Status of Allowances which are recommended to be Abolished and Subsumed

Present Status of Allowances which are recommended to be Abolished and Subsumed

The 7th Pay Commission had recommended to abolish 53 Allowances and to subsume 37 Allowances [ Click to see the List of Abolished Allowances and Subsumed Allowances Recommended by 7th Pay Commission]

Status of Allowances

Now the Central Government has decided to to retain 12 of the 53 Allowances which were recommended to be abolished. And 3 of the 37 allowances [ to be subsumed] will continue as separate Allowances. Since these 15 Allowances are Departmental specific Allowances,  Government decided to Allow these Allowances to continue.

The cabinet Decision on Allowances which are recommended to be abolished and subsumed

Number of allowances recommended to be abolished and subsumed:

“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.”