Great News! Government asks ministries to settle down modified allowances from July
The Ministry of Finance has asked all central ministries to make sure changes rates of allowances according to the 7th Central Pay Commission also known as CPC are salaried from the present month. It surely brings the benefits to more than 48 lakh employees.
In a roll-over reward to central government staff, the Union Cabinet had previous month accepted recommendations of the CPC for than 34 modifications, which will signify an extra annual load of Rs. 30,748 crore directly to the exchequer. The changed allowance will be in effect from July 1, 2017, and surely bring huge benefit for the 14 lakh defense personnel and 34 lakh civilian employees.
The declaration expressing the central government’s decision on the advice of the CPC on Allowances was available in Gazette of India a day before. Now, the ministries associates have now been suggested to issue their Orders on Allowances managed from their side quickly so that the changed allowance rates get shown in the present month’s salary bills of the government sector employees,” according to the finance ministry.
The increased salaries as proposed by the 7th Central Pay Commission would have outlay Rs. 29,300 crore to the exchequer. The changed allowances endorsed by the Union Cabinet started by Prime Minister Narendra Modi will raise the burden by Rs. 1,448 crores to Rs. 30,748 crore per year.
The change allowances have been rationalized and included in newly proposed Dress Allowance to be salaried annually in four slabs — Rs. 15,000 and Rs. 20,000 to Rs. 5,000, Rs. 10,000, for different category of employees.
The allowance which offered to CRPF personnel position in Naxal-hit areas will be managed by the Risk and Hardship Matrix and the changed rates will go up to Rs. 8,400 -16,800 and Rs. 17,300-25,000 on monthly basis.
The administration has said that house rent grant will be settled down at the change rate of 8%, 16% and 24% for X, Y & Z cities. House rent will not be less than Rs 5,400, 3,600 and 1,800 for X, Y and Z areas and is hoped to give an advantage to more 7.5 lakh employees. X group cities include where a population is just 50 lakh and above, Y includes a population of 5 and 50 lakh and finally, Z category includes below 5 lakh.