The Union Cabinet on Wednesday approved the 7th Pay Commission’s recommendations on allowances with 34 modifications. The move will benefit more than 47 lakh central government employees. The revised pay will come in effect from July 1.
House Rent Allowance will not be less than Rs 5,400, Rs 3,600 and Rs 1,800 – depending on the type of the city – and “calculated at 30%, 20% and 10% of the minimum pay Rs 18,000”, the Centre said in a statement. The revised HRA will benefit more than 7.5 lakh employees, the government’s principal spokesperson Frank Noronha said on Twitter.
The Centre has also approved an increase in the Siachen Allowance for soldiers from Rs 14,000 to Rs 30,000 per month and from Rs 21,000 to Rs 42,000 per month for officers who are involved in extreme risks. Among other benefits, the Cabinet has approved a medical allowance hike from Rs 500 to Rs 1,000 per month for pensioners and patient care allowance to Rs 4,100 per month.
The 7th Pay Commission examined as many as 197 allowances, of which they wanted 53 abolished and 37 others subsumed. The financial implication of this revision will cost the state exchequer Rs 30,748.23 crore per annum.