Until now, central government employees had great concerns, since the larger picture relating to the 7th Pay commission was not clear, but with the Union Cabinet giving a go-ahead to the new allowance structure on Wednesday, the road ahead for 34 lakh central government and 14 lakh defence personnel is going to be easy with substantial increase in their pay cheques starting next month.

So, here are important takeaways from the approvals in respect of the 7th Pay Commission

1. HRA provisions decided upon by the cabinet: Depending on the city category i.e. X, Y and Z, HRA or housing rent allowance shall be payable at 24%, 16% and 8% respectively. Further, for each of the city category i.e. X, Y and Z, HRA is stipulated to be not less than Rs. 5400, Rs. 3600 and Rs. 1800 respectively which is calculated for a minimum pay of Rs. 18000 at 30%, 20% and 10% respectively.

Further, as against the recommendation of the CPC, the government has decided to revise HRA when the dearness allowance or DA crosses the 25% and 50% mark respectively.

2. Medical allowance for pensioners: has been increase from Rs. 500 to Rs. 1000

3. Siachen hardship Allowance: For officer grade personnels, the allowance has been increased from the recommended Rs. 21,000 to Rs. 42,500 while for soldiers it has been revised upwards from Rs. 14,000 to Rs. 30,000.

4. Ration Money Alllowance: For defence forces serving in peace areas, the allowance shall now on be given in cash and would be directly transferred to their bank accounts.

5. Children Education Allowance: For a maximum of 2 children, this allowance has been increased from the existing Rs. 1500 per month to Rs. 2,250 and concurrently the hostel subsidy stands increased from Rs. 4500 to Rs. 6750 on a monthly basis.

6. Patient Care Allowance: The allowance is also approved upwards from Rs. 2100 to Rs. 5300 per month.

7. Dress allowance: The new allowance category that subsumes charges pertaining to washing, kit maintenance, uniform, outfit shall be paid on an annual basis depending on employee category in 4 slabs Rs 5000, Rs 10,000, Rs 15,000 and Rs 20,000.

8. Special Allowance for child care for disabled women: The allowance has been increased from Rs. 1500 to Rs. 3000 per month.

9. Technical allowance now combined with higher qualification incentive: For defence staff working in technical areas, their allowance has been raised from Rs. 3000 to Rs. 4500 . For civilians, the incentive has got a raise from Rs. 2,000 and Rs. 10,000 to Rs. 10,000 and Rs. 30000.

10. One Additional Free LTC being extended to CAPF and Indian Coast Guard Personnels: The facility being offered to defence staff serving in high altitude or field of counter insurgency of additional free railway warrant shall now be extended to other armed personnels.

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