8th Pay Commission Allowances: As buzz around the 8th Pay Commission intensifies, especially among central government employees, it’s essential to revisit the landmark decisions taken under the 7th Pay Commission that continue to influence salary structures and allowances today.
The Union Cabinet had approved the 7th CPC recommendations with 34 key modifications, significantly benefiting nearly 48 lakh central government employees. These changes were implemented effective July 1, 2017, based on suggestions from the Committee on Allowances (CoA). Here’s a look at the 12 major highlights from the 7th Pay Commission Allowances that set the stage for what employees might expect in the upcoming 8th Pay Commission.
12 Major Highlights of 7th Pay Commission Allowance Approval
1. Allowance Rationalization
- Out of 53 allowances proposed to be scrapped, 12 were retained for departments like Railways, Posts, and Atomic Energy.
- 3 of 37 subsumed allowances were continued independently due to their unique nature, impacting over 1 lakh specialized personnel.
2. House Rent Allowance (HRA)
- Revised to 24% (X), 16% (Y), and 8% (Z) category cities.
- Minimum HRA floor rates set at ₹5400, ₹3600, and ₹1800 to protect employees in lower pay bands.
- HRA to increase when DA crosses 25% and 50%, unlike the earlier 50% and 100% DA rule.
3. Siachen Allowance
- Enhanced to ₹30,000 for Jawans & JCOs and ₹42,500 for Officers, acknowledging the extreme risk and hardship.
4. Dress Allowance
- Consolidated multiple allowances into one, ranging from ₹5,000 to ₹20,000 annually, with monthly allowances for nurses and higher rates for SPG personnel.
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5. Tough Location Allowance (TLA)
- Replaces remote and tribal area allowances.
- Rates between ₹1,000 to ₹5,300/month, with employees having the option to choose between old and new benefits when combined with Special Duty Allowance (SDA).
6. Allowances for All Central Employees
- Children Education Allowance: Increased to ₹2,250/month per child (max 2).
- Hostel Subsidy: Raised to ₹6,750/month.
- Child Care Allowance (for women with disabilities): Doubled to ₹3,000/month.
- Higher Qualification Incentive: Now ranges from ₹10,000 to ₹30,000.
7. Defence & Uniformed Services
- Ration Money Allowance continued for officers.
- Technical Allowance, High Altitude, Field Area, Flying, and COBRA Allowances all significantly increased.
- New rates governed by Risk and Hardship Matrix (R&H Matrix) with up to ₹25,000/month in extreme postings.
- Other upgraded allowances: Sea Going, Commando, MARCOS, Para Jump Instructor, SPG, Territorial Army, etc.
8. Indian Railways
- Additional Allowance hiked up to ₹2,250/month.
- New Special Train Controller Allowance of ₹5,000/month introduced.
9. Nursing & Hospital Staff
- Nursing Allowance: ₹7,200/month.
- Operation Theatre Allowance: ₹540/month.
- Patient Care Allowance: Raised to up to ₹5,300/month and now extended to ministerial hospital staff too.
10. Pensioners’ Benefits
- Fixed Medical Allowance (FMA): Doubled to ₹1,000/month.
- Constant Attendance Allowance: Increased to ₹6,750/month for 100% disability pensioners.
11. Scientific Departments
- Launch Campaign & Space Tech Allowances: Raised to ₹11,250/year.
- Antarctica Allowance: Continued on daily basis—₹1,500 (Summer) and ₹2,000 (Winter).
12. Department of Posts
- Cycle Allowance retained for Postmen and Trackmen, doubled to ₹180/month, benefiting over 22,200 employees.
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What’s Expected in the 8th Pay Commission?
While official announcements on the 8th Central Pay Commission are still awaited, experts believe similar revisions and enhancements in allowances are likely, especially in light of inflation and the evolving needs of employees in challenging roles.
FAQs on 8th & 7th Pay Commission Allowances
When will the 8th Pay Commission be implemented?
The 8th CPC is expected to be announced by 2026, though there is no official confirmation yet.
What is the purpose of the Risk & Hardship Matrix?
It standardizes allowance rates based on the degree of risk and hardship involved in duty posts, ensuring fair compensation.
Will HRA increase automatically when DA rises?
Yes, HRA rates increase once DA crosses 25% and 50%, as per the revised rule under the 7th CPC.
Are pensioners covered under Pay Commission allowances?
Yes, allowances like Fixed Medical Allowance and Constant Attendance Allowance apply to eligible central government pensioners.