7th Pay Commission: The Dearness Allowance (DA) for central government employees currently stands at 53% of the basic salary after the July 2024 revision. The rule says if the DA breaches the 50% of the basic pay mark, certain allowances get automatically revised. This rule ensures that employees’ additional expenses are accounted for amid inflation and cost-of-living adjustments.
In January 2024, the Centre hiked the DA and DR of employees and pensioners by 4% to 50% of the basic salary, as a result 13 key allowances were revised upwards by 25%. Recently, two more allowances – dress allowance and nursing allowance – have been revised for eligible employees.
The Ministry of Health and Family Welfare (MoH&FW) recently announced a 25% hike in dress allowance and nursing allowance for eligible employees. This was in line with the government’s rule to revise specific allowances whenever DA crosses the 50% threshold.
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The recent notifications emphasise that all relevant institutions, including central government and Union Territory hospitals, as well as centrally funded autonomous bodies like AIIMS New Delhi, PGIMER Chandigarh, and JIPMER Pondicherry, must act swiftly to implement the revised allowances.
Details of allowance revisions:
According to the Office Memorandum titled “Implementation of 25% increase in Dress Allowance consequent upon Dearness Allowance rises by 50%”, the dress allowance has been revised upwards by 25%.
Similarly, the OM on nursing allowance outlines the same adjustment. Employees entitled to this allowance will see their pay reflect the 25% increase, following the rise in DA to 50%. The memorandum underscores that this revision aims to support nurses working in central government hospitals and autonomous institutions under MoH&FW.
The memorandums direct all relevant institutions and bodies to implement the revised rates promptly and in adherence to the guidelines provided in the August 2017 circular. Institutions have been urged to notify affected employees and ensure timely disbursal of the updated allowances.
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