The government has approved the recommendations of 7th Central Pay Commission on allowances with 34 modifications.The revised rates will be effective from 1st of next month.

The decision was taken at a Cabinet meeting chaired by Prime Minister Narendra Modi in New Delhi. The move will benefit 34 lakh civilian employees and 14 lakh Defence Forces Personnel. Briefing reporters after the meeting, Finance Minister Arun Jaitley said, the CPC examined 197 allowances out of which it recommended abolition of 53 allowances and subsuming 37 allowances.

He said, the House Rent Allowance will be paid at 24 per cent for X category cities, 16 per cent for Y category and 8 per cent for Z category cities. He said, the government has also fixed minimum HRA of 5400 rupees for X category cities, 3600 for Y category and 1800 rupees for Z category cities.

Mr Jaitley said, the fixed medical allowance for pensioners has been increased from 500 rupees to 1000 rupees a month. The Constant attendance allowance on 100 per cent disablement has also been increased from 4500 rupees to 6750 rupees per month.

Mr Jaitley who also hold Defence Portfolio announced increase in Siachen allowance for Defence personnel. He said, the allowance has been increased from 14 thousand rupees to 30 thousand for soldiers and from 21,000 to 42,500 rupees for officers per month for extreme risk and hardships. Mr Jaitley said, nursing allowance has been increased to 7200 rupees per month from 4800 rupees.

The combined additional financial implication on enhanced allowances is estimated at 30 thousand 748 crore rupees per annum.