In India, the Central Government has approved the recommendations related to allowances by the Seventh Pay Commission. This will benefit about 47 lakh central employees. New allowances and pension will be applicable from 1 July 2017.

Union Finance Minister Arun Jaitley announced this in the press conference on Wednesday. New allowances and pension will have an additional expenditure of about 30 thousand crores on the government. Prime Minister Narendra Modi, who returned from a trip to the three countries, took this decision in the Cabinet meeting.

The Government has approved the recommendations of the Seventh Pay Commission with 34 revisions. He said, "The recommendations of the pay commission were in favour of the employees, accepting them and reforming them."

The Centre has decided to give 24 percent, 16 percent and 8 percent of the new basic pay as HRA. Based on the city, the percentage of HRA will be fixed. Since the minimum wage is Rs 18,000, on the basis of the city, there will be no HRA less than 5400, 3600 and 1800 rupees. This will benefit about 7.5 lakh employees.

However, central employees were demanding that 30 percent, 24 percent and 16 percent HRA be given.

Apart from this, the allowances which the cabinet has decided on, are as follows:

Siachen Alliance
According to the finance ministry, the Siachen allowance
has been increased from 14 thousand rupees per month to 30 thousand rupees per month for the army personnel. Whereas the allowance for army officers has been increased from Rs 21 thousand to 42 thousand 500 rupees every month.

For nurses and staff of ministry's hospitals
The central government has increased nursing allowance, now the nursing allowance has increased from Rs 4800 to Rs 7200 per month. Operation Theater Allowance has been raised from Rs. 360 per month to Rs. 540. Apart from this, the Patient Care Allowance has been increased from Rs 2070-2100 per month to Rs 4100-5300 per month.

For pensioners
The permanent medical allowance for pensioners have been increased from Rs. 500 per month to Rs.1000. Apart from this, the Constant Attendance Allowance has been increased from Rs. 4500 per month to Rs. 6750 on full disability.

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