7th Pay Commission news: Good news for central government employees and pensioners! Six key allowances have been revised by the Centre.
As per the Office Memorandum (OM) dated April 2, 2024, the Department of Personnel and Training (DoPT) has released instructions on a range of allowances available to central government employees.
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Central government employees receive various allowances to compensate for housing, transportation, education, healthcare and travel expenses, among others.
In line with its 2016 evaluation and recommendations, the 7th Pay Commission reviewed all benefits provided to central government employees, as well as those for railway workers, civilian defence workers, and defence personnel.
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Here are the six allowances revised by the Centre: Children Education Allowance, Risk Allowance, Night Duty Allowance (NDA), Over Time Allowance (OTA), Special Allowance Payable to Parliament Assistants, and Special Allowance for Child Care for Women with Disabilities.
Children Education Allowance
Children Education Allowance (CEA) has several important features: it can be claimed for the two eldest surviving children, with a hostel subsidy amounting to Rs 6,750 per month. Divyang children of government servants are eligible for double the normal rate of CEA, at Rs 4,500 per month.
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The CEA rate increases by 25% whenever the Dearness Allowance (DA) on the revised pay structure rises by 50%. This allowance applies to children studying from three classes before class one to 12th standard.
Risk Allowance
Risk Allowance has undergone revisions following the government’s decision based on the recommendations of the 7th CPC. This allowance is provided to central government employees engaged in hazardous duties or whose work may negatively impact their health over time. Importantly, the Risk Allowance is not considered as “Pay” for any purpose, ensuring clarity regarding its categorization within the compensation structure.
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Night Duty Allowance
Guidelines have been issued regarding Night Duty Allowance (NDA). Night duty is defined as duty performed between 10 PM and 6 AM hours, with a uniform weightage of 10 minutes given for every hour of night duty. The ceiling of basic pay for entitlement of NDA has been set at Rs 43,600 per month.
Over Time Allowance
In line with the recommendations of the 7th CPC accepted by the government, certain decisions have been made regarding OTA.
Ministries/Departments are tasked with preparing a list of staff falling under the category of ‘Operational Staff’, with no upward revision in the rates of Overtime Allowance. The grant of OTA may be linked to biometric attendance, aiming to streamline the process and ensure accountability in overtime work arrangements.
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Special Allowance Payable to Parliament Assistants
Special Allowance payable to Parliament Assistants has been enhanced by the government’s decision on the recommendations of the 7th CPC.
The rates of Special Allowance for those wholly engaged in Parliament work during Parliament sessions have been increased by 50% from the existing levels. This allowance will be granted at full rates for every calendar month in which the Parliament is in session for at least 15 days, while for months with shorter periods, it will be admissible at half the prescribed rates for the full month.
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Special Allowance for Child Care for Women with Disabilities
To provide additional support to women employees with disabilities, particularly those with young children or children with disabilities, a Special Allowance for childcare has been introduced.
Women with disabilities will receive Rs 3,000 per month as a Special Allowance for child care, starting from the birth of the child until the child turns two years old.
The above limit will be increased by 25% each time the Dearness Allowance on the revised pay structure rises by 50%. This allowance aims to alleviate the financial burden faced by women with disabilities in caring for their young children.