Latest News

Central Govt Employees Allowances increased


➡️ Click here to join our Whatsapp Group

On March 7, 2024, the Central Government raised the dearness allowance (DA) and dearness relief (DR) of employees by 4 percent. As a result, the DA rate increased from 46 percent to 50 percent. This increase in DA had several other implications for Central Government employees.

Automatic Raise in Allowances

In addition to the hike in Dearness Allowance, the limit of a number of allowances for Central Government employees was automatically raised by 25 percent. This automatic increase was triggered by the hike in Dearness Relief, which was raised to 50 percent from January 1, 2024.

Clarification from the Ministry of Personnel, Public Grievances and Pensions

Following these changes, the Ministry of Personnel, Public Grievances and Pensions issued a clarification regarding the increase in certain allowances by 25 percent. The Ministry stated that, according to the rules, the limits of Children Education Allowance and Hostel Subsidy would be automatically raised by 25 percent each time the Dearness Allowance on the revised pay structure increased by 50 percent.

Queries Regarding Allowance Amounts

Despite the clarification, the Ministry has been receiving several queries from different sources regarding the amount of Children Education Allowance (CEA) and Hostel Subsidy payable to Central Government employees after the Dearness Allowance hike that raised DA to 50 percent from January 1, 2024.

Fixed Reimbursement Amounts for CEA and Hostel Subsidy

The Ministry has determined that the reimbursement amount for Children Education Allowance shall be fixed at Rs 2,812.50 per month. Similarly, the reimbursement amount for Hostel Subsidy shall be fixed at Rs 8,437.50 per month. It is important to note that these amounts are capped, regardless of the actual expenses incurred by the Government employee.

Special Reimbursement Amount for Divyang Children

For Divyang children of Government employees, the Ministry has set the Children Education Allowance reimbursement amount at double the normal rates. This means that Divyang children will receive Rs 5,625 per month, regardless of the actual expenses incurred by the Government employee in educating their Divyang child.

Revised Special Allowance for Child Care

The rates of Special Allowance for Child Care provided to women with disabilities have been revised to Rs 3,750 per month, subject to the conditions mentioned in the Department’s office memorandum.

Applicability and Arrears

The department has stated that these revisions are applicable from January 1, 2024. This means that arrears will be paid to Central Government employees to account for the period between January 1, 2024, and the implementation date of the revisions.

Leave a Reply

Your email address will not be published. Required fields are marked *

Home
Calculators
Menu
Search