7th Pay Commission: 108 allowances retained, 43 scrapped – Full list of changes approved by Cabinet, including HRA

"We have decided to increase HRA when DA crosses over 25 per cent. The rationale behind this decision is that as the inflation rises and DA crosses 25 per cent mark, the employee should be benefited in terms of HRA as well," Finance Minister Arun Jaitley said.

Updated: June 28, 2017 8:46 PM IST

By Mohammed Uzair Shaikh

7th Pay Commission: 108 allowances retained, 43 scrapped - Full list of changes approved by Cabinet, including HRA
वित्त मंत्री अरुण जेटली. फाइल फोटो.

New Delhi, June 28: Finance Minister Arun Jaitley announced the approval of revised recommendations of 7th Pay Commission in relation to allowances for central government employees. The decision on 7CPC allowances was taken in the Union Cabinet meeting held on Wednesday. The allowance hike would come into effect from July 1, 2017, Jaitley confirmed.

“A total of 108 allowances have been retained. 34 have been subsumed and 43 have been done away with. The Pay Commission had earlier implemented the abolishment of 56 allowances,” Jaitley said. “Whatever decision in terms of Pay Commission was taken today, the interests of employees was kept in mind,” the Finance Minister added. ALSO READEven Group C workers should get HRA at 10, 20, 30 percent, says employee forum

The total cost of amendments in allowance structure on the exchequer is pegged at Rs 30,748.23 crore. “The realisation of the amount may be bit less this years since we have reached July,” Jaitley said.

Here is the list of changes approved by Cabinet:

– The House Rent Allowance (HRA) has been increased, as compared to that originally recommended by the Justice (retd) AK Mathur-led 7th Pay panel. The HRA would be increased to 10, 20 and 30 per cent, once the Dearness Allowance (DA) crosses over 25 per cent of the basic pay. If the DA remains below 25 per cent, the HRA for X, Y, Z category cities would be 8, 16 and 24 per cent.

– The Pay Commission had originally recommended an increase in the HRA to 10, 20 and 30 per cents only when DA crosses 50 per cent. “But we have decided to increase HRA when DA crosses over 25 per cent. The rationale behind this decision is that as the inflation rises and DA crosses 25 per cent mark, the employee should be benefited in terms of HRA as well,” Jaitley said.

– The minimum base level of HRA will not be less than Rs 5,400, 3,600 and 1,800, calculated at the basic pay of Rs 18,000 minimum salary.

– Cabinet also approved the hike in medical allowance for pensioners, increasing it from Rs 500 to Rs 1,000. “We decided to double the medical pension to benefit the pensioners,” Jaitley said. The Constant Attendance Allowance, for 100 percent disability, has been increased from Rs 4,500 to Rs 6,750 per month.


– For medical practitioners, a slew of changes have been approved. Nursing allowance has been increased from Rs 4,800 per month to Rs 7,200 per month. Operation Theatre Allowance goes up from Rs 360 to Rs 540 per month. Patient Care Allowance goes up from Rs 2070-2100 to Rs 4100-5300 per month.

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