Union Cabinet approves revised allowance structure to central govt employees

The Centre on Wednesday approved the revised allowance structure payable to central government employees under the 7th Pay Commission. The decision was taken at the Union Cabinet meet chaired by Prime Minister Narendra Modi at his residence today.

"Union Cabinet has approved the recommendations of 7th CPC on Allowances with 34 modifications. Revised rates will be effective from July 1, 2017," Finance Minister Arun Jaitley said after the cabinet meeting.

The revised allowances will benefit at least 47 lakh employees of the central government. The government had last year accepted the recommendations of Justice AK Mathur-headed Seventh Pay Commission in respect of the hike in basic pay and pension. For allowances, the government had constituted a committee under Finance Secretary Ashok Lavasa to review the recommendations.

The decision to form the committee was taken after government employees complained that the pay revision was not adequate. The panel submitted its report to the Department of Expenditure, which conducted the first round of review, following which it was presented before the Empowered Committee of Secretaries.

The Committee then forwarded the report to the Cabinet. With the Cabinet taking a decision today, government employees are now set to receive their July salary with the hike.