6TH PAY COMMISSION -- ALLOWANCES

The government has increased the transport allowance. In Group A+/A category cities transport allowance for lowest employee will be Rs 600 while for other cities it will be Rs 400.

The central government employees were fearful that the government may accept reducing gazetted holidays to just three as suggested by the pay panel. Luckily for the central government employees the central government has turned down the proposal.

It is probably because of the anticipated backlash from 5.5 central government employees that government turned downed the proposal.

But government has significantly improved over the original suggestions of the sixth pay panel.

The final government notification says that rate of annual increment will be 3 percent instead of 2.5% as originally recommended by the pay commission.

The rate of variable increment for high achievers in PB-3 will be 4% instead of 3.5% recommended by the commission.

The government has removed campus restriction for grant of transport allowance. Consequently employees living in campuses will also be eligible for transport allowance. Further transport allowance for the employees at the lowest levels will be increased to Rs 600 from existing Rs 400 in A-1/A class cities and Rs 400 from existing Rs 300 in other towns.