7th Pay Commission: Allowances for Central Government employees rise by 25% after Dearness Allowance hiked to 50% — Check full list of benefits, payable amount, arrear date, calculation

Dearness Allowance Hike, Children Education Allowance (CEA), Hostel Subsidy, CEA for Divyang children of Government employees, Special Child Care to women with disabilities, 7th Pay Commission: After the Central Government raised the dearness allowance (DA) and dearness relief (DR) of employees by 4 per cent — taking DA rate from 46 per cent to 50 per cent on March 7, 2024, it set several other wheels into motion as well. 

Alongwith the Dearness Alowance hike, the limit of a number of allowances for Central Government employees was automatically raised by 25 per cent after the Dearness Relief (DR) was hiked to 50 per cent from January 1, 2024.

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Following this, the Ministry of Personnel, Public Grievances and Pensions has issued clarification regarding the increase in certain allowances by 25 per cent after hike in Dearness Allowances from January 1, 2024. 

The Ministry has stated that, as per the rules, "the limits of Children Education Allowance and Hostel Subsidy would be automatically raised by 25 per cent every time the Dearness Allowance on the revised pay structure goes up by 50 per cent." 

However, the Ministry added that it has been receiving several queries from various quarters with regards to the amount of Children Education Allowance (CEA) and Hostel Subsidy admissible that is payable to the Central Government employees after Dearness Allowance hike which raised DA to 50 per cent from January 1, 2024.

So, in order to make it clear, the Ministry has stated that — 

Children Education Allowance and Hostel Subsidy 

The amount for Children Education Allowance reimbursement shall be Rs 2,812.50 per month (fixed).

And the amount for Hostel Subsidy shall be Rs 8,437.50 per month (fixed).

Both these amounts are capped, irrespective of the actual expenses incurred by the Government employee.

Children Education Allowance (CEA) reimbursement amount for Divyang children of Government employees

The Ministry has fixed the Children Education Allowance (CEA) reimbursement amount for Divyang children of Government employees at double the normal rates — Rs 5,625 per month. This is also fixed, irrespective of actual expenses incurred by the Government employee on educating their Divyang child.

Special Allowance for Child Care to women with disabilities

The rates of Special Allowance for Child Care to women with disabilities has been revised to Rs 3,750 per month subject to other conditions mentioned in this Department's office memorandum.

Arrear payment

The department has also informed that these revisions are applicable with effect from January 1, 2024, meaning that arrears would be paid. 

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