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Monday, 3 July 2017
Saturday, 1 July 2017
Friday, 30 June 2017
Thursday, 29 June 2017
Cabinet approves 7CPC Recomendations
Cabinet approves recommendations of
the 7th CPC on allowances
The Union Cabinet chaired by the
Prime Minister Shri Narendra Modi approved the recommendations of the 7th CPC
on allowances with some modifications. The revised rates of the allowances
shall come into effect from 1st July, 2017 and shall
affect more than 48 lakh central government employees.
While approving the recommendations
of the 7th CPC on 29th June, 2016, the Cabinet
had decided to set up the Committee on Allowances (CoA) in view of substantial
changes in the existing provisions and a number of representations received.
The modifications are based on suggestions made by the CoA in its Report
submitted to Finance Minister on 27th April, 2017 and the
Empowered Committee of Secretaries set up to screen the recommendations of 7th CPC.
7th CPC recommendations on Allowances
The 7th CPC had
adopted a three-pronged approach in examining a total of 197 allowances which
involved an assessment of the need for continuation of each allowance,
appropriateness of the set of people covered by the allowance and
rationalisation which involved clubbing of allowances with similar objectives.
Based on the examination on these lines, the 7th CPC
recommended that 53 allowances be abolished and 37 be subsumed in an existing
or a newly proposed allowance.
For most of the allowances that were
retained,the 7th CPC recommended a raise commensurate with
inflation as reflected in the rates of Dearness Allowance (DA). Accordingly,
fully DA-indexed allowances such as Transport Allowance were not given any
raise. Allowances not indexed to DA were raised by a factor of 2.25 and the
partially indexed ones by a factor of 1.5. The quantum of allowances paid as a
percentage of pay was rationalised by a factor of 0.8.
A new paradigm has been evolved to administer the allowances linked to risk and hardship. The myriad allowances, their categories and sub–categories pertaining to civilians employees, CAPF and defence personnel have been fitted into a table called the Risk and Hardship Matrix (R&H Matrix). The Matrix has nine cells denoting varying degrees of risk and hardship with one extra cell at the top named as RH - Max to include Siachen Allowance. Multiple rates applicable to individual allowances will be replaced by two slab rates for every cell of the R&H Matrix.
A new paradigm has been evolved to administer the allowances linked to risk and hardship. The myriad allowances, their categories and sub–categories pertaining to civilians employees, CAPF and defence personnel have been fitted into a table called the Risk and Hardship Matrix (R&H Matrix). The Matrix has nine cells denoting varying degrees of risk and hardship with one extra cell at the top named as RH - Max to include Siachen Allowance. Multiple rates applicable to individual allowances will be replaced by two slab rates for every cell of the R&H Matrix.
Modifications approved by the Cabinet
The modifications approved today were
finalised by the E-CoS based on the recommendations of the CoA. The CoA had
undertaken extensive stakeholder consultations before finalising its
recommendations. It had interacted with Joint Consultative Machinery (Staff
side) and representatives from various staff associations. Most of the
modifications are on account of continuing requirement of some of the existing
arrangements, administrative exigencies and to further the rationalization of
the allowances structure.
Financial Implications
The modifications approved by the
Government in the recommendations of the 7th CPC on allowances will lead to a
modest increase of ₹1448.23 crore per annum over the projections made by
the 7th CPC. The 7th CPC, in its Report, had projected the additional financial
implication on allowances at ₹29,300 crore per annum. The combined
additional financial implication on account of the 7th CPC recommendations
along with the modifications approved by the Cabinet is estimated
at ₹30748.23 crore per annum.
Wednesday, 28 June 2017
Wednesday, 21 June 2017
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