The Union Cabinet on Wednesday approved recommendations of the Seventh Pay Commission (CPC) related to allowances, with 34 modifications - in a decision that will benefit 34 lakh civilian employees and 14 lakh defence personnel.
The decision, taken at the meeting of cabinet presided over by Prime Minister Narendra Modi, will result in additional financial implication of Rs 30,748.23 crore per annum to the government.
Briefing reporters after the cabinet meeting, Finance Minister Arun Jaitley said that House Rent Allowance will be paid at 24 per cent, 16 per cent and eight per cent for X,Y, Z cities respectively.
He said HRA will not less than Rs 5,400, Rs 3,600 and Rs 1,800 for X,Y, Z cities calculated at 30, 20 and 10 per cent of minimum pay of Rs 18,000.
"The CPC recommended revision of HRA when DA reaches 50 per cent and 100 per cent. The government decided to revise rates when DA crosses 25 per cent and 50 per cent respectively," he said.
HRA is admissible to central government employees depending upon classification of the city/town where they are posted. Cities and towns are classified 'X',‘Y'& ‘Z' based on their population.
Jaitley said that fixed medical allowance for pensioners has been increased from Rs 500 to Rs 1,000 per month. The constant attendance allowance on 100 per cent disablement has been increased from Rs 4,500 per month to Rs 6,750 per month.The Minister said the government has increased rate of nursing allowance from Rs 4,800 to Rs 7,200 per month.
Operation Theatre allowance has increased from Rs 360 per month and Rs 540 per month. The hospital patient care allowance has been increased from Rs 2,070-Rs 2,100 to Rs 4,100-Rs 5,300 per month.