Govt approves 7th CPC allowances with modifications

The Union Cabinet has approved the recommendations of the 7th Central Pay Commission (CPC) on allowances with 34 modifications, making the revised rates effective from July 1, 2017. The decision benefits 34 lakh civilian employees and 14 lakh defence personnel. The 7th CPC reviewed 197 allowances, recommending the abolition of 53 and the merger of 37 with others. However, the government decided to retain 12 allowances due to specific functional requirements. Additionally, three of the 37 subsumed allowances will continue separately due to their unique nature. The modifications aim to rationalise the allowance structure while addressing functional needs.