In an effort to benefit more than 50-lakh serving and retired Central government employees, the Union Cabinet on Wednesday approved the recommendations of the 7th Pay Commission.
The approval on allowances come nearly three months after the committee headed by Finance Secretary Ashok Lavasa submitted its report on revisions, following concerns raised by employee unions.
As per the rollout of the allowances of the 7th Pay Commission, central government employees would get a hike of 23.8 per cent. Last year, the government had only increased the basic component of the salaries, which raised their pay roughly by 14.3 per cent.
The hike in allowances will be rolled out along with the July salary. It was said earlier that the revised allowances would be rolled out from 18 July 2017 onwards.
Lavasa-led Committee had handed over its review report to the Finance Minister Arun Jaitley in April after consulting representations of various government departments.