7th Pay Commission News and updates 1 July 2017

7th Pay Commission News and updates 1 July 2017. here We Provides latest News and updates Which related to 7th Pay Commission. See All Details are Given below. 7th Pay Commission: Here’s how HRA, allowances will be paid from 1 July.

7th Pay Commission News and updates 1 July 2017

The Cabinet today approved the recommendation of the 7th pay commission on allowances including HRA or House Rent Allowance with 34 modifications which will be applicable with effect from July 1, 2017.
The 7th pay commission examined 197 allowances and recommended abolition of 53 allowances and subsuming 37 in others.

The hypothetical example of calculating an employee’s salary as per 7th CPC is illustrated below:

A. Basic pay of an employee as on 1st January 2016 is Rs 20,000
B. Multiply basic pay by 2.57 fitment factor = Rs 20,000 x 2.57 = Rs. 51,400
C. Addition of TA, HRA, medical Allowances as applicable and according to the revised rates of allowances approved by the Government etc to the amount Rs 51,400
D. New Pay = (Basic pay (as on 1st Jan 2016) x 2.57)+ All Allowances as per to the revised rates by the Government

Recommendations in respect of some important allowances paid to all employees:

  • Rate of Children Education Allowance (CEA) has been increased from Rs1500 per month / child (max. 2) to Rs2,250 per month / child (max.2). Hostel Subsidy will also go up from Rs4,500 per month to Rs6,750 per month.
  • Existing rates of Special Allowance for Child Care for Women with Disabilities has been doubled from Rs1,500 per month to Rs3,000 per month.
  • Higher Qualification Incentive for Civilians has been increased from Rs2,000 – Rs10,000 (Grant) to Rs10,000 – Rs30,000 (Grant).

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