Seventh Central Pay Commission's recommendations - revision of pay scales - amendment of Service Rules/Recruitment Rules

Seventh Central Pay Commission's recommendations — revision of pay scales- amendment of Service Rules/Recruitment Rules

No. AB.14017/13/2016-Estt. (RR)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel and Training
New Delhi

Dated: 29th August, 2016

OFFICE MEMORANDUM

Seventh Central Pay Commission's recommendations — revision of pay scales- amendment of Service Rules/Recruitment Rules

The undersigned is directed to refer to the Office Memorandum of even number dated 9.8.2015 on the above mentioned subject wherein it was requested that as per the CCS (Revised Pay) Rules 2016 issued by Department of Expenditure vide Notification dated 25th July, 2016, consequential amendment in the existing Service Rules/Recruitment Rules shall be made by the Ministries/Departments by substituting the existing Pay Band and Grade Pay by the new pay structure i.e. "LEVEL in the PAY MATRIX" straightaway without making a reference to the Department of Personnel and Training (DOP&T)/Union Public Service Commission (UPSC).

2. In this regard, a confirmation meeting is scheduled to be taken by Joint Secretary (Establishment) to take stock of the latest position of amendment in Service Rules/Recruitment Rules. Joint Secretary (Administration/Establishment) of all Ministries/Departments along with the cadre controlling officers is requested to attend the meeting as per the schedule Annexed or depute a senior officer conversant with the matter to brief the progress.

3. The meetings would be held in Room No. 190, Ist Floor, North Block.

(G. Jayanthi)
Director (E-1)

To
Joint Secretary (Administration/Establishment)
All Ministries/Departments of Government of India

Annexure

Scheduled of the meeting to be taken by Joint Secretary (Establishment) to take stock of the latest position of amendment in Service Rules/Recruitment Rules
S. No.	Ministries starting with alphabets	Date and time
1.	A - C	3rd October, 2016 at 4.30 PM
2.	D - E	4th October, 2016 at 4.30 PM
3.	F - H	5th October, 2016 at 4.30 PM
4.	I - L	6th October, 2016 at 4.30 PM
5.	M-Q	7th October, 2016 at 4.30 PM
6.	R-V	13th October, 2016 at 4.30 PM
7.	W-Z	14th October, 2016 at 4.30 PM

Click to view the order

Enhancement of Bonus Ceiling for CG Employees – Finmin issued Orders on 29.8.2016

Grant of Productivity Linked Bonus (PLB) and non-productivity Linked Bonus (Ad-hoc bonus) in case of Central Government employees for the accounting year 2014-15 – enhancement of the calculation ceiling- Regarding.

No.7/4/2014-E-IIIA
Government of India
Ministry of Finance
(Department of Expenditure)

North Block, New Delhi
Dated the 29th August, 2016

Office Memorandum

Subject: Grant of Productivity Linked Bonus (PLB) and non-productivity Linked Bonus (Ad-hoc bonus) in case of Central Government employees for the accounting year 2014-15 – enhancement of the calculation ceiling- Regarding.

The undersigned is directed to invite attention to this Ministry’s 0M No.7/24/2007/E-lll.A dated regarding grant of non-productivity Linked Bonus (Ad-hoc Bonus) to the Central Government employees for the accounting year 2014-2015, whereby the calculation ceiling for the purpose of payment of ad-hoc bonus was monthly emoluments of Rs.3500. The Productivity Linked Bonus (PLB) in case of Central Government employees working under certain Ministries/Departments, where such PLB was in operation in 2014-15, was also paid by the respective Ministries/Departments for the accounting year 2014-15 based on the concurrence of this Ministry with the calculation ceiling at monthly emoluments of Rs. 3500.

2. The question of enhancement of the calculation ceiling for the purpose of payment of PLB and non-PLB (ad-hoc bonus), as the case may be, to the Central Government employees has been considered and the President is pleased to decide that the calculation ceiling of monthly emoluments for the purpose of payment of PLB and ad-hoc bonus, as the case may be, shall be revised to Rs.7000 w.e.f. 01.04.2014, i.e., for the accounting year 2014-15.

3. Accordingly, the PLB or ad-hoc bonus, as the case may be, as already paid to the eligible Central Government employees for the accounting year 2014-15 in terms of the above 0M dated 16.10.2015 pertaining to ad-hoc bonus and the respective sanctions issued by the concerned Ministries/Departments in respect of PLB under the respective schemes in operation during 2014-15 based on the specific concurrence of this Ministry, shall be re-worked out based on the calculation ceiling of monthly emoluments of Rs.7000 instead of Rs.3500.

4. While re-working out payment of PLB or ad-hoc orders, as the case  may be, under these orders for the accounting year 2014-15, all the other terms and conditions under which the payment was made shall remain unchanged.

5.  In respect of their application to the employees working in the Indian  Audit and Accounts Departments, these orders are issued in consultation with the office of the Comptroller and Auditor General of India.

6. Hindi version of this order will follow.

sd/-
(Amar Nath Singh)

Director

Click to view the order

Authority: http://finmin.nic.in/

Central government employees to get their pending 2 year bonus soon: FM

Central government employees to get their pending 2 year bonus soon: FM

New Delhi: Central government employees will get their pending 2 years bonus soon, Finance Minister Arun Jaitley on Tuesday said in the press conference on a charter of demands proposed of Central Trade Unions.

“The bonus entitlement for 2014-15 and 2015-16 will be released on the revised norms for central government employees. This was pending for two years. After this, the bonus will be covered under the 7th Pay Commission,” Finance minister Arun Jaitley told reporters in Delhi.

The announcement comes at a time labour unions have called a hunger strike on Friday over their demands.

The Left and Congress-affiliated unions have planned the general strike to oppose the NDA government’s economic and labour policies, exempting hospitals, medical stores, milk distribution and other emergency services from the day-long strike.

To discuss the issue with the trade unions, the government had formed a five-member team of Union ministers including Finance Minister Arun Jaitley, Power Minister Piyush Goyal, MoS Petroleum and Natural Gas Dharmendra Pradhan, Labour Minister Bandaru Dattatreya and MoS Home Jitendra Singh.

“Centre has decided to write to all states regarding compliance of Contract workers law,” said the Finance Minister at the press conference. He also added that the government ha not been able to adhere to all the 12 demands raised by unions.

TST

Government hikes minimum wage for workers as union strike nears

Government hikes minimum wage for workers as union strike nears

New Delhi: The Centre today announced a hike in minimum wage for unskilled non-farm workers of the central government to Rs 350 a day, from the current Rs 246, in an attempt to mollify trade unions that have threatened to go on a nation-wide strike on Friday.

Interacting with reporters here, Finance Minister Arun Jaitley said the bonus for 2014-15 and 2015-16 will be paid to central government employees based on revised norms. The Bonus Amendment Act will be implemented “strictly”.

He gave an assurance that the government will also take necessary steps to resolve the cases on payment of bonus pending in high courts and the Supreme Court.

The likely financial implications of the bonus move translate into Rs 1,920 crore per annum.

“In the last one and a half years, the inter-ministerial committee had meeting with central trade unions. Trade unions placed various demands. Some were labour related and some economic policy issues related. The government has taken some decisions with regard to those on the basis of their recommendations,” added Jaitley.

Power and Coal Minister Piyush Goyal and Labour and Employment Minister Bandaru Dattatreya were also present.

Jaitley said it has been decided to fix the minimum wages at Rs 350 per day for unskilled non-agricultural workers for ‘C’ category areas keeping in view the modalities of fixing minimum wages.

The decision was taken following deliberations at the meeting of the Minimum Wage Advisory Board under the chairmanship of the labour minister for revising the basic minimum wages in the central sphere.

The registration of the contract workers and their staffing agencies is mandatory and states will be advised to strictly implement the same, the finance minister said.

Errant contractors will face appropriate action for any violation, he warned.

The issue of giving social security benefit to the unorganised sector (like Anganwadi, mid-day meal, Asha volunteers) will be examined by a committee which will give its report at the “earliest”.

Asked about the strike call, Jaitley said: “I think we have responsible trade unions.”

On the opposition to the government’s plans to merge associate banks of SBI with the parent bank, Jaitley said “the merger is not subject of trade unions”.

“Their service conditions are not being hurt adversely or affected at all. There will be no impact of merger on service conditions of any employee. If government decides that we need strong banks, then unions would have to change their approach to the whole issue,” he asserted.

Dattatreya has held meetings with central trade unions wherein detailed discussions were held with regard to their charter of demands.

The issues have been taken up by inter-ministerial committee haded by the finance minister.

As many as 10 central trade unions have given a call for a one-day pan-India strike on September 2, 2016, to protest against the government’s labour reforms and “not paying heed to their demands”.

PTI

Hike in salaries of MPs under government consideration: Par panel

Hike in salaries of MPs under government consideration: Par panel

New Delhi: The issue of hike in salaries of MPs is under consideration of the government, a Parliamentary panel was informed today.

Deposing before the Joint Committee on Salaries and Allowances of Members of Parliament, representatives of the Parliamentary Affairs Ministry Committee said the issue of hike in salaries of MPs is under the consideration of the government, sources said.

The ministry, sources said, is working on the final draft before it is sent to the Prime Minister’s Office for approval.

At today’s meeting, some members lamented that while the recommendations of the 7th Pay Commission have been implemented, the lawmakers are yet to get a salary hike.

The Centre had in September last proposed to constitute a three-member Emoluments Commission to determine salary and allowances of Members of Parliament and it was endorsed at the two-day All India Whips Conference on September 29 and 30.

An MP gets a salary of Rs 50,000 per month. In addition, Rs 2,000 per day is paid as daily allowance when an MP signs the register while attending Parliament sessions or House committee meetings. An MP is also entitled to Rs 45,000 constituency allowance every month — Rs 15,000 for stationery and Rs 30,000 to employ secretarial assistance staff.

In their sitting on October 20 last year, the committee decided to enhance the amount of Constituency Allowance from the present Rs 45,000 to Rs 75,000, which required an amendment in rules.

MPs are also entitled for government accommodation, air travel and train travel facilities, besides three landline telephone connections and two mobile phones. They also get a loan of Rs 4 lakh to buy a vehicle.

PTI

Trade unions stick to Sept 2 strike, reject government wage hike

Trade unions stick to Sept 2 strike, reject government wage hike

New Delhi: Trade unions today said they will go ahead with nation-wide strike on September 2, rejecting as “completely inadequate” the government’s 42 per cent hike in minimum wage to Rs 350 per day.

“The government’s minimum wage announcement is completely inadequate. The strike stands and we demand they should enact a Lawto fix minimum (universal) wage,” All India Trade Union Congress General Secretary Gurudas Dasgupta said.

Earlier in the day, Finance Minister Arun Jaitley announced a slew of labour-friendly measures including hiking of minimum wage to Rs 350 a day for unskilled non-agricultural workers for ‘C’ category areas in central sphere.

Calculated monthly, it comes to Rs 9,100 minimum income (for 26 days) which is way below the unions’ demand of Rs 18,000. Initially, the unions had demanded Rs 15,000 as minimum monthly income for daily wagers but the demand was revised after the government accepted the recommendations of the 7th Pay Commission.

Asked whether this will be a benchmark wage for the entire country, Labour Secretary Shankar Aggarwal said that this is for workers in central sphere and states can fix a minimum wage lower or higher than this rate.

Explaining further, Labour Minister Bandaru Dattatreya said that an amendment in the Minimum Wage Act is required for fixing a universal minimum wage and an initiative has been taken in this direction.

“Finance Minister’s statement clearly shows that the government has not considered any of the demands in our 12-point charter. The unions have no other alternative but to fight for their rights,” Indian National Trade Union Congress Vice-President Ashok Singh said.

However, RSS affiliate Bharatiya Mazdoor Sangh has lauded the government’s announcements and decided to abstain from the general strike on September 2.

“We welcome it and are satisfied by the increase in minimum wages. BMS will not participate in the strike,” BMS General Secretary Virjesh Upadhyay said.

PTI

7th Pay Commission Latest News – Three important demands of NJCA

7th Pay Commission Latest News – Three important demands of NJCA which are likely to be discussed in the 7th CPC Meeting to be held on 1st September 2016

To discuss the anomalies related to the implementation of 7th Pay Commission, the high-powered Committee of Secretaries formed by Centre has invited leading employee union National Joint Council of Action (NJCA) for a meeting on September 1.

NJCA would be represented at the meet by it’s current convenor Shiv Gopal Mishra. Aggrieved Central Government employees pin their final hope in the outcome of the Sept 1 meeting. If the Government constituted body fails to incorporate their demand, a large section of the organized workforce would call a strike.

Although, it has not been revealed whether the Committee of Secretaries would attempt to negotiate the demands at the upcoming meet, it has been assured that grievances of the employees, as raised by the Unions, would be noted down in a detailed manner by the Secretaries. Representing NJCA, Shiv Gopal Mishra is expected to show an uncompromising stand on at least the following three demands: 1) Hike in Fixed Medical Allowance (FMA),  2) Revision in the hike of minimum salary, 3) Availability of ‘Option 1′ for pensioners.

Hike in Fixed Medical Allowance (FMA): 

Central Government employees had demanded the 7th Pay panel led by Justice (retd) AK Mathur to raise FMA from current Rs 500 per month to Rs 2,000 per month. The demand appears legit to the employee unions as even many of the private sector companies are paying Rs 1200 to Rs 1800 per month as medical allowance to lower-middle level employees.

Revision of hike in minimum salary: 

NJCA, along with other employee unions have raised the demand to restructure the hike in minimum salary using 3.68 fitment factor. The entry-level pay as per 6th Pay Commission was Rs 7,000. The AK Mathur-led panel increased the minimum salary by multiplying with 2.57 fitment factor. This increased the salary to Rs 18,000. If the 3.68 fitment factor would be used, the minimum salary would be restructured to Rs 26,000.

Availability of ‘Option 1′: 

The All India Postal & RMS Pensioners Association (AIPRPA) has demanded the Government to enable Option 1 for hiking their pensions. According to Option 1, the hiked pensions would be fixed in the pay matrix on basis of the grade and and pay band in which they were enrolled at the time of retirement. According to the second option, the pay panel has recommended the pension hike by using 2.57 fitment factor. The second option would multiply their existing pensions by 2.57.

Despite Shiv Gopal Mishra appearing as the leading voice among those who are articulating the cause of aggrieved employees, a number of central government employees have raised doubts against him. His decision to roll back the July 11 mass strike, which was expected to evoke the participation of 33 lakh central government employees, has not gone down well with those among the dissidents. Several employees have straightaway asserted that if the government fails to pay heed to at least the above three demands, a rejuvenated call for strike should be made.

Source: India.com

Revised Pay Matrix Levels as per 7th CPC for Posts in Indian Civil Accounts Cadre

Revised Pay Matrix Levels as per 7th CPC for Posts in Indian Civil Accounts Cadre

No. A-11014/2016/CGA/Gr.A/1837-41
Government of India
Ministry of Finance
Department of Expenditure
Controller General of Accounts

7th Floor, Lok Nayak Bhawan,
Khan Market, New Delhi- 110 003.

Dated : 29th August, 2016

OFFICE MEMORANDUM

Consequent upon the Govt. of India’s decision for implementation of 7th Central Pay Commission’s Recommendations vide Resolution dated 25th July, 2016, Min. of Finance, Deptt. of Expenditure has notified the orders for revised pay scales, fixation of pay and payment of arrears etc. Attention is drawn in this regard to Gazette Notification G.S.R. 721(E) dated 25th July, 2016. The details of posts in Indian Civil Accounts Cadre (ICAS) carrying existing Pay Band and Grade Pay corresponding to. the revised Pay Matrix Level are as under:

Sl. No.	Post	Existing (As per 6th CPC)		Revised (7th CPC)
		Pay Band	Grade Pay	Pay Level (Matrix)
1.	Controller General of Accounts (Apex Scale)	Rs. 80,000 (Fixed)	–	Level 17
2.	Addl. Controller of Accounts HAG+	Rs. 75,500-80,000	–	Level 16
3.	Pr. Chief Controller of Accounts HAG	Rs. 67,000-79,000	–	Level 15
4.	Senior Administrative  Grade SAG	PB-4 (Rs. 37,400- 67,000	Rs.10,000	Level 14
5.	Selection Grade in Junior Administrative Grade NFSG	PB-4 (Rs. 37,400-67,000)	Rs. 8,700	Level 13
6.	Junior Administrative Grade JAG	PB-3 (Rs.15,600-39100	Rs. 7,600	Level 12
7.	Senior Time Scale (STS)	PB-3 (Rs. 15,600-39,100	Rs. 6,600	Level 11
8.	Junior Time Scale (JTS)	PB-3 (Rs. 15,600-39,100	Rs. 5,400	Level 10

sd/-
(A.K.Bangalia)
Dy. Controller General of Accounts

Source : http://cga.nic.in/

Implementation of 7th CPC pension revision: Clarification on the points raised by banks

Implementation of 7th CPC pension revision: Clarification on the points raised by banks in the meeting held on 22.08.2016

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
CENTRAL PENSION ACCOUNTING OFFICE
TRIKOOT-II, BHIKAJI CAMA PLACE,
NEW DELHI-110066

CPAO/IT&Tech/7th CPC (Clarification)/2016-17

Dated: 24th Aug, 2016

Clarification on the points raised by banks in the meeting held on 22.08.2016

1	Applicability to absorbees	Para 7 (a) of the OM No. 38/37/2016-P&PW (A) (ii) dated-04.08.2016 issued by DP&PW stipulates that “Where the Government servants on permanent absorption in Public Sector Undertakings/ Autonomous Bodies continue to draw pension separately from the Government, the pension of such absorbees will be updated in terms of these orders. In cases where the Government servants have drawn one time lump sum terminal benefits equal to 100% of their pensions and have become entitled to the restoration of one-third commuted portion of pension as per the instructions issued by this Department from time to time, their cases will not be covered by these orders. Orders for regulating pension of such pensioners will be issued separately”.
2	Applicability of family pensions for absorbees	Para 7 (b) of the OM No. 38/37/2016-P&PW (A) (ii) dated-04.08.2016 issued by opapw stipulates that “In cases where, on permanent absorption in public sector I undertakings/ autonomous bodies, the terms of absorption and/or the rules permit grant of family pension under the CCS (Pension) Rules, 1972 or the corresponding rules applicable to Railway employees/ members of All India Services, the family pension being drawn by family pensioners will be updated in accordance with these orders."
3	List of absorbees to be provided on banks login.	List has been uploaded on banks login by NIC
4	Interpretation of para 6 of OM dated 04.08.2016 on dearness relief to employed/ re-employed pensioner.	It has been clarified by Director, DP&PW that “As is clear from para 7(a) of the OM dated 04.08.2016, the pension of those pensioners who are re-employed and were not drawing dearness relief before 01.01.2016, is also required to be revised w.e.f. 01.01.2016 in terms of the said oM. However, dearness relief on revised pension will not be admissible during the period of re-employment”.
5	Format of reporting through e-scrolls of 7th CPC	It has already been mentioned in para 3 of CPAOs OM No. CPAO/lT&Tech/Revision (7030/19 Vol-III/2015-16/109 dated-11th August, 2016 that “after paying the revised pension and arrears, banks have to flag the revised cases in the Format-A of e-Scrolls to be submitted to CPAO so that revised cases may be identified at CPAO. To enable the banks for flagging of such cases, necessary modifications have been made in the Format-A of e-Scroll by changing the heading of column -18 to “Applicable Pay Commission”. Under this column, banks have to fill “7” for the cases which have been revised under 7th CPC by them”. Further, in the Column No. 27 of Format-F in e-scroll titled “Pay Commission" 7th CPC may be incorporated and sent alongwith Format-A. Each CPPC must attach Format-F with each e-scroll.
6	Who would do Ex-gratia payment revision?	The DP&PW oM No.38/37/2016-P&PW (A) (ii), dated 04.08.2016 is meant for revision of pension only of pre-2016 pensioners/family pensioners for which banks have been authorized to revise the pensions and make payment accordingly. Revision of ex-gratia payment is to be dealt with in accordance with para 12.1 of DP&PW oM No. 38/37/2016-P&PW (A) (i), dated 04.08.2016. The ex-gratia revision cases are required to be dealt with by the Department concerned and not by banks
7	Specific case of the Chief Election Commissioner	In this context para 2.3 of DP&PW OM No. 38/37/2016-P&PW (A) (ii), dated-04.08.2016 clearly states that these orders do not apply to the retired High Court and Supreme Court Judges and other Constitutional/ Statutory Authorities whose pension etc. is governed by separate rules/orders.
8	How to deal with cases where pension is being paid on 5th CPC rates.	Following categories:-i) Employees suspended before 2006 and also retired before 01.01.2006. ii) Employees suspended before 2006 but retired after 01.01.2006. iii) Employees who retired before 2006 and against whom departmental/judicial proceedings were pending at the time of retirement. were allowed to draw provisional pension in the pre-2006 pay scales. Later on DP&PW vide 38/6/2010-P&PW (A)(pt) dated18.03.2013 had decided to revise all such cases of provisional pensions in terms of their OM No. 38/37/08-P&PW (A) dated-01.09.2008. As such these cases may be referred to the concerned Ministry/Department for revising them first as per 6th CPC before they are revised under 7th CPC.
9	Applicability of 7th CPC revisions to various categories of pensioners.	As per para 2.1 of DP&PW OM No.38/37/2016-P&PW(A) (ii) dated-4th August, 2016, “These orders shall apply to all pensioners/family pensioners who were drawing pension/family pension before 1.1.2016 under the Central Civil Services (Pension) Rules, 1972, Central Civil Services (Extraordinary Pension) Rules and the corresponding rules applicable to Railway pensioners and pensioners of All India Services, including officers of the Indian Civil Service retired from service on or after 1.1.1973. A pensioner/ family pensioner who became entitled to pension/ family pension with effect from 01.01.2016 consequent on retirement/death of Government servant on 31.12.2015, would also be covered by these orders”.The categories of pensioners further clarified by Director, DP&PW to SBI is as under:- i) The pension of Defence Civilian Pensioners, Postal and Telecom Pensioners under CDA category is regulated by CCS (Pension) Rules. These pensioners are, therefore, eligible for revision of pension under OM dated 4.8.16. However the absorbee pensioners of BSNL/MTNL who are getting pension under IDA category are not covered by this OM. The absorbee pensioners who had taken lump-sum in lieu of their monthly pension and are getting only one-third restored pension are also not covered by this OM. ii) The State Government pensioners are not eligible for revision of pension under this OM. However the All India Service officers and employees retired from CAG/AGs/Audit & Accounts Departments in States are covered under this OM.
10	Applicability of Additional Pension on attaining the age of 65 years to the pensioners of UT Chandigarh on the pattern of Punjab State Government	A clarification has been sought from IS (UT), MHA and DP&PW Central Government instructions allow additional pension only on attaining age of 80 years and above. Therefore, the additional payment on attaining the age of 65 years in case of UT Chandigarh pensioners banks should not grant additional pension on attaining the age of 65 years instead of 80 years until a clarification regarding applicability is received.
11	Contact Official in CPAO for 7th CPC clarification	Sl. No. Name & Designation Contact No. 1 Sh. Davinder Kumar, TD (NIC) 011-26175099 Mob. No. 9354806172 kumardavender[@]nic.in 2. Sh. Vijay Singh, Sr. AO (IT & Tech) 011-26166758 vijay.cpao[@]gmail.com 3. Sh. S.P. Sharma, Consultant Toll free - 1800117788 Mob. No.8010474683

http://cpao.nic.in/pdf/clarification_raiseedby_banks22082016.pdf

7th Pay Commission: Allowances committee working on inflation expectations

7th Pay Commission: Allowances committee working on inflation expectations

New Delhi: Finance Ministry sources today said on condition of anonymity that committee under Finance Secretary Ashok Lavasa has been set up to examine the suggestions of the 7th Pay Commission on allowances, has been working to make the new allowances structure keeping in mind the inflation.

The sources revealed that the committee will consider the high cost of housing rent in cities while fixing the new house rent allowance (HRA) and it will submit its report on new allowances of 48 lakh central government employees. “At this moment it is difficult to say, but it will take at least one month,” they said adding that the time limit can’t be extended.

Responding to various queries and opinions sources said issues like inflation, the government’s financial position and new salary structure of government employees would also be taken into consideration before submitting the report on new allowances.

By giving house rent allowance hikes, the committee is likely to seek to encourage property owners to rent out their properties, reduce the shortage of dwellings and to provide ‘housing for all central government employees’, sources added.

Besides the basic salary, a large portion of central government employees’ salary is the house rent allowance; so no changes of percentage will be made in this category of allowance this time, they confirmed.
Accordingly, ‘X’ class cities Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune, where employees will get 30 percent of their pay matrix as house rent allowance (HRA), no increasing from the existing 30 percent.

Employees posted at ‘Y’ class cities covers near about 90 stations, will receive 20 percent of pay matrix, at the existing percentage.

In other areas, the house rent allowance will be 10 percent of pay matrix, which is the existing rate of house rent allowance (HRA) of ‘Z’ class cities.

While the pay commission recommended HRA for these cities to 24%, 16% and 8% respectively of the pay matrix.

The Finance Secretary Committee on allowances will not propose to increase the rate of transport allowances of central government employees, they will go with ditto the 7th Pay Commission recommendations, they stressed.

The 7th Pay Commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 existing allowances.

The representatives of the employees unions had earlier conveyed to the centre that they did not want it to approve the 7th Pay Commission recommendations on allowances without examining them further.
So cabinet referred it to the Finance Secretary committee to examine, when it cleared the recommendations of 7th Pay Commission in respect of the hike in basic pay and pension on June 29.

Finance Minister Arun Jaitley said in Rajya Sabha in this month, “The committee has been formed under Finance Secretary to look into allowances. Whatever the committee decides, it will go to the Cabinet.”