New Delhi, May 4: Almost a week after Committee on Allowances led by Finance Secretary Ashok Lavasa submitted its review report to Finance Minister Arun Jaitley under 7th Pay Commission’s recommendations, the Narendra Modi-led Union Cabinet approved modifications on pay and pensionary benefits on Wednesday. Around 47 lakh central government employees have been eagerly waiting for arrears on allowances and increase in minimum wage and it seems that their wait is finally over. The Union Cabinet also approved modifications on pensionary benefits on Wednesday which is a good news for around 53 lakh pensioners. Here are some facts you need to know about Cabinet’s decisions and the meeting of Standing Committee of National Council (JCM) held on the same day. On Wednesday a meeting of the JCM was also held in which the protest by government employees over an abnormal delay in the implementation of allowances was discussed. Also Read – 7th Pay Commission: Cabinet approves Disability Pension for Defence Pensioners

All you need to know about 7th Pay Commission and the Union Cabinet approval:

  • The increase in minimum wage and fitment formula, revision of pension and grant of dearness relief to autonomous body pensioners were among the core topic discussed at the JCM (Joint Consultative Machinery) meeting which was chaired by Secretary, Department of Personnel.
  • The proposed move to close down Director General of Supplies and Disposal was also raised at the JCM meeting.
  • The Union Cabinet after a brief meeting approved the modifications in the 7th Pay Commission recommendations on the pay and pensionary benefits.
  • The benefits of proposed modifications have been made effective from January 1, 2016, from when the 7th Pay Commission was implemented.
  • After the implementation of the current decision, the annual bill of the Central government is likely to be Rs 1,76,761 crore. The two major decisions taken by Union Cabinet were on the revision of pension of pre-2016 pensioners and family pensioners; and disability pension for defence pensioners.
  • The Cabinet also approved the modifications relating to the method of revision of pension for pre-2016 pensioners and family pensioners.
  • This modified formulation is likely to benefit more pensioners than the previously recommended formulation. More than 55 lakh pre-2016 civil and defence pensioners and family pensioners will benefit from this latest amendments.
  • The Union cabinet had also approved retention of a percentage-based regime of disability pension implemented after the 6th pay Commission. The 7CPC had also recommended replacing the percentage-based system with a slab-based system.
  • The Ashok Lavasa Committee’s recommendations on allowances has not yet been shared in public domain but reports suggests that the committee has taken a favourable stand on subjects like the house rent allowance (HRA).