Ministry of Railway 
Government India
Compendium of
Seventh Pay Commission Allowances

Compiled by:
Pay Commission Date.

Index

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Ministry of Railways
Government Of India
Compendium of Seventh Pay Commission Allowances

Index of Contents

Summary

Source: NFIR

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GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

S.No. PC-VII/27
No,PC-V/2017/A/FPA/1

RBE No. 77/2017
New Delhi, dated 28/07/2017

The General Managers
All Indian Railways & PUs
(As per mailing list)

Subject:- Discontinuance of Family Planning Allowance for adoption of small family norms recommendation of the 7th Central Pay Commission

Please refer to Board’s letter No. PC-V/2008A/O/2(FPA) dated 14.10.2008 (RBE No. 151/2008) regarding the existing rates of Family Planning Allowance (FPA) admissible to Railway employees and as provided for in para 9 of the Schedule for RS (RP) Rules, 2016, dt.02.08.2016 (RBE No. 93/2016), the matter regarding allowances (except Dearness Allowance) based on the recommendations of the 7th Central Pay Commission were to be notified subsequently and separately. Until then, all allowances were required to be paid at the existing rates in the exisiting pay structure (the pay structure based on 6th Pay Commission) as if the pay has not been revised w.e.f. 1st January 2016. Accordingly, FPA was also required to be paid at the existing rates specified in the aforesaid Board’s letter dated 14.10.2008.

2. The decisions of the Government on various allowance based on the recommendations of the 7th Central Pay Commission and in the light of the recommendations of the Committee under the Chairmanship of the Finance Secretary) constituted for this purpose, have since been notified. The recommendation of the 7th Central Pay commission to abolish Family Planning Allowance has been accepted and this decision is effective from 1st July 2017. Accordingly, Family Planning Allowance as admissible higherto, shall ceast to exist in all cases.

3. These orders shall take effect from 1st July, 2017 and hence Family Planning Allowance shall stand discontined w.e.f. 1st July, 2017.

4. This issues with the occurence of the Finance Directorate of the Ministry of Railways.

5. Hindi version is enclosed.

(Authority : MoF’s OM No. 12(4)/2016-EIII.A, dt 7th July, 2017)

(N.P. Singh)
Dy, Director Pay Commission-V
Railway Board

Source : NFIR

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According to the Gazette Notification issued by the Government on 6.7.2017, Junior Commissioned Officers (JCOs) are now eligible to travel by Air.

Those who are in Level 6 to 8 of Pay Matrix (Pre-Revised Grade Pay 4200, 4600 and 4800), as the Travel entitlement for them so far is AC II by Train only. Now the are entitled to Travel By Air in Economy Class.

Level 6 to 8 pertain to the three ranks of JCOs – Naib Subedar, Subedar and Subedar Major – in the Army, and their equivalents in the Navy and Air Force. Level 5 A of Defence Forces to be clubbed with Level 6 for travelling entitlements.

7th CPC Recommendations on Travel Entitlements: The 7th Pay Commission opines that the present provisions are adequate. Hence, status quo is recommended with the present system of differentiation based on Grade Pay duly substituted by the Levels of the Pay Matrix.

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New Delhi: Despite all that has been said about the arrears on allowances under the 7th Pay Commission recommendations, an important issue for central government employees, which has now been notified on June 6 without arrears.

Finance Minister Arun Jaitley had claimed his commitment to implement the allowances after four months of the basic pay hike but it failed to come true.

More than 18 months have passed since the 7th pay commission report was submitted and 11 months have elapsed since the union cabinet approved the 7th Pay Commission recommendations for basic salary hike of central government employees, the centre now notified 7th pay commission allowances without arrears.

The government has given higher basic pay in August 2016 with arrears, effective from January 1, 2016 to its employees on the recommendations of the 7th pay commission but the increased allowances, which comes into effect from July 1, 2017.

The government used delaying tactics to save the government money to pay revised allowances without arrears. Hence the ‘Committee on Allowances’ headed by the Finance Secretary Ashok Lavasa was formed for examination allowances.

However. the government stuck with the 7th Pay Commission’s recommendations on allowances and gave nod accordingly but no recommendation of the ‘Committee on Allowances’ was approved.

The delay in the implementation of allowances is chiefly because of the financial gains of the government, while financial condition of the government is very sound.

The delayed implementation of allowances have saved the government nearly Rs 40,000 crore.

The non-payment of arrears on allowances has caused tremendous irritation and frustration among the central government employees.

TST

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7th Central Pay Commission – Resolution on Allowances, Dated 6th July, 2017

MINISTRY OF FINANCE
(Department of Expenditure)

RESOLUTION

New Delhi, the 6th July, 2017

No. 11-1/2016-IC.-The Seventh Central Pay Commission (the Commission) was set up by the Government of India vide Resolution No. 1/1/2013-E.III (A), dated the 28th February, 2014. The period for submission of report by the Commission was extended upto 31st December, 2015 vide Resolution No. 1/1/2013-E.III (A), dated the 8th September, 2015. The Commission, on 19th November, 2015, submitted its Report on the matters covered in its Terms of Reference as specified in the aforesaid Resolution dated the 28th February, 2014.

2. The Government, vide Para 7 of the Resolution No. 1-2/2016- IC, dated 25th July, 2016, decided to refer the allowances (except Dearness Allowance) to the Committee on Allowances (the Committee). It was also decided that till a final decision on allowances is taken based on the recommendations of the Committee, all allowances will continue to be paid at existing rates in existing pay structure, as if the pay had not been revised with effect from 1st day of January, 2016.

3. The said Committee submitted its Report on 27th April, 2017. The Government, after consideration, has decided to accept the recommendations of the Commission on allowances with 34 modifications as specified in Appendix I. The Statement showing the recommendations of the Commission on allowances and the Government’s decision thereon is annexed at Appendix II.

4. Some of the allowances paid to the Indian Navy which are also paid to the Indian Coast Guard at present have not been mentioned in the Report of the Commission. The Government has decided that these allowances which are admissible to the Indian Navy shall also be paid to the Indian Coast Guard at par with the Indian Navy.

5. The rates in respect of 12 running allowances relating to the Ministry of Railways shall be notified by the Ministry of Railways with the concurrence of the Ministry of Finance.

6. The revised rates of allowances shall be admissible with effect from the 1st July, 2017.

ORDER

Ordered that this Resolution be published in the Gazette of India, Extraordinary.

Ordered that a copy of this Resolution be communicated to the Ministries and/Departments of the Government of India, State Governments, Administrations of Union territories and all other concerned.

R.K.CHATURVEDI,
Jt. Secy.

Click to view the complete order

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New Delhi: The Union government has dropped higher allowances proposal under the 7th Pay Commission from its today’s cabinet meeting agenda at the last minute, the Finance Ministry officials involved with the process of higher allowances told The Sen Times on condition of anonymity.

The officials said recommendation of the Empowered Committee of Secretaries (E-CoS) headed by Cabinet Secretary P K Sinha on higher allowances, was due to come before the Union cabinet at its meeting today for formal approval.

However, the item was dropped from the agenda at the last minute, as Finance Minister Arun Jaitley is on an official visit to South Korea, they added.

However, they said that the Cabinet may decide on 7th pay commission allowances this month.

In June 2016, the Cabinet approved 14% pay and pension hike for central government employees and pensioners under the 7th Pay Commission recommendations with effect from January 1, 2016.

The decision on higher allowances was postponed by the Cabinet on that time because the 7th Pay Commission wanted abolition of 52 allowances and subsuming of another 36 allowances into larger existing ones out of total 196 allowances.

Employee unions were opposed it, which government complied with formation of the Committee on Allowances headed by Finance Secretary Ashok Lavasa in June 2016 to review the allowances.

The Committee on Allowances submitted its report to Finance Minister Arun Jaitley on April 27.

The report was then taken up by the Department of Expenditure for examination, following which it was passed on to the Empowered Committee of Secretaries set up to screen the 7th Pay Commission recommendations and to firm up the proposal for approval of the Cabinet.

The Empowered Committee of Secretaries was in the process of preparing the Cabinet note on higher allowances, which was completed on June 1.

The central government employees are now getting no new allowances (except Dearness Allowance) with their new pay structure till the cabinet nod.

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The Union Cabinet today did take up proposals related to 7th pay commission allowances, including HRA, as it was not part of the meeting’s agenda, sources told NDTV. Finance Minister Arun Jaitley is on an official visit to South Korea. Nearly 50 lakh central government employees could get revised allowances under 7th pay commission award, including HRA or house rent allowance, from July, Financial Express in a report said last week. The report, citing sources, said that the Cabinet may decide on 7th pay commission allowances this month.

The Ashok Lavasa committee, which examined the 7th pay commission’s recommendations on allowances, submitted its report to the finance minister on April 27. An Empowered Committee of Secretaries was set up screen the report and firm up proposals for the Cabinet.

The Lavasa committee suggested some modifications in some allowances that are applicable universally to all employees as well as certain other allowances which apply to specific employee categories, the finance ministry had said in a statement. Economists say that disbursement of 7th pay commission allowances is expected to give a further boost to consumer spending and thus the broader economy.

The Reserve Bank has however flagged upside risks to inflation from disbursement of revised 7th pay commission allowances. “At the current juncture, global political and financial risks materialising into imported inflation and the disbursement of allowances under the 7th central pay commission’s award are upside risks. The date of implementation of the latter is still not announced and as such, it is not factored into the baseline projections,” the RBI said in its latest monetary policy statement last week.

The government had last year accepted the recommendation of Justice AK Mathur-headed Seventh Pay Commission in respect of the hike in basic pay and pension. The 7th Pay Commission’s recommendations relating to allowances were referred to the Ashok Lavasa committee.

The 7th pay commission had recommended that house rent allowance be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay, depending on the type of city. The 7th pay commission had also recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent when DA or dearness allowance crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when it crosses 100 per cent. With regard to allowances, employee unions have demanded HRA at the rate of 30 per cent, 20 per cent and 10 per cent.

The 7th pay commission had recommended that of a total of 196 allowances, 52 be abolished altogether and 36 be abolished as separate identities by subsuming them in another allowance.

The Cabinet had earlier approved modification in recommendations of the 7th pay commission relating to the method of revision of pension of pre-2016 pensioners and family pensioners based on recommendations of a high-level panel. The decision will benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners.

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The committee which examined the 7th pay commission’s recommendations on allowances submitted its report to the finance minister on April 27.

Union leaders of central government officials are likely to meet government officials and will seek an update on 7th pay commission allowances, an union leader, who would be part of the delegation, said. The committee which examined the 7th pay commission’s recommendations on allowances submitted its report to the finance minister on April 27. The committee was headed by Finance Secretary Ashok Lavasa and had Secretaries of Home Affairs, Defence, Health & Family Welfare, Personnel & Training, Post and Chairman, Railway Board as Members and Joint Secretary (Implementation Cell) as Member Secretary.

The Lavasa committee has suggested some modifications in some allowances that are applicable universally to all employees as well as certain other allowances which apply to specific employee categories, the finance ministry said in a statement. The finance ministry said that an Empowered Committee of Secretaries (E-CoS) will screen the allowance committee report on 7th pay commission recommendations. The empowered committee will then firm up the proposal for approval of the Cabinet
The 7th pay commission had recommended that house rent allowance or HRA be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay, depending on the type of city. The 7th pay commission had also recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent when DA crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when DA crosses 100 per cent. With regard to allowances, employee unions have demanded HRA at the rate of 30 per cent, 20 per cent and 10 per cent.
The 7th pay commission had recommended that of a total of 196 allowances, 52 be abolished altogether and 36 be abolished as separate identities by subsuming them in another allowance.
The Cabinet had earlier approved modification in recommendations of the 7th pay commission relating to the method of revision of pension of pre-2016 pensioners and family pensioners based on recommendations of a high-level panel. The decision will benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners.

Via: NDTV

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New Delhi: Central government employees’ will not to go on strike on May 23 in protest at the “government inaction” on fulfilling their demands, including hike in allowance as per the 7th Pay Commission recommendations.

No central government office will be closed at any part of the country and the trains will also be running on May 23.

The Confederation of central government employees, has temporarily postponed the strike scheduled on May 23 following assurance of government to hike allowances shortly.

“The strike has been put on hold for now following the assurance of government. However, the confederation will make sure that the genuine demands of the employees are met with,” a top leader of confederation, who did not wish to be named told us.

“In view of government’s assurance to hike allowances shortly, our strike on May 23 stands deferred,” he added.

The Confederation of central government employees had given the strike call protesting against the delay in allowance hike as per the revised 7th Pay Commission recommendations.

The confederation is opposed to the government’s delaying tactics to hike allowances of central government employee.

After the government implemented the recommendation of the 7th Pay Commission from January 1, 2016 in respect of basic pay and dearness allowances, the Committee on Allowances, headed by Finance Secretary Ashok Lavasa was constituted in June last year.

The 7th Pay Commission had recommended that of a total of 196 allowances, 52 be abolished altogether and 36 be abolished as separate identities by subsuming them in another allowance, which triggered resentment among central government employees that governments complied with formation of the Committee on Allowances.

The Committee on Allowances had submitted its report to Finance Minister Arun Jaitley on April 27.

The report is being currently examined by the Department of Expenditure. It will be placed before the Empowered Committee of Secretaries (E-CoS) set up to screen the 7th Pay Commission recommendations and to firm up the proposal for approval of the Cabinet.

The central government employees now get all allowances except dearness allowance at the old rates until the cabinet approval of higher allowances.

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