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Monday
September 2017
10:07 AM IST
News Headlines
Rahul 'thanks' Sushma for recognising Cong legacy        Bangla govt dismisses reports about plot to kill Hasina        India beat Aus by 5 wkts to clinch ODI series, grab No. 1 spot        Pak's UN envoy tries to pass off Gaza image as Kashmir        Kerala minister Thomas Chandy rejects encroachment charges; opposition press for resignation        Shiv Sena takes to streets against inflation, fuel price hike        Journalist KJ Singh, mother found dead: Punjab Police sets up SIT to probe case, IJU condemns the murder        We created institutions of excellence, Pakistan created terror factories: Sushma at UN General Assembly        Early count puts Bill English ahead in New Zealand election        Another powerful aftershock jolts Mexico with 6.1 magnitude        Pakistan name five upcapped players in 16-man squad for Sri Lanka Tests        Rajasthan's 'Falahari Baba' arrested for rape        LDF entry of BDJS: : Kanam breaks silence        Chandy issue: Achuthanandan takes a dig at Pinarayi        Malappuram genital chopping case: Police confused        Injustice being done, says Manju        Thomas Chandy alleges conspiracy in encroachment row        Medium-intensity earthquake in Kashmir Valley        IRCTC denies reports of some banks cards barred for payment        We don't indulge in vote bank politics: Modi        
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Kerala News
7th Pay Commission: Cabinet approves hike in allowances for central govt staff from July 1
 
(New Delhi,Jan 29, 2017):The Union cabinet approved on Wednesday the new allowance structure for 34 lakh central government and 14 lakh defence staffers, giving their pay cheques a significant bump from next month.

The decision completes the move to the 7th pay commission structure and the biggest jump in salaries will be due to the hike in the House Rent Allowance, which will see a 45% increase on average in a city like Delhi.

It is expected to spur spending and prop up demand, which sagged since the November 8 demonetisation that led to a severe cash crunch. The buoyant consumer demand could also translate into political goodwill for Prime Minister Narendra Modi’s Bharatiya Janata Party as it heads into fresh round of state elections starting with Gujarat later this year.

Salaries of government employees in India — from teachers and clerks to engineers and bureaucrats — are divided into several components that include multiple ‘allowances’ based on their jobs. Their basic pay component was revised a year ago on recommendations of the 7th pay commission, while the allowances remained the same since that part of committee’s proposals were under review.

Special gainers in Wednesday’s exercise are soldiers (see box), who will see a 100% spike in the allowance for extreme risk postings such as in Siachen.

Finance minister Arun Jaitley said the government decided to follow the Committee of Allowances’ suggestion not to abolish 12 of the 53 allowances that 7th pay commission wanted scrapped.

The move will cost the government Rs 30,748 crore annually, roughly Rs 1,440 crore more than what it would have had the government followed the pay commission’s report to the letter.

India routinely sets up committees — Pay Commissions — to revise remunerations for government employees.

The latest one, the 7th pay commission led by former SC judge Ashok Kumar Mathur, had recommended many allowances to be scrapped or bunched together. The suggestion was opposed by government employees, which led to a review committee being formed under finance secretary Ashok Lavasa: the CoA.

Sharing details, Jaitley said the Pay Commission recommended reduction in the HRA rates to 24% for X-, 16% for Y- and 8% for Z- category cities.

“As the HRA at the reduced rates may not be sufficient for employees falling in lower pay bracket, it has been decided that HRA will not be less than Rs 5400, Rs 3600 and Rs 1800 for X, Y and Z category of cities respectively.

“This floor rate has been calculated at 30%, 20% and 10% of the minimum pay of Rs 18,000. This will benefit more than 7.5 lakh 1 to 3 levels of employees,” the minister said.

The government also decided to tweak the HRA revision condition. “The Central Pay Commission had recommended revision of HRA when dearness allowance reaches 50% and 100 %. The government decided to revise rates when DA crosses 25% and 50% respectively.”

X category cities are ones with population of more than 50 lakh, Y with 5-50 lakh people and Z with less than 5 lakh.

In a city like Delhi, the HRA for mid joint-secretary level officer will, for instance, now go up to Rs 44,640 from Rs 22,500. This officer’s basic pay was revised last year to Rs 1.86 lakh from Rs 85,000.


LDF entry of BDJS: : Kanam breaks silence
Chandy issue: Achuthanandan takes a dig at Pinarayi
Malappuram genital chopping case: Police confused
Injustice being done, says Manju
Thomas Chandy alleges conspiracy in encroachment row
BDJS stays away from NDA convention: BJP reacts
Congress leader abuses policeman, exempted fearing protests
Huge cache of ganja unearthed
RSS against Pinarayi Vijayan's remarks
RSS trying to weaken federal structure: Pinarayi Vijayan
Fresh infant death in Attappady
Kottayam press club witnesses dramatic arrest
Changanassery student drowns in pond
Youth's genitals chopped off in Malappuram
Plea in Supreme Court to stall NIA probe into Hadiya case
Asianet News office attacked
Noose tightens around Dileep; Crucial witnesses to prove his hand
Kannur teacher rapes minor, gets arrested
Sandalwood hunt: Two arrested from train
Nepotism case: Relief for EP Jayarajan
ENTERTAINMENT NEWS
'Newton' is India's official entry to Oscars 2018
 (Mumbai, Sep 22, 2017): Hindi film "Newton", a black comedy on the foibles of democracy, has  
This Malayali made Tamil music video is the new You Tube sensation
Title song of 'Julie 2' out
Rajinikanth first choice if I make 'King Lear': Bhardwaj
INTERNATIONAL NEWS
Bangla govt dismisses reports about plot to kill Hasina
 (Dhaka, Sep 24, 2017):The Bangladesh government today dismissed as "baseless" media reports t
We created institutions of excellence, Pakistan created terror factories: Sushma at UN General Assembly
Early count puts Bill English ahead in New Zealand election
Another powerful aftershock jolts Mexico with 6.1 magnitude
NATIONAL NEWS
Rahul 'thanks' Sushma for recognising Cong legacy
 (New Delhi, Sep 24, 2017):Congress vice president Rahul Gandhi today thanked External Affairs
Shiv Sena takes to streets against inflation, fuel price hike
Journalist KJ Singh, mother found dead: Punjab Police sets up SIT to probe case, IJU condemns the murder
Rajasthan's 'Falahari Baba' arrested for rape
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