New Delhi, Jun 28 (UNI) The Union Cabinet chaired by the Prime Minister Narendra Modi today approved the recommendations of the 7th CPC on allowances with some modifications. The revised rates of the allowances shall come into effect from 1st July, 2017 and shall affect more than 48 lakh central government employees. While approving the recommendations of the 7th CPC on 29th June, 2016, the Cabinet had decided to set up the Committee on Allowances (CoA) in view of substantial changes in the existing provisions and a number of representations received. The modifications are based on suggestions made by the CoA in its Report submitted to Finance Minister on 27th April, 2017 and the Empowered Committee of Secretaries set up to screen the recommendations of 7th CPC. As per the cabinet decision, Government has decided not to abolish 12 of the 53 allowances which were recommended to be abolished by the 7th CPC. The decision to retain these allowances has been taken keeping in view the specific functional requirements of Railways, Posts and Scientific Departments such as Space and Atomic Energy. It has also been decided that 3 of the 37 allowances recommended to be subsumed by the 7th CPC will continue as separate identities. This has been done on account of the unique nature of these allowances. The rates of these allowances have also been enhanced as per the formula adopted by the 7th CPC. This will benefit over one lakh employees belonging to specific categories in Railways, Posts, Defence and Scientific Departments. It has been decided that HRA shall not be less than Rs5400, Rs3600 and Rs1800 for X, Y and Z category of cities respectively. This floor rate has been calculated at 30 per cent, 20 per cent and 10 per cent of the minimum pay of Rs18000. This will benefit more than 7.5 lakh employees belonging to Levels 1 to 3. Keeping in view the current inflation trends, the Government has decided that these rates will be revised upwards when DA crosses 25 per cent and 50 per cent respectively. This will benefit all employees who do not reside in government accommodation and get HRA. On Siachen Allowance, recognizing the extreme nature of risk and hardship faced by defence personnel on continuous basis in Siachen, the Government has decided to further enhance the rates of Siachen Allowance which will now go up from the existing rate from Rs 14,000 to Rs 30,000 per month for Jawans & JCOs (Level 8 and below) and from Rs 21,000 to Rs 42,500 per month for Officers (Level 9 and above). With this enhancement, Siachen Allowance will become more than twice the existing rates. It will benefit all the soldiers and officers of Indian Army who are posted in Siachen. More UNI ADP SHK 2147