Dearness allowance, other payments: Revised rates for central government employees

The Department of Personnel and Training (DoPT) has recently notified the revised allowances available to central government employees. In March 2024, the dearness allowance (DA) for central government employees has recently been increased by 4 per cent to 50 per cent. Besides this, the Union Cabinet also cleared additional dearness relief (DR) of 4 per cent from 46 per cent earlier.

All these allowances were reviewed under the 7th Pay Commission reviewed that were extended to central government employees. The allowances applicable to Central Government Employees that have been revised are as follows: 

Dearness allowance

Dearness Allowance or DA is the cost-of-living adjustment allowance that the Central government offers its current and retired members of the public sector. Last month, dearness allowance (DA) for central government employees was hiked 4 per cent to 50 per cent. Dearness relief (DR) for central government pensioners has also seen a 4 per cent hike, reaching 50 per cent. These adjustments are effective from January 1, 2024. The increased dearness allowance is set to benefit nearly 49.18 lakh central government employees and 67.95 lakh pensioners. 

Child education allowance

The allowance for central government employees has been revised upwards to 25 per cent of the original allowance which was previously set at 50 per cent. The Child Education Allowance or Hostel Subsidy, however, is restricted to a maximum of two children with an amount cap of Rs 6,750 per month as the subsidy rate. In situations where a central government employee has a child with disabilities, their Child Education Allowance receives special consideration and is adjusted to twice the standard rate.

"The reimbursement of CEA for Divyang Children of Government servant shall be payable at double the normal rate of CEA i.e. Rs. 4500/- per month. In a case where Divyang Child is not able to attend school, the reimbursement of CEA for availing education / special education at residence, shall be made at double the normal rates of CEA subject to production of payment receipted by teacher/instructor etc., and self-certification by the Central Government servant for availing education of their child at his/her residence," the notification said.

Risk Allowance

This allowance is provided to central government employees engaged in hazardous duties or whose work may negatively impact their health over time. Risk allowance is not considered as “pay” for any purpose, said DoPT to ensure clarity in categorisation within the compensation structure.

Night Duty Allowance

As per the 7th Pay Commission revised norms, an adjustment has been made to the Night Duty Allowance (NDA). It is pertinent to acknowledge that night duty is defined as the timeframe stretching from 10 pm to 6 am. An employee becomes eligible for NDA when they attain a basic monthly salary threshold of Rs 43,600. 

The computation of the hourly NDA rate transpires through use of this formula: [(Basic Pay + Dearness Allowance)/200]. In this formula, both Basic Pay and Dearness Allowance are derived from their current rates per determination by the 7th Central Pay Commission. The calculation for each individual's NDA amount relies upon the specific Basic Pay earned by that employee on any given night duty performance day.

Overtime Allowance
Departments and Ministries have been delegated the duty of assembling a register for personnel classified as 'Operational Staff'; this process should not involve any increase in Overtime Allowance rates. The incorporation of Overtime Allowance could be linked with biometric attendance monitoring systems, with an aim to streamline procedures while ensuring transparency in scheduling duties beyond standard working hours.

Special allowance

For providing extra benefits to female employees with disabilities, particularly those with young children and children who have disabilities, a decision has been made to provide a special allowance. Under this arrangement revised under the 7th Pay Commission, women with disabilities will receive Rs 3000 per month. This allowance will be disbursed from the birth of the child until the child reaches two years of age.

Special allowance for Parliament Assistants

Special allowance paid to individuals fully engaged in Parliament duties during its sessions has been increased by 50 per cent. The previous rates of Rs 1500 and Rs 1200 for Assistants and UDCs, respectively. It has now been raised to Rs 2,250 and Rs 1,800.

This allowance will be granted at full rates for each calendar month in which Parliament convenes for at least 15 days. However, for months with shorter sessions, the allowance will be half the prescribed rates. Further, No over time allowance (OTA) shall be paid to Parliament Assistants for the calendar months in which the Parliament is in session.