7th CPC Allowances: A Guide for Central Government Employees

The Indian government created the Pay Commission in order to provide recommendations for central government employees' pay. Since India's independence, seven pay commissions have been set up to review and recommend adjustments to the pay scales for all Indian government employees, including civil and military. The 7th Pay Commission was accepted by then-Prime Minister Manmohan Singh and was to be implemented by January 2016, according to former Finance Minister P. Chidambaram. Nevertheless, a number of obstacles prevented the Seventh Pay Commission from being put into effect by the recommended implementation date.

---

Table of Content

Implementation of the 7th Pay Commission 

Recommendations for 7th CPC Allowances

List of 7th CPC Allowances

Conclusion

Most Asked Questions

---

Implementation of the 7th Pay Commission 

With certain changes, the 7th CPC's allowance recommendations were accepted by the Union Cabinet, which is led by Prime Minister Shri Narendra Modi. More than 48 lakh central government employees were impacted by the updated allowance rates, which take effect on July 1, 2017. In light of significant modifications to the current regulations and several suggestions received, the Cabinet decided to establish the Committee on Allowances (CoA) upon approving the proposals of the 7th CPC on June 29, 2016. The changes are based on recommendations from the Empowered Committee of Secretaries, which was established to review the 7th CPC's recommendations, and the CoA's Report, which was sent to the Finance Minister on April 27, 2017.

Recommendations for 7th CPC Allowances

The 7th CPC examined 197 allowances in total using a three-pronged approach: determining whether each allowance should be continued, deciding whether the group of people covered by the allowance is appropriate, and rationalising the allowances by grouping them together for similar purposes. The 7th CPC recommended that 37 allowances be incorporated into an already-existing or newly proposed allowance and 53 allowances be eliminated based on the analysis along these lines. The 7th CPC suggested raising the Dearness Allowance (DA) rates to match inflation for the majority of the allowances that were kept. As a result, completely DA-indexed benefits like the Transport Allowance received no increases. Allowances partially indexed to DA were increased by a factor of 1.5, while those not indexed to DA were increased by a factor of 2.25. A factor of 0.8 was used to justify the amount of allowances paid as a percentage of pay.

To administrate the allowances associated with risk and suffering, a new paradigm has emerged. The Risk and Hardship Matrix (R&H Matrix) is a table that contains the various allowances, their categories, and subcategories related to civilian employees, CAPF, and defence personnel. Nine cells in the matrix represent different levels of risk and adversity, and the top cell, designated RH-Max, includes Siachen Allowance. For each cell of the R&H Matrix, two slab rates will be used in place of multiple rates that apply to individual permits.

List of 7th CPC Allowances

Sl. No.	Allowance	Recommendation
1	Accident Allowance	Allowance not mentioned in the report
2	Acting Allowance	Removed as a separate allowance.  Eligible employees to be governed by the proposed “Additional Post Allowance.”
3	Aeronautical Allowance	Retained Increased by 50%.
4	Air Dispatch Pay	Abolished/ Removed.
5	Air Steward Allowance	Abolished/ Removed.
6	Air Worthiness Certificate Allowance	Retained Increased by 50%.
7	Allowance in Lieu of Kilometreage (ALK)	Allowance not mentioned in the report.
8	Allowance in Lieu of Running Room Facilities	Allowance not mentioned in the report.
9	Annual Allowance	Retained.  Increased by 50%.  Given to some more categories.
10	Antarctica Allowance	Retained.  Rationalized.  To be paid as per Cell RH-Max of the proposed Risk and Hardship Matrix.
11	Assisting Cashier Allowance	Abolished/ Removed.
12	ASV Allowance	Abolished/ Removed.
13	Bad Climate Allowance	Not a separate allowance now.  Part of Tough Location Allowance-III.  To be paid as per Cell R3H3 of the proposed Risk and Hardship Matrix.
14	Bhutan Compensatory Allowance	Status Quo to be maintained that is same as before
15	Boiler Watch Keeping Allowance	Retained.  Rationalized.  To be paid as per Cell R3H1 of the proposed Risk and Hardship Matrix.
16	Book Allowance Retained.	Status Quo to be maintained that is Retained.
17	Breach of Rest Allowance	Not mentioned in the report.
18	Breakdown Allowance	Abolished/ Removed.
19	Briefcase Allowance	Status Quo to be maintained that is same as before
20	Camp Allowance	Not a separate allowance now. Subsumed in the proposed Territorial Army Allowance.
21	Canteen Allowance	Retained. Increased by 50%.
22	Caretaking Allowance	Not a separate allowance now.  Qualified employees to be governed by the proposed “Extra Work Allowance”
23	Cash Handling Allowance	Abolished/ Removed.
24	Children Education Allowance (CEA)	Everything is same as before except Procedure of payment which is simplified.
25	CI Ops Allowance	Retained.  Rationalized.
26	Classification Allowance	Retained.  Increased by 50%.
27	Clothing Allowance	Not a separate allowance now.  Subsumed in the proposed Dress Allowance.
28	Coal Pilot Allowance	Abolished/ Removed.
29	COBRA Allowance	Retained.  Rationalized.  Allowance to be paid as per Cell R1H1 of the projected Risk and Hardship Matrix.
30	Command Allowance	Abolished/ Removed.
31	Commando Allowance	Abolished/ Removed.
32	Commercial Allowance	Abolished/ Removed.
33	Compensation in Lieu of Quarters (CILQ)	Not a separate allowance now.  Qualified employees to be governed by the proposed provisions for Housing for PBORs.
34	Compensatory (Construction or Survey) Allowance	Retained.  Rationalized. Allowance to be paid as per Cell R3H2 of the projected Risk and Hardship Matrix.
35	Composite Personal Maintenance Allowance (CPMA)	Retained.  Rationalized.  Increased by 50%.  Extended to some more categories.
36	Condiment Allowance	Abolished/ Removed.
37	Constant Attendance Allowance	Retained.  Increased by 50%.
38	Conveyance Allowance	Status Quo to be maintained that is same as before
39	Cooking Allowance	Retained.  Rationalized.  To be paid as per Cell R3H3 of the proposed Risk and Hardship Matrix.
40	Cost of Living Allowance	Status Quo to be maintained that is same as before
41	Court Allowance	Abolished/ Removed.
42	Cycle Allowance	Abolished/ Removed.
43	Daily Allowance	Retained. Rationalized.
44	Daily Allowance on Foreign Travel	Status Quo to be maintained that is same as before
45	Dearness Allowance (DA)	Status Quo to be maintained that is same as before
46	Deputation (Duty) Allowance for Civilians	Retained.  Ceilings Increased by 50%.
47	Deputation (Duty) Allowance for Defense Personnel	Retained.  Ceilings Increased by 50%.
48	Desk Allowance	Abolished/Removed.
49	Detachment Allowance	Retained.  Rationalized.  Increased by 50%.
50	Diet Allowance	Abolished/Removed.
51	Diving Allowance, Dip Money and Attendant Allowance	Retained.  Increased by 50%.
52	Dual Charge Allowance	Not a separate allowance now.  Eligible employees to be governed by the proposed “Additional Post Allowance”.
53	Educational Concession	Retained.  Rationalized.  Extended to some more categories.
54	Electricity Allowance	Abolished/Removed.
55	Entertainment Allowance	Abolished/ Removed for Cabinet Secretary.
56	Entertainment Allowance	Removed/ Not in Indian Railways.
57	Extra Duty Allowance	Not a separate allowance now.  Eligible employees to be governed by the proposed “Extra Work Allowance”.
58	Family Accommodation Allowance (FAA)	Not a separate allowance now.  Proposed provisions for Housing for PBORs to be govern eligible employees.
59	Family HRA Allowance	Status Quo to be maintained that is Retained.
60	Family Planning Allowance	Abolished/ Removed.
61	Field Area Allowance	Retained.  Rationalized.
62	Fixed Medical Allowance (FMA)	Status Quo to be maintained that is Retained.
63	Fixed Monetary Compensation	Not a separate allowance now. Eligible employees to be governed by the proposed “Additional Post Allowance”.
64	Flag Station Allowance	Not a separate allowance now.  Eligible employees to be governed by the proposed “Extra Work Allowance”.
65	Flight Charge Certificate Allowance	Not a separate allowance now.  Eligible employees to be governed by the proposed “Extra Work Allowance”.
66	Flying Allowance	Retained. Rationalized.  To be paid as per Cell R1H1 of the newly projected Risk and Hardship Matrix.
67	Flying Squad Allowance	Abolished/Removed.
68	Free Fall Jump Instructor Allowance	Retained.  Rationalized.  To be paid as per Cell R2H2 of the projected Risk and Hardship Matrix.
69	Funeral Allowance	Abolished/Removed.
70	Ghat Allowance	Allowance is not mentioned in the report.
71	Good Service	Good Conduct-Badge Pay Retained.  Increased by a factor of 2.25.
72	Haircutting Allowance	Not a separate allowance now.  Submitted in Composite Personal Maintenance Allowance.
73	Handicapped Allowance	Abolished/Removed.
74	Hard Area Allowance	Retained.  Rationalized by a factor of 0.8.
75	Hard lying Money	Retained. Rationalized.  Complete Rate to be paid as per Cell R3H3 of the projected Risk and Hardship Matrix.
76	Headquarters Allowance	Abolished/Removed.
77	Health and Malaria Allowance	Retained.  Rationalized.  To be paid as per Cell R3H3 of the proposed Risk and Hardship Matrix.
78	High Altitude Allowance	Retained. Rationalized.
79	Higher Proficiency Allowance	Not a separate allowance now.  Language Award or Higher Qualification Incentive for Civilians to govern eligible employees.
80	Higher Qualification Incentive for Civilians	Retained.  Rationalized.
81	Holiday Compensatory Allowance	Not a separate allowance now. Qualified employees to be governed by National Holiday Allowance.
82	Holiday Monetary Compensation	Retained.  Rationalized.
83	Hospital Patient Care Allowance	Patient Care Allowance Retained.  Rationalized.  To be paid as per Cell R1H3 of the proposed Risk and Hardship Matrix.
84	House Rent Allowance (HRA)	Retained. Rationalized by a factor of 0.8.
85	Hutting Allowance	Abolished/Removed.
86	Hydrographic Survey Allowance	Retained.  Rationalized.
87	Initial Equipment Allowance	Not a separate allowance now.  Subsumed in the newly proposed Dress Allowance.
88	Instructional Allowance	Not a separate allowance now. Qualified employees to be governed by Training Allowance.
89	Internet Allowance	Retained.  Rationalized.
90	Investigation Allowance	Removed.
91	Island Special Duty Allowance	Retained.  Rationalized by a factor of 0.8.
92	Judge Advocate General Department Examination Award	Not a separate allowance now.  Qualified employees to be governed by the newly proposed Higher Qualification Incentive for Defense Personnel.
93	Kilometreage Allowance(KMA)	Not included in the report.
94	Kit Maintenance Allowance	Not a separate allowance now.  Subsumed in the proposed Dress Allowance.
95	Language Allowance	Retained.  Increased by 50%.
96	Language Award	Retained.  Increased by 50%.
97	Language Reward and Allowance	Abolished/Removed.
98	Launch Campaign Allowance	Abolished/Removed.
99	Leave Travel Concession (LTC)	Retained. Rationalized.
100	Library Allowance	Not a separate allowance now.  Qualified employees to be governed by the proposed “Extra Work Allowance”.
101	MARCOS and Chariot Allowance	Retained.  Rationalized.  To be paid as per Cell R1H1 of the projected Risk and Hardship Matrix.
102	Medal Allowance	Retained.
103	Messing Allowance	It is same as before for “floating staff” under Fishery Survey of India.  Increased by 50%.  Removed/ Abolished for Nursing Staff.
104	Metropolitan Allowance	Abolished/Removed.
105	Mileage Allowance	Same as before for journeys by road.
106	Mobile Phone Allowance	Retained.  Rationalized.
107	Monetary Allowance attached to Gallantry Awards	Status Quo to be maintained that is Retained.
108	National Holiday Allowance	Retained.  Increased by 50%.
109	Newspaper Allowance	Retained. Rationalized.
110	Night Duty Allowance	Retained.  Rationalized.
111	Night Patrolling Allowance	Abolished/Removed.
112	Non-Practicing Allowance	(NPA) Retained.  Rationalized by a factor of 0.8.
113	Nuclear Research Plant Support Allowance	Retained.  Increased by 50%.
114	Nursing Allowance	Retained.  Rationalized.
115	Official Hospitality Grant in Defense forces	Abolished/Removed.
116	Officiating Allowance	Allowance is not mentioned in the report.
117	Operation Theatre Allowance	Abolished/Removed.
118	Orderly Allowance	Status Quo to be maintained that is Retained.
119	Organization Special Pay	Abolished/Removed.
120	Out of Pocket Allowance	Not as a separate allowance now.  Qualified employees to be governed by Daily Allowance on Foreign Travel.
121	Outfit Allowance	Not as a separate allowance now.  Subsumed in the newly proposed Dress Allowance.
122	Outstation (Detention) Allowance	Allowance is not mentioned in the report.
123	Outstation (Relieving) Allowance	Allowance is not mentioned in the report.
124	Out-turn Allowance	Abolished/Removed.
125	Overtime Allowance (OTA)	Abolished/Removed.
126	Para Allowances	Retained.  Rationalized.  To be paid as per Cell R2H2 of the proposed Risk and Hardship Matrix.
127	Para Jump Instructor Allowance	Retained. Rationalized.  To be paid as per Cell R2H2 of the proposed Risk and Hardship Matrix.
128	Parliament Assistant Allowance	Retained.  Increased by 50%.
129	PCO Allowance	Retained.  Rationalized.
130	Post Graduate Allowance	Retained.  Increased by 50%.
131	Professional Update Allowance	Retained.  Increased by 50%. Extended to some more categories.
132	Project Allowance	Retained.  Rationalized.  To be paid as per Cell R3H2 of the proposed Risk and Hardship Matrix.
133	Qualification Allowance	Retained.  Increased by 50%.  Extended to some more categories.
134	Qualification Grant	Removed as a separate allowance now.  Qualified employees to be governed by the newly proposed Higher Qualification Incentive for Defense Personnel.
135	Qualification Pay	Retained. Increased by a factor of 2.25.
136	Rajbhasha Allowance	Removed as a separate allowance now. Qualified employees to be governed by the newly proposed “Extra Work Allowance”
137	Rajdhani Allowance	Abolished/Removed.
138	Ration Money Allowance	Retained.  Rationalized.
139	Refreshment Allowance	Retained.  Increased by a factor of 2.25.
140	Rent Free Accommodation	Abolished/Removed.
141	Reward for Meritorious Service	Retained.  Increased by a factor of 2.25.
142	Risk Allowance	Abolished/Removed.
143	Robe Allowance	Removed as a separate allowance now.  Subsumed in the newly proposed Dress Allowance.
144	Robe Maintenance Allowance	Removed as a separate allowance now.  Subsumed in the newly proposed Dress Allowance.
145	Savings Bank Allowance	Abolished/Removed.
146	Sea Going Allowance	Retained.  Rationalized.  To be paid as per Cell R2H2 of the proposed Risk and Hardship Matrix.
147	Secret Allowance	Abolished/Removed.
148	Shoe Allowance	Removed as a separate allowance now.  Subsumed in the proposed Dress Allowance.
149	Shorthand Allowance	Abolished/Removed.
150	Shunting Allowance	It is not mentioned in the report.
151	Siachen Allowance	Retained. Rationalized.  To be paid as per Cell RH-Max of the newly proposed Risk and Hardship Matrix.
152	Single in Lieu of Quarters (SNLQ)	Removed as a separate allowance now. Qualified employees to be governed by the proposed provisions for Housing for PBORs.
153	Soap Toilet Allowance	Removed as a separate allowance now. Subsumed in Composite Personal Maintenance Allowance.
154	Space Technology Allowance	Abolished/Removed.
155	Special Allowance for Child Care for Women with Disabilities	Retained.  Increased by 100%.
156	Special Allowance to Chief Safety Officers	Retained.  Rationalized by a factor of 0.8.
157	Special Appointment Allowance	Removed as a separate allowance now.  Qualified employees to be governed by the newly proposed “Extra Work Allowance”.
158	Special Compensatory (Hill Area) Allowance	Abolished/Removed.
159	Special Compensatory (Remote Locality) Allowance	Removed as a separate allowance now.  Qualified employees to be governed by the newly proposed Tough Location Allowance-I, II or III.
160	Special DOT Pay	Abolished/Removed.
161	Special Duty Allowance	Retained.  Rationalized by a factor of 0.8.
162	Special Forces Allowance	Retained.  Rationalized.  To be paid as per Cell R1H1 of the newly proposed Risk and Hardship Matrix.
163	Special Incident Investigation Security Allowance	Retained.  Rationalized.
164	Special LC Gate Allowance	Retained.  Rationalized.  To be paid as per Cell R3H3 of the newly proposed Risk and Hardship Matrix.
165	Special NCRB Pay	Abolished/Removed.
166	Special Running Staff Allowance	Retained. Extended to some more categories.
167	Special Scientists’ Pay	Abolished/Removed.
168	Specialist Allowance	Retained.  Increased by 50%.
169	Spectacle Allowance	Abolished/Removed.
170	Split Duty Allowance	Retained.  Increased by 50%.
171	Study Allowance	Abolished/Removed.
172	Submarine Allowance	Retained.  Rationalized.  To be paid as per Cell R1H1 of the newly proposed Risk and Hardship Matrix.
173	Submarine Duty Allowance	Retained.  Rationalized.  To be paid as per Cell R3H1 of the newly proposed Risk and Hardship Matrix, on a pro-rata basis.
174	Submarine Technical Allowance	Retained.  Rationalized.  To be paid as per Cell R3H3 of the newly proposed Risk and Hardship Matrix. Extended to some more categories.
175	Subsistence Allowance	Status Quo to be maintained that is Retained.
176	Sumptuary Allowance in Training Establishments	Abolished/Removed.
177	Sumptuary Allowance to Judicial Officers in Supreme Court Registry	Abolished/Removed.
178	Sunderban Allowance	Removed as a separate allowance now.  Subsumed in Tough Location Allowance-III.  To be paid as per Cell R3H3 of the newly proposed Risk and Hardship Matrix.
179	TA Bounty	Removed as a separate allowance now.  Subsumed in the newly proposed Territorial Army Allowance.
180	TA for Retiring Employees	Retained.  Rationalized.
181	TA on Transfer	Retained.  Rationalized.
182	Technical Allowance	Removed as a separate allowance now. Qualified employees to be governed by the newly proposed Higher Qualification Incentive for Defense Personnel.
183	Tenure Allowance	Retained.  Ceilings Increased by 50%.
184	Test Pilot and Flight Test Engineer Allowance	Retained.  Rationalized.  To be paid as per Cell R1H3 of the newly proposed Risk and Hardship Matrix.
185	Training Allowance	Retained.  Rationalized by a factor of 0.8. Extended to some more categories.
186	Training Stipend	Abolished/Removed.
187	Transport Allowance (TPTA)	Retained.  Rationalized.
188	Travelling Allowance	Retained.  Rationalized.
189	Treasury Allowance	Abolished/Removed.
190	Tribal Area Allowance	Removed as a separate allowance now.  Subsumed in Tough Location Allowance-III.  To be paid as per Cell R3H3 of the newly proposed Risk and Hardship Matrix.
191	Trip Allowance	It is not mentioned in the report.
192	Uniform Allowance	Removed as a separate allowance now.  Subsumed in the newly proposed Dress Allowance.
193	Unit Certificate and Charge Certificate Allowance	Retained.  Increased by 50%.
194	Vigilance Allowance	Abolished/Removed.
195	Waiting Duty Allowance	It is not mentioned in the report.
196	Washing Allowance	Removed as a separate allowance now.  Allowance is subsumed in the newly proposed Dress Allowance.
197	New Allowances for Railways: New Allowance for Firefighting Staff:	(i) Special Train Controller’s Allowance, and(ii) Risk and Hardship Allowance for Track Maintainers(iii) Risk and Hardship Allowance for Firefighting staff of Central Government & UTs

The government-approved changes to the 7th CPC's allowance recommendations will result in a slight annual rise of Rs.1448.23 crore over the 7th CPC's forecasts. In its report, the 7th CPC estimated that the increased financial impact on allowances would be Rs.29,300 crore annually. The combined additional budgetary impact of the Cabinet-approved amendments and the 7th CPC recommendations is projected to be Rs.30748.23 crore annually. 

Conclusion

The overall number of allowances has been rationalised from 197 to 128 while raising the rate of allowances that affect central government employees, particularly those in the defence, CAPF, and Coast Guard, as well as the railway, postal, and nursing departments. As a result, the government has demonstrated a great deal of economic restraint while simultaneously addressing the legitimate concerns of the workers and addressing some of the administrative necessities that called for the changes.

FAQ

Q1. Who decides the pay structure of the central government employees?

The compensation structure of the central government employees is determined by the 7th pay commission and the stakeholders.

Q2. What are the allowances given to central employees?

Employees of the central government are entitled to a number of allowances, such as travel, house rent, and dearness allowances. 

Q3. What is the SCA allowance?

All government employees and local body employees who work in offices located in the State's Scheduled areas, as specified in the Annexures appended to this order, are eligible to receive the Special Compensatory Allowance approved above.

Q4. What is the conveyance allowance for the 7th CPC?

Employees of the Central Government are exempt from the conveyance allowance up to Rs 1,600 per month, or Rs 19,200 annually. Employees who travel for work-related reasons are eligible for this reimbursement.

Q5. What is the minimum pay as per the 7th CPC?

Employees of the central government did see a significant raise in their minimum pay scale. The monthly payment increased from Rs. 7,000 to Rs. 18,000 per month. The minimum pension amount increased significantly after this pay increase.

Q6. What is the non-practicing allowance as per the 7th CPC?

According to the 7th Central Pay Commission (CPC), doctors receive 20% of their base pay as Non-Practicing Allowance (NPA). Physicians receive this stipend in place of private practice. 

Q7. What is risk allowance as per the 7th CPC?

The 7th CPC recommended a Risk and Hardship Matrix to regulate allowances related to Risk and Hardship (R & H).

Q8. What is the hill allowance in the 7th pay commission?

The Special Compensatory (Hill Area) Allowance was eliminated on July 1, 2017, as a result of the government's decision to implement the Seventh Central Pay Commission's recommendations.

Q9. What is the deputation allowance for the 7th CPC?

There were no distinct financial ramifications for the Deputation (Duty) Allowance reported by the 7th Central Pay Commission (CPC). 

Q10. What is the Marcos allowance?

The Marcos Allowance Marine Commandos are given a Marcos allowance of Rs. 25,000 in recognition of their special function.