Finance Minister of India, Arun Jaitley’s latest announcement came as a breath of relief for government employees and defense personnel. The center recently announced hikes amounting to Rs 30, 748 crores under seventh pay commission yesterday. This special bonanza includes HRA (house rent allowance) and other allowances offered to government officers and defense officers. This announcement will benefit 48 lakh employees and pensioners.

HRA for Employees: Finally a Decent Roof Over Head…

Earlier, the HRA offered to the employees, as approved by the finance ministry of India was, 8%, 16% and 24% of their basic pay. After implementing the seventh pay commission, the revised HRA rates would be 9%, 18%, and 27%, if the DA (dearness allowance crosses 25%). However, if it goes beyond the 50% mark, it would be 10%, 20%, and 30%.

For a government employee, the HRA constitutes of nearly 60% of his total salary. The new HRA rates will benefit around 7.5 lakh employees, who will finally have a decent roof over his head.


Other than raising the dearness allowance, the government has set the minimal HRA amount for the lowest grade of employees. As per Jaitley’s official statement, the HRA rates on minimal pay (which is Rs 18,000) will be—

  • Rs 1,800
  • Rs 3,600
  • Rs 5,400

Medical Benefits for Pensioners and Employees…

In a bid to ensure sound health for all, the government has increased the medical allowance for nurse and hospital staff. Earlier, the allowance was Rs 4,800 that has been increased to Rs 7,200 per month. Similarly, the government has raised the OT allowance from Rs 360 to Rs 540/month, patient care allowance from Rs 2070 to Rs 2100/month and hospital care allowance from Rs 5300 to Rs 4100 per month.

For the disabled folks, the constant attendance allowance (in the case of 100% disablement) is Rs 6,750. The amount has been doubled for the pensioners (Rs 1000) after the 7th pay commission implementation.

Things got Much Better for Defense Personnel employed at the Siachen Border…

The defense personnel posted at the Siachen border will get double money as “Siachen Allowance” (Rs 42500 for defense officers and Rs 30000 for soldiers). The revised allowances will be in effect from July 1.

The new allowances will put an additional burden worth Rs 30, 748.23 crores on the national exchequer. Nevertheless, it’ll help improve the living standards of several pensioners and government employees.


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