dearness allowances (DA) by 3% to 53% for central government employees. The new DA hike has been in effect from July 1, 2024 onwards. Central government employees received higher take-home pay after the government raised a number of additional benefits when the dearness allowance reached 50%.
The 7th Pay Commission suggested raising several allowances when the dearness allowance reaches 50%. The hike in DA led to a 25% increase in 13 important allowances from January 1, 2024 onwards. In September, two additional allowances — the nursing allowance and the clothing allowance, were revised for eligible employees. As stated in a July 4, 2024, circular issued by the Employees' Provident Fund Organization (EPFO), «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.”
According to the Ministry of Health & Family Welfare, Office Memorandum on September 17, 2024, “The contents of the said OM. inter alia, states that the rate of Dress Allowance will go up by 25% each time the Dearness Allowance payable on revised pay scale rises 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