Finance Minister Arun Jaitley is addressing the media on 7th Pay Commission. Here are the highlights:

7th Pay Commission: The government had, in July last year, constituted a committee under Finance Secretary Ashok Lavasa to review the recommendations on allowances. The Union Cabinet will take a decision today.

 7th Pay Commission: Finance Minister Arun Jaitley at a press conference in New Delhi

Here are the highlights:

• For pensioners, the medical allowances have been doubled to Rs. 1,000, compared to Rs. 500 earlier. Constant attendance allowance on 100 per cent disablement increased from Rs. 4,500 to Rs. 6,750.
• The revised allowances are likely to cost the government an additional Rs. 30,748.23 crore per annum. 
• Siachen allowances have been increased from Rs. 14,000 per month to Rs. 30,000 for soldiers and for officers the same will be Rs. 42,500 for extreme risk and hardship from Rs. 21,000 earlier.
• GST Event Symbolises Consensus
• All recommendations will come with effect from July 1, 2017
• Cabinet has given in-principle approval for Air India disinvestment
• We will form panel to look into ways to divest Air India stake
• We are always working with an open mind. The Council has set up its own processes. It has always shown its openness.
• I can assure you every decision has been merit based. It has neither been partisan nor been dictated by any kind of pressure. 
• There have been 20 regulations within GST. All done with consensus. I hope every party, every MP, every state government will take part (in the launch).
• We spent so much time in building consensus, and we succeeded to build consensus.
• This government has successfully ensured that all decisions regarding GST are taken with consensus.

The Union Cabinet on Wednesday approved the recommendations of the 7th Pay Commission on Allowances after making 34 modifications. The revised rates will take effect from 1 July 2017. The revised allowances will benefit at least 47 lakh employees.
The increased allowance will impose an additional annual burden of Rs 30,748 crore on the exchequer. The modification, which is based on the recommendations of Committee on Allowances, will result in additional burden of Rs 1,448 crore over and above suggestions made by 7th Central Pay Commission.
Among the recommendations made by the 7th pay commission, house rent allowance will be at the rate of 27 per cent, 18 per cent and 8 per cent when the dearness allowance crossed 50 per cent and further increased 30 per cent, 20 per cent and 10 per cent when it crosses 100 per cent. Employee unions have demanded HRA at the rate of 30 per cent, 20 per cent and 10 per cent.
The government had last year accepted the recommendation of Justice AK Mathur-headed Seventh Pay Commission in respect of the hike in basic pay and pension. For allowances, the government had constituted a committee under Finance Secretary Ashok Lavasa to review the recommendations. This, following protests by government employees that the pay revision was not adequate. The panel submitted its report to the Department of Expenditure, which conducted the first round of review, following which it was presented before the Empowered Committee of Secretaries. The Committee then forwarded the report to the Cabinet. If the Cabinet does indeed take a decision today, government employees will see their July salary increase.
Key among the demands made by central government employees is a revision in the House Rent Allowance or HRA. As of now, the existing rates of HRA for Class X, Y and Z cities and towns are 30 per cent, 20 per cent and 10 per cent of an employee’s basic pay.