 - ₹ 15750 pm to ₹ 17300 – ₹ 25000 pm and extended to BSF Air Wing also

· High Altitude Allowance increased from ₹ 810 - ₹ 16800 pm to ₹ 2700 – ₹ 25000 pm

· Higher Qualification Incentive for Defence Personnel increased from ₹ 9000 – ₹ 30000 (Grant) to ₹ 10000 – ₹ 30000 (Grant).

· Test Pilot and Flight Test Engineer Allowance increased from ₹ 1500 / 3000 pm to ₹ 4100 / 5300 pm

· Additional Free Railway Warrant (Leave Travel Concession) extended to CAPFs.

· Territorial Army Allowance increased from ₹ 175 - ₹ 450 pm to ₹ 1000 –Rs. 2000 pm

· Ceilings of Deputation (Duty) Allowance for Defence Personnel increased from ₹ 2000 - ₹ 4500 pm to ₹ 4500 - ₹ 9000 pm

· Detachment Allowance increased ₹ 165 - ₹ 780 per day to ₹ 405 – ₹ 1170 per day

· Para Jump Instructor Allowance increased from ₹ 2700/3600 pm to ₹ 6000/10500 pm

· Govt. increased Special Security Allowance for Special Protection Group to 55% and 27.5% of BP for ops and non – ops duties

· Housing provisions for PBORs and their families residing at other stations significantly improved and linked to HRA, process simplified

 8. Allowances paid to Indian Railways

 · Additional Allowance increased from ₹ 500 / 1000 pm to ₹ 1125 / 2250 pm and extended to Loco Pilot Goods and Senior Passenger Guards @Rs.750 pm

· Special Train Controller’s Allowance @5000 pm introduced for Train Controllers of Railways

 9. Allowances paid to Nurses & Ministerial Staffs of Hospital

· Governmentt increased rate of Nursing Allowance from ₹ 4800 pm to ₹ 7200 pm

· Operation Theatre Allowance not abolished and rates increased from ₹ 360 pm to ₹ 540 pm

· Hospital Patient Care Allowance/Patient Care Allowance increased from ₹ 2070 - ₹ 2100 pm to ₹ 4100 – ₹ 5300 pm

· 7th CPC recommendations modified and HPCA / PCA to continue for Ministerial staff

10. Allowances to Pensioners

· Fixed Medical Allowance for Pensioners increased from ₹ 500 pm to ₹ 1000 pm

· Constant Attendance Allowance on 100% disablement increased from ₹ 4500 pm to ₹ 6750 pm

11. Allowances to Scientific Departments

· 7th CPC recommendations to abolish Launch Campaign Allowance and Space Technology Allowance not accepted – rates revised from ₹ 7500 pa to ₹ 11250 pa

· Professional Update Allowance for non-gazetted staff of DAE will continue at enhanced rate of ₹ 11250 pa

· Antarctica Allowance – Summer rates revised from ₹ 1125 per day to ₹ 1500 per day, Winter rates from ₹ 1688 per day to ₹ 2000 per day

12. Allowance paid to D/o Posts & Railways

· Cycle Allowance not abolished - rates doubled from ₹ 90 to ₹ 180 pm for functional requirements of Postmen in Posts and Trackmen in Railways.

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DSM/KA

Allowance revision under pay commission: immediate implementation and DA linked indexation with risk and hardship recalibration. Central government adopted and published modifications to pay-commission allowance recommendations, effective 1 July 2017, directing ministries to issue immediate orders so revised rates are reflected in current salary bills. The changes include retention, abolition and subsumption decisions, DA-linked indexation adjustments, a Risk & Hardship Matrix for operational allowances, tiered house rent allowance rules with revised revision triggers, and targeted upratings and continuations across civilian, defence, uniformed services, nursing, scientific and pensioner allowances.