The Central government employees got two rounds of across the board pay hikes, courtesy increase in Dearness Allowance and other allowances, twice in the current calendar year of 2024. The DA of Central government employees was raised from 50% to 53% and it came into effect on July 1, 2024. Additionally, they became eligible for higher take-home salary when other allowances were revised upwards when DA touched 50% following the recommendations of the 7th Pay Commission.
When the DA touched 50%, more than a dozen allowances – actually 13 – got an upward revision of 25%.
Two more allowances were increased for Central government employees for whom they were pertinent. These allowances are nursing allowance and clothing allowance.
Cascading effect of DA reaching 50%
“Attention is drawn to the following orders issued by Department of Expenditure/DoPT in the past and request that consequent upon the increase of Dearness Allowance by 4% to 50% w.e.f. 01.01.2024, the payments of the following allowances wherever applicable may be made at enhanced rates of 25% over the existing rates w.e.f. 01.01.2024,” read a circular from EPFO (Employees’ Provident Fund Organisation).
Nursing allowance hike
As the name implies, all nurses whether working in dispensaries or in hospitals are entitled to nursing allowances. A memo dated September 17, 2024 issued by Ministry of Health & Family Welfare said, “the rate of Nursing Allowance will go up by 25% each time the Dearness allowance payable on revised pay scale rises 50%.” Central Governments/UT Hospitals/Institutions and Centrally funded autonomous Bodies such as AIIMS, New Delhi, PGIMER, Chandigarh, JIPMER, Pondicherry were directed to take necessary steps.
Dress allowance raise
The memo from Ministry of Health & Family Welfare, Office Memorandum also said that “the rate of Dress Allowance will go up by 25% each time the Dearness Allowance payable on revised pay scale rises 50%.” Accordingly, Central Governments/UT Hospitals/Institutions and Centrally funded autonomous bodies were directed to take action.
No plan to constitute 8th Pay Commission
In a response to a question in the Lok Sabha, the Union finance ministry has stated that there is no blueprint to constitute the Eighth Pay Commission as of now. The statement was made on said on December 3, 2024. Government employees have pointed out that they expected that the 8th Pay Commission recommendations would come into effect on and from January 1, 2026.
While the hike in Dearness Allowance by 3% was effected from July 1, 2024, the hike in other allowances has come into effect from January 1, 2024 since they were triggered when DA hike reached 50%. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
