7th Pay Commission: Cabinet approves Rs 30,748 crore allowances for central govt employees

The wait for the allowances by the central government staff is finally ended today as the Cabinet has taken a final decision on the long-pending recommendations submitted by Ashok Lavasa Committee. Union Cabinet today approves recommendations of 7th Pay Commission on allowances with 34 modifications, Finance Minister Arun Jaitley said in press conference.

Finance Minister Arun Jaitley. PTI

Finance Minister Arun Jaitley. PTI

The revised rates will be effective from 1 July 2017. The announcement will benefit 34 lakh central government civil employees and 14 lakh defence employees. The 7th Pay Commission's recommendations will have combined additional financial burden of Rs 30,748 crore per annum on the central government. The modification, which is based on the recommendations of Committee on Allowances, will result in additional financial implication of Rs 1,448 crore over and above suggestions made by 7th Central Pay Commission.

The Lavasa Committee has suggested modifications in some allowances applicable universally to all employees and also for those in specific categories, including railways and defence, after examining the 7th Pay Commission recommendations.

The Lavasa Committee on allowances was constituted by the government to examine the Central Pay Commission (CPC) recommendations on allowances. It had submitted its report to Finance Minister Arun Jaitley in April 2017.

Here is the details of 7th Pay Commission recommendations:

Updated Date: Jun 28, 2017 20:35 PM

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