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8th Pay Commission: Savings bank to secret allowance - full list of 101 allowances removed by 7th CPC
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7 min read | Updated on March 05, 2025, 21:14 IST
SUMMARY
8th Pay Commission formation is underway. A pay commission is not only about revising salaries. It also reviews various allowances and benefits provided to central government employees. In this process, the pay commission may reject old and redundant allowances or add a new one if it becomes necessary.
The 7th CPC rejected as many as 101 allowances. | Image source: Shutterstock
As the formation of the 8th Central Pay Commission gains momentum, all eyes are on expected salary hikes. However, a pay commission is not only about revising salaries. It also to review various allowances and benefits provided to central government employees. In this process, the pay commission may reject old and redundant allowances or add a new one if it becomes necessary.
For instance, the 7th pay commission recommended a salary hike for central government employees by a fitment factor of 2.57, increasing the minimum salary to ₹18,000 and maximum to ₹2,25,000. However, it examined 196 allowances, out of which only 95 allowances were approved for central government employees.
The 7th CPC rejected as many as 101 allowances. These allowances were either abolished or not included in the 7th CPC report or subsumed in any other allowances. Following is the list of rejected allowances by the 7th CPC.
List of allowances rejected by 7th Pay Commission
| Name of the Allowance | Recommendation |
|---|---|
| Accident Allowance | Not included in the report |
| Acting Allowance | Abolished. Eligible employees governed by “Additional Post Allowance” |
| Air Despatch Pay | Abolished |
| Air Steward Allowance | Abolished |
| Allowance in Lieu of Kilometreage (ALK) | Not included in the report |
| Allowance in Lieu of Running Room Facilities | Not included in the report |
| Assisting Cashier Allowance | Abolished |
| ASV Allowance | Abolished |
| Bad Climate Allowance | Abolished. Subsumed in Tough Location Allowance-III. Paid as per Cell R3H3 of Risk and Hardship Matrix |
| Breach of Rest Allowance | Not included in the report |
| Breakdown Allowance | Abolished |
| Camp Allowance | Abolished. Subsumed in Territorial Army Allowance |
| Caretaking Allowance | Abolished. Eligible employees governed by “Extra Work Allowance” |
| Cash Handling Allowance | Abolished |
| Clothing Allowance | Abolished. Subsumed in Dress Allowance |
| Coal Pilot Allowance | Abolished |
| Command Allowance | Abolished |
| Commando Allowance | Abolished |
| Commercial Allowance | Abolished |
| Compensation in Lieu of Quarters (CILQ) | Abolished. Eligible employees governed by provisions for Housing for PBORs |
| Condiment Allowance | Abolished |
| Court Allowance | Abolished |
| Cycle Allowance | Abolished |
| Desk Allowance | Abolished |
| Diet Allowance | Abolished |
| Dual Charge Allowance | Abolished. Eligible employees governed by “Additional Post Allowance” |
| Electricity Allowance | Abolished |
| Entertainment Allowance for Cabinet Secretary | Abolished |
| Entertainment Allowance in Indian Railways | Abolished |
| Extra Duty Allowance | Abolished. Eligible employees governed by “Extra Work Allowance” |
| Family Accommodation Allowance (FAA) | Abolished. Eligible employees governed by provisions for Housing for PBORs |
| Family Planning Allowance | Abolished |
| Fixed Monetary Compensation | Abolished. Eligible employees governed by “Additional Post Allowance” |
| Flag Station Allowance | Abolished. Eligible employees governed by “Extra Work Allowance” |
| Flight Charge Certificate Allowance | Abolished. Eligible employees governed by “Extra Work Allowance” |
| Flying Squad Allowance | Abolished |
| Funeral Allowance | Abolished |
| Ghat Allowance | Not included in the report |
| Haircutting Allowance | Abolished. Subsumed in Composite Personal Maintenance Allowance |
| Handicapped Allowance | Abolished |
| Headquarters Allowance | Abolished |
| Higher Proficiency Allowance | Abolished. Eligible employees to be governed by Language Award or Higher Qualification Incentive for Civilians |
| Holiday Compensatory Allowance | Abolished. Eligible employees to be governed by National Holiday Allowance |
| Hutting Allowance | Abolished |
| Initial Equipment Allowance | Abolished. Subsumed in the newly proposed Dress Allowance |
| Instructional Allowance | Abolished. Eligible employees to be governed by Training Allowance |
| Investigation Allowance | Abolished |
| Judge Advocate General Department Examination Award | Abolished. Eligible employees to be governed by Higher Qualification Incentive for Defence Personnel |
| Kilometreage Allowance (KMA) | Not included in the report |
| Kit Maintenance Allowance | Abolished. Subsumed in Dress Allowance |
| Language Reward and Allowance | Abolished |
| Launch Campaign Allowance | Abolished |
| Library Allowance | Abolished. Eligible employees governed by “Extra Work Allowance” |
| Metropolitan Allowance | Abolished |
| Night Patrolling Allowance | Abolished |
| Official Hospitality Grant in Defence forces | Abolished |
| Officiating Allowance | Not included in the report |
| Operation Theatre Allowance | Abolished |
| Organization Special Pay | Abolished |
| Out of Pocket Allowance | Abolished. Eligible employees governed by Daily Allowance on Foreign Travel |
| Outfit Allowance | Abolished. Subsumed in Dress Allowance |
| Outstation (Detention) Allowance | Not included in the report |
| Outstation (Relieving) Allowance | Not included in the report |
| Out-turn Allowance | Abolished |
| Overtime Allowance (OTA) | Abolished |
| Qualification Grant | Abolished. Eligible employees governed by Higher Qualification Incentive for Defence Personnel |
| Rajbhasha Allowance | Abolished. Eligible employees governed by “Extra Work Allowance” |
| Rajdhani Allowance | Abolished |
| Rent Free Accommodation | Abolished |
| Risk Allowance | Abolished |
| Robe Allowance | Abolished. Subsumed in Dress Allowance |
| Robe Maintenance Allowance | Abolished. Subsumed in Dress Allowance |
| Savings Bank Allowance | Abolished |
| Secret Allowance | Abolished |
| Shoe Allowance | Abolished. Subsumed in Dress Allowance |
| Shorthand Allowance | Abolished |
| Shunting Allowance | Not included in the report |
| Single in Lieu of Quarters (SNLQ) | Abolished. Eligible employees governed by provisions for Housing for PBORs |
| Soap Toilet Allowance | Abolished. Subsumed in Composite Personal Maintenance Allowance |
| Space Technology Allowance | Abolished |
| Special Appointment Allowance | Abolished. Eligible employees governed by “Extra Work Allowance” |
| Special Compensatory (Hill Area) Allowance | Abolished |
| Special Compensatory (Remote Locality) Allowance | Abolished. Eligible employees governed by Tough Location Allowance-I, II or III |
| Special DOT Pay | Abolished |
| Special NCRB Pay | Abolished |
| Special Scientists’ Pay | Abolished |
| Spectacle Allowance | Abolished |
| Study Allowance | Abolished |
| Sumptuary Allowance in Training Establishments | Abolished |
| Sumptuary Allowance to Judicial Officers in Supreme Court Registry | Abolished |
| Sunderban Allowance | Abolished. Subsumed in Tough Location Allowance-III. Paid as per Cell R3H3 of Risk and Hardship Matrix |
| TA Bounty | Abolished. Subsumed in Territorial Army Allowance |
| Technical Allowance | Abolished. Eligible employees governed by Higher Qualification Incentive for Defence Personnel |
| Training Stipend | Abolished |
| Treasury Allowance | Abolished |
| Tribal Area Allowance | Abolished. Subsumed in Tough Location Allowance-III. Paid as per Cell R3H3 of Risk and Hardship Matrix |
| Trip Allowance | Not included in the report |
| Uniform Allowance | Abolished. Subsumed in Dress Allowance |
| Vigilance Allowance | Abolished |
| Waiting Duty Allowance | Not included in the report |
| Washing Allowance | Abolished. Subsumed in Dress Allowance |
Source: 7th CPC
Latest update on 8th CPC
It is expected that the terms of reference of the 8th pay commission may be finalised before April 2025. By then, the government is also expected to finalise the members and the chairperson of the 8th pay commission. The new pay panel may take a year to finalise its report after consultation with various stakeholders, including representatives of central government employees.
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