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Govt asks Ministries to pay allowances as per Pay Commission with current salary

By TIOL News Service

NEW DELHI, JULY 07, 2017: THE Central Government's decision on recommendations of the 7th Central Pay Commission (CPC) on Allowances has been notified and the Govt has in turn directred the Ministries to issue further orders on Allowances governed by them immediately so that the revised rates of allowances get reflected in the current month's Salary Bills of the Government employees.

These modification are expected to benefit 34 lakh civilian employees and 14 lakh defence forces personnel. The 7th CPC examined as many as 197 allowances, recommending abolition of 53 allowances and subsuming 37 in others.

The 7th CPC has recommended revised rates commensurate with Dearness Allowance. There was no raise in allowances which are fully DA-indexed allowances, whereas non-DA indexed allowances were raised by 2.25% and partially indexed allowances were raised by 1.5%. The 7th CPC projected additional financial implication at Rs. 29,300cr per annum. The modifications are expected to have additional implication of Rs 1448.23 cr with the combined additional financial implication estimated at Rs 30748.23 crore per annum.

(See 7th Pay Commission Resolution 6-07-2017)


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