7th Pay Commission has recommended that more than fifty Allowances are to be abolished. It has also provided its recommendations relating certain important allowances such as Fixed Medical Allowance applicable to Pensioners to the effect that there is no need for revising those allowances.
7th Pay Commission had earlier assumed that DA from January 2016 as 125% for revision of pay and allowances of Central Government Employees – DA orders issued by Govt with effect from 1st January 2016
Serving (State/Central) Government servants, Semi Government/ Autonomous Bodies, Employees paid from the Consolidated Fund of India or through Grants-in-aid are treated as Official Members.
Ministry of Railways has issued Circular revising allowance which is paid in lieu of Running room facilities, Shunting Duty Allowance, Trip Allowance and Commercial duty Allowance by 25% with effect from 01.01.2011 consequent upon increase in the rate of DA to 51%.
Railway Board has advised Zonal Units to recover the Transport Allowance of Rs. 7000 plus DA paid to officers drawing Grade Pay of Rs.10000/- under NFU Scheme as they are not eligible for the same
Pay Commmision has studied all allowances with respect to the need for its continuation, how many employees are getting such allowance and quantum of the allowance
7th CPC refrain from the issue pertaining to payment of Running Allowance (Kilometerage Allowances and ALK). It feels that it is best left to the Railway Administration, since from time immemorial, the kilometerage entitlements/rates are decided through bi-lateral discussions between Railway Board and Federations.
Deputation is not DA indexed so far. 7th CPC has recommended to hike Deputation allowance by 2.25 times. The ceilings of this allowance will further rise by 25 percent each time DA increases by 50 percent.
Transport allowance rates recommended by 7th Pay commission are at higher side marginally while comparing the present rates and also DA payable on the same
Union Cabinet approved 6% increase in DA from July 2015 for Central Government Employees and Pensioners. Finance Ministry has issued OM dated 23rd September 2015, for revising Dearness Allowance of Central Government Employees to 119% from July 2015. Orders in respect of Central Government Pensioners will be issued by Department of Pension soon
Enhancement of the Fixed Monetary Compensation (FMC) admissible to Postmen staff – FMC for absentee duty almost doubled and FMC for holiday duty also revised
Transport Allowance hiked from 1st April 2015 to Central Government Employees in select cities on the basis of classification of Cities as per Census 2011. Cities where Central Government Employees are working and eligible for the higher Transport Allowance are listed in this article.