New Delhi, Feb 19: The Union Government is on the verge of clearing the revised allowances for central government staff, precisely after a year of the implementation of the 7th Pay Commission. Reportedly, it is widely expected that the committee formed by the Government to review the 7th Pay Commission’s recommendations on all allowances payable to Central Government employees including Railway employees and Defence personnel will be submitting its report soon. Also Read - 7th Pay Commission Latest News: Ahead of Diwali, Maharashtra Govt Announces Rs 2000 Allowance For Anganwadi Workers

The 7th Central Pay Commission (CPC) recommended the basic pay for those cities with a population over 5 million a House Rental Allowance (HRA) of 24% . But the revised HRA which is being suggested at by the Finance Secretary-led panel is 30%. It means in this, the Government employees have something to rejoice about. Also Read - 7th Pay Commission Latest News: Ahead of Diwali, Tami Nadu Govt Announces Bonus For Over 2.91 Lakh Employees

Reports claim that the financial implication of the revised allowances will be within the Central Pay Commission’s estimate of around Rs. 29,300 crores. In the first year it shall also reportedly include the railways. Due to the demonetisation move and the extra taxes the people had to pay under the income disclosure schemes, the Government has a kind of safety valve. Also Read - 7th Pay Commission Latest Update Today: Ahead of Diwali, Govt Employees of These States to Get Bonus, Gifts | Details Here

In this background, 7th CPC recommendations on all Allowances and demand of Staff Side (Confederation / NJCA) in respect to these Allowances have been revisited and a brief on the same is as follows.

  • Out of 196 types of Allowances taken for consideration by 7th Pay Commission,
  • 12 allowances pertaining to running staff of Railways were not included as Railways wanted to consider the same based on bi-lateral discussions
  • 52 allowances have been proposed to be abolished
  • 36 allowances have either been subsumed in to existing allowances or proposed as new one.
  • 12 Allowances have been proposed to be retained as such with out any change.
  • Remaining Allowances have been retained but with some changes.
  • The HRA has been raised to 30 per cent opposed to the recommendation of the CPC of 24 per cent.
  • A grievance hearing has been set up by the Anomaly Committee to listen to the grievances of the Defence personnel.