The central government employees have finally got the good news which they have been waiting for over an year. Union Cabinet on Wednesday approved the recommendations of 7th Pay Commission on allowance. 

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Union Cabinet meet which was chaired by Prime Minister Narendra Modi approved the recommendations of the 7th Pay Commission with 34 modifications. The government said that the revised allowance will come into effect from July 1, 2017. This revision will affect more than 48 lakh central government employees. 

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Cabinet Committee on Economic Affairs said, "The modifications are based on suggestions made by the Committee of Allowances in its report submitted to Finance Minister on 27th April, 2017 and the Empowered Committee of Secretaries set up to screen the recommendations of 7th CPC."

The modifications approved by the Government in the recommendations of the 7th CPC on allowances will lead to a modest increase of Rs 1448.23 crore per annum over the projections made by the 7th CPC. 

The 7th CPC, in its report, had projected the additional financial implication on allowances at Rs 29,300 crore per annum. The combined additional financial implication on account of the 7th CPC recommendations along with the modifications approved by the Cabinet is estimated at Rs 30748.23 crore per annum.

Moreover, the government has also decided not to abolish 12 of the 53 allowances which were recommended to be abolished by the 7th CPC. The decision to retain these allowances has been taken keeping in view the specific functional requirements of Railways, Posts and Scientific Departments such as Space and Atomic Energy. 

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This floor rate has been calculated 30%, 20% and 10% of the minimum pay of Rs18000. This will benefit more than 7.5 lakh employees belonging to Levels 1 to 3.

7th CPC had also recommended that HRA rates will be revised upwards in two phases to 27%, 18% and 9% when DA crosses 50% and to 30%, 20% and 10% when DA crosses 100%. 

"Keeping in view the current inflation trends, the Government has decided that these rates will be revised upwards when DA crosses 25% and 50% respectively. This will benefit all employees who do not reside in government accommodation and get HRA," CCEA said.

Now, if you are a central government employee and thinking how much more you will get it, then here's how you can calculate.

CALCULATE 7th PAY COMMISSION

1. Enter your Basic Pay as on January 1, 2016 including grade pay.
2. Select you Pay Band
3. Select your Grade Pay
4. Select 'Yes' or 'No' whether you are eligible for non-practicing allowance
5. Click Calculate. 

Here's an example. For instance, your basic pay is Rs 18,000 as on January 1, 2016, this is how much you will get.