Union Cabinet on Wednesday approved the much-awaited recommendations of the 7th Pay Commission on allowances including House Rent Allowance (HRA). The revised recommendations will be applicable with effect from July 1, 2017. The move will directly benefit around 34 Lakh central government employees and 14 lakh defence personnel. The increased allowances will put Rs. 30,748 crore extra annual burden on the Govt.
Here are the 10 key takeaways:
# HRA allowances are divided into three categories X, Y and Z. A minimum floor for the lowest category has to be ascertained - FM Arun Jaitley.
# House Rent Allowance will be paid at 24 percent, 16 percent and 8 percent for X, Y, Z cities respectively.
# There has been an enhancement in Siachen Allowance for Army personnel from Rs 14000 per month to Rs 30000 per month (other ranks), Rs 21000 per month to Rs 42500 per month (for officers).
# There will a restructuring related to technical allowances for people serving in Atomic Research Centre.
# Contested Attendance Allowance on 100 percent disablement increased from Rs 4500 per month to Rs 6750 per month.
# Pensioners will be given a medical allowance of Rs 1000 per month instead of Rs 500 per month.
# Nursing Allowances rates increased from Rs 4800 per month to Rs 7200 per month.
# Operation Theatre allowance increased from Rs 360 per month to Rs 540 per month.
# Hospital patients allowance increased from Rs 2070 per month - Rs 4100 per month.
# The ration allowances for armed forces personnel posted in peace areas shall be given in cash or deposited in their accounts.