Saturday, July 1, 2017

Cabinet approved revised allowances for central employees

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved the recommendations of the 7th CPC on allowances with some modifications. The revised rates of the allowances shall come into effect from 1st July, 2017 and shall affect more than 48 lakh central government employees.

Salient features :

1. No arrears as it would come into effect from 01.07.2017

2. HRA remains @ 24, 16 and 8 % ( As recommended by Pay Commission)
As the HRA at the reduced rates may not be sufficient for employees falling in lower pay bracket, it has been decided that HRA shall not be less than Rs 5400, Rs 3600 and Rs1800 for X, Y and Z category of cities respectively. This floor rate has been calculated @ 30%, 20% and 10% of the minimum pay of Rs.18000.

Keeping in view the current inflation trends, the Government has decided that these rates will be revised upwards when DA crosses 25% and 50% respectively.
3. Children Education Allowances enhanced from Rs 1500 p.m. to Rs 2250 p.m.
Hostel Subsidy will also go up from Rs 4500 per month to Rs 6750 per month.

Click here for the PIB Release for details.

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