7th Pay Commission – Additional HRA, new travel allowance rates for central govt employees

| July 21, 2017

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After the Union Cabinet approved the recommendations related to allowance structure under the Seventh Central Pay Commission and officially notified them, orders are being brought out to implement these recommendations. The Ministry of Finance recently released several orders to implement the revised rates of several allowances.

Here’s a look at the allowances that were talked about in these recent orders:-

More HRA

Under implementation of awards under the 7th Pay Allowance,additional House Rent Allowance will be granted to central government employees posted in North-eastern states, Andaman and Nicobar Islands, Lakshadweep Islands and Ladakh and have left their families behind at their old duty stations. These orders will also be applicable to civilian employees paid from Defence Services Estimates.

The additional HRA will be paid from July 1, 2017 and will not be applicable to employees who have been transferred out of North-eastern states, Andaman and Nicobar Islands, Lakshadweep Islands and Ladakh before this date.

Ministries of Defence and Railways will release similar orders on their own for their respective employees to extend the benefits of the 7th Pay Commission.

Tough Location Allowance

The rates for Special Compensatory Allowancessubsumed under Tough Location Allowance were also notified. Revised by the President under implementation of recommendations of 7th Pay Commission regarding allowances, these new rates of Special Compensatory (Remote Locality) Allowance, Bad Climate Allowance, Tribal Area Allowance, and Sunderban Allowance will be effective from July 1, 2017.

Moreover, these rates will increase by 25 per cent whenever the Dearness Allowance goes up by 50 per cent. The statement by the government of India also listed the areas in various states where these new rates will be applicable.

Conveyance Allowance

Another statement by the Ministry of Finance stated that the President of India has also revised the rates of Conveyance Allowance under implementation of 7th Pay Commission recommendations. For central government employees travelling 201 km to 300 km every month by their own vehicle on official duty will be paid Rs 1680, whereas those covering the same distance by other modes of conveyance will be paid Rs 556.

For an average monthly distance between 301 km and 450 km the allowances have been pegged at Rs 2520 (own vehicle) and Rs 720 (by other modes), between 451 km and 600 km it will be Rs 2980 (own vehicle) and Rs 960 (by other modes).

Central government employees covering between 601 km and 800 km on official duty by their vehicles will receive Rs 3646 and Rs 1126 for travelling by other modes. If the distance exceeds 800 km, then the allowances granted will be Rs 4500 for using own vehicle and Rs 1276 if other modes of conveyance are used.

Similar to Tough Location Allowance, the Conveyance Allowance will also be increased by 25 per cent when Dearness Allowance exceeds 50 per cent.

Travelling Allowance

The new rates of Travelling Allowance revised by the President were also released by the Ministry of Finance recently. The new rates will be put into effect from July 1, 2017 and will apply to reimbursement claims made by central government employees in relation to their travels on or after this date.

The statement by the Finance Ministry stated that, “it may be noted that no additional funds will be provided on account of revision in TA/DA entitlements. It may therefore be ensured that permission to official travel is given judiciously and restricted only to absolutely essential official requirements.”

Deadline to rectify anomalies extended

Meanwhile, Department of Personnel and Training has extended the deadline to receive complaints and rectify pay-related anomalies related to the awards of Seventh Central Pay Commission. The new deadline will now be February 15, 2018.

This is the second time that the Centre has agreed to extend this deadline. Originally the deadline was August 15, 2016, which was pushed to November 15, 2016. After the Union Cabinet approved the recommendations of 7th Pay Commission regarding salaries on January 1, 2016, the Department of Personnel and Training had directed all central government departments to form committees that would look into pay-related anomalies arising out of the implementation of recommendations by the 7th Pay Commission.

Source:- Business Today

Category: News, Seventh Pay Commission

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