22
Monday
January 2018
8:02 PM IST
News Headlines
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | About Deepika 
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.


Dileep has actress attack visuals with him, says prosecution
Political attacks continue in Kannur
Class 10 student meets with tragic end at Thiruvalla
Sivankutty MLA writes to CM to drop case on Assembly violence
Bhavana ties the knot with Naveen
KM Mani gives fitting reply to Kanam Rajendran
ANSI to study genetic disorders among Kerala tribes
ABVP worker's murder: SDPI workers arrested
ISIS killed him, claims Kummanam
Thiruvananthapuram Mayor VK Prashanth injured in car accident
Youth Congress assaults youth who questioned Chennithala
No investigation into Dileep's complaint
Housewife murdered in Kasargod
Achuthanandan praises Congress
Food poisoning: 120 school children admitted in Thiruvananthapuram
CBI to probe case, Sreejith still unhappy
IS recruit from Kannur killed in Syria
One killed in bike - bus collision at Thiruvananthapuram
New team to probe Chandy case
NIA registers case against ISIS members from Kannur
ENTERTAINMENT NEWS
Bruce Willis’ Death Wish to release on 9th of March, 2018
 (Jan 22, 2018): While the recently released trailer of the Bruce Willis starrer action thrill  
Trollers say sorry to Gopi Sundar
I never sexually assaulted my daughter, says Woody Allen
Watch short film titled 'Oru Marunadan Pranayakadha' by Mumbai Malayalees
INTERNATIONAL NEWS
Pence kicks off Israel visit with Netanyahu meeting
 (Jerusalem, Jan 22, 2018): Vice President Mike Pence kicked off his visit to Israel today wit
Rohingya Muslim refugee return to Myanmar delayed
Kabul hotel attack toll at least 22: officials
Ecuador president calls Julian Assange a 'problem'
NATIONAL NEWS
30-year-old medical representative shot dead in Kanpur
 (Kanpur, Jan 22, 2018): A 30-year-old medical representative was shot dead by two unidentifie
SC tranfers pleas on Loya's death from HC to apex court
2008 Gujarat blasts mastermind held by Delhi police
Pak shells areas along LoC, IB in Jammu
Untitled Page
Rashtra Deepika LTD
Copyright @ 2017 , Rashtra Deepika Ltd.