Government will soon be able to implement long – term demand for military personnel.

The Ministry of Finance (MoF) has agreed to examine a long-standing demand by the army personnel to exempt ration money and the risk and burden of taxation in accordance with the recommendation of the 7th Pay Commission. Changes to existing regulations are likely to benefit from paramilitary jawans of the CRPF, BSF, Central Industrial Security Force (CISF) and Indo-Tibetan Border Police (ITBP) and Sashastra Seema Bal (SSB).

These changes can be announced by the Government in the next full 2019 Budget, tabled by the new government at the Center. In all, 9 lakh security staff will benefit from the move. In its report, the 7th Pay Commission stated that the allowance given to jawans as a free ration must be exempted from income tax.

Central government employee unions made several requests regarding the 7th Pay Commission recommendations, including increasing the basic pay rise fitting factor. While not all the requirements were met, the Center and state governments implemented several pay increases.

In addition, as part of the 7th Pay Commission’s recommendations, the MP government increased the pensioner dearness allowance (DA). From May, the revised DA will apply. After the 2019 Lok Sabha elections the government will take a definitive decision on the delays from January 2018 to April 2019.

DA is a cost of living adjustment allowance, calculated to compensate for the rise in prices resulting from inflation, as a fixed percentage of a person’s base salary or pension.

Under the 7th Pay Commission, the Ministry of Personnel, Public Grievances and Pensions approved recently an increase for highly skilled central government employees. The onetime incentive given to employees will result in a five-fold increase if they acquire a higher degree while serving in their own departments in accordance with the notification. Those with new higher education qualifications would be awarded a sum of Rs 2,000-Rs 10,000.

In March, the government of Uttarakhand also announced a 3% increase in the DA, which amounts to 12%. The decision would benefit more than 2.5 lakh public servants and pensioners. From 1 January 2019 the order will be retrospectively applicable. The state government also announced to waive off pending water bills estimated at Rs 70 crore of around 10,000 people rehabilitated at New Tehri due to the construction of the Tehri dam.

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