The central government recently increased the Dearness Allowance (DA) for its employees by 3%, bringing the total DA to 53%. According to the 7th Pay Commission, When the dearness allowance reached 50%, the government increased some additional benefits. Additionally, this results in a higher take-home salary for central government employees.

The increase in DA led to a 25% hike in 13 key allowances, effective from January 1, 2024. In September, the government updated two new allowances – nursing and clothing allowances – for eligible employees. “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 Employees’ Provident Fund Organization (EPFO) circular in July 2024.

The Nursing Allowance is now available to all nurses working in hospitals or dispensaries, as announced by the Ministry of Health & Family Welfare on September 17, 2024. The government will increase the Nursing Allowance and Dress Allowance by 25%. This will be done every time when it raises the Dearness Allowance, linked to the revised pay scale, by 50%.

“All the Central Governments/UT Hospitals/Institutions and Centrally funded autonomous bodies like AIIMS, New Delhi, PGIMER, Chandigarh. JIPMER, Pondicherry etc. are requested to take necessary action in accordance with the instructions contained in this Ministry’s OM dated 31.08.2017,” the notice further read.

7th Pay Commission: More Details

Every 10 years, the government reviews and updates the pay commission to keep up with inflation and other changes. Then-Prime Minister Manmohan Singh set up the 7th Pay Commission in 2014. The government implemented the recommendations from 2016 onwards.