7th Pay Commission: Two Key Allowances Increased By 25% For These Employees As DA Hits 53%

This milestone triggers automatic revisions to specific allowances as mandated by government rules, ensuring that employees' expenses are adjusted to match inflation and rising living costs

7th Pay Commission: The Dearness Allowance (DA) for central government employees has increased to 53 per cent of the basic salary following the July 2024 revision. This milestone triggers automatic revisions to specific allowances as mandated by government rules, ensuring that employees' expenses are adjusted to match inflation and rising living costs.

In January 2024, the government raised the DA and Dearness Relief (DR) by 4 per cent, bringing it to 50 per cent of the basic salary. This hike resulted in a 25 per cent increase in 13 key allowances. Recently, the Ministry of Health and Family Welfare (MoH&FW) announced similar revisions for two more allowances: the dress allowance and the nursing allowance.

Key Changes in Allowances

The MoH&FW confirmed a 25 per cent hike in the dress allowance and nursing allowance for eligible employees, in accordance with rules triggered when DA surpasses the 50 per cent mark. These updates aim to support employees, particularly healthcare workers, by addressing additional costs incurred due to inflation.

According to the Office Memorandum titled "Implementation of 25 per cent Increase in Dress Allowance consequent upon Dearness Allowance rises by 50 per cent," the dress allowance for central government employees has been revised upward. Similarly, a separate memorandum confirmed the 25 per cent increase in nursing allowance, benefiting nurses in central government hospitals and autonomous institutions under MoH&FW, such as AIIMS New Delhi, PGIMER Chandigarh, and JIPMER Pondicherry.

Implementation Guidelines

The government has directed all relevant institutions, including central government hospitals, Union Territory (UT) hospitals, and centrally funded autonomous bodies, to promptly implement these revisions. Authorities are required to notify affected employees and ensure the timely disbursal of the revised allowances, adhering to guidelines outlined in an earlier circular issued in August 2017.

This revision highlights the government's commitment to supporting its workforce amid evolving economic challenges. Employees are urged to verify updates with their respective organisations for seamless implementation of the changes.