7th Pay Commission: Updated Rates for DA and 6 Other Allowances Unveiled

The Department of Personnel and Training (DoPT) recently announced changes to various allowances for central government employees following the increase in Dearness Allowance (DA). This revision impacts a significant portion of the workforce, with nearly 49.18 lakh employees and 67.95 lakh pensioners set to benefit.

Increased Dearness Allowance (DA) and Relief (DR) 

• The most notable change is the 4% hike in DA, bringing it to 50% of basic salary. This adjustment applies to both current employees and retired pensioners, effective from January 1, 2024.

• Additionally, the Union Cabinet approved an extra dearness relief (DR) of 4%, raising it from the previous 46%.

Revised Child Education Allowance (CEA)

• The Child Education Allowance has undergone modification. While previously set at 50%, it's now fixed at Rs 6,750 per month, applicable to a maximum of two children.

• Importantly, children with disabilities receive double the standard rate, emphasizing support for their educational needs. The DoPT notification clarifies this: "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." Special provisions are also outlined for these cases where attending school might not be feasible.

Allowances for Specific Circumstances

• Risk Allowance: This allowance remains in place for employees undertaking hazardous duties. It's not considered part of "pay" for calculation purposes.

• Night Duty Allowance (NDA): The NDA has been adjusted based on the 7th Pay Commission's revised norms. Night duty, defined as the period from 10 pm to 6 am, qualifies employees for NDA when their basic salary reaches Rs 43,600. The formula for calculating the hourly NDA rate is [(Basic Pay + Dearness Allowance)/200]. Both components are determined by 7th Pay Commission rates, and the final NDA amount depends on the individual's specific basic pay during night duty hours.

• Overtime Allowance: Departments are mandated to maintain a register for 'Operational Staff' to monitor overtime work without increasing the allowance rates. Biometric attendance systems can be used to track overtime hours.

• Special Allowance for Female Employees with Disabilities: A new allowance of Rs 3,000 per month is provided to support female employees with disabilities who have young children. This financial assistance applies from the child's birth until they reach two years old.

• Special Allowance for Parliament Assistants: Allowances for those dedicated to parliamentary duties during sessions have seen a 50% increase. The revised rates for Assistants and UDCs are Rs 2,250 and Rs 1,800, respectively. These allowances are granted at full rates for months with at least 15 days of Parliament sessions and half rates for shorter sessions. It's important to note that overtime allowance is not applicable during parliamentary sessions.

Conclusion:

With the unveiling of updated rates for dearness allowance and several other crucial allowances, central government employees can anticipate improved financial benefits and support. These revisions underscore the government's commitment to enhancing employee welfare and ensuring equitable compensation structures aligned with modern standards and employee needs.