Increase in allowances by 25% as a result of DA reached 100%

Increase in allowances by 25% as a result of DA reached 100%

As per the recommendations of Sixth Pay Commission, Government included a clause that whenever Dearness Allowance applicable to Central Government employees goes up by 50%, the fallowing allowances would be automatically increased by 25%.

The allowances such as Children Education Allowance, Travelling Allowance, Conveyance Allowance, Cash handling allowance, Risk Allowance, Bad Climate Allowance, Hill Area Allowance, Remote Locality Allowance, Tribal Area Allowances etc should be increased by 25% when the rate of DA reaches 50% level. We are getting repeated queries from readers whether any Separate orders will be issued by Government for increase in Allowance by 25% which are linked with increase in DA, since Dearness Allowance has gone up by 50% for the second time now.

We are of the opinion that there is no need for Separate orders for increasing these Allowances by 25% as Office Memorandums / Orders relating to these Allowances have the clause “whenever Dearness Allowance applicable to Central Government employees goes up by 50%, these allowances would be automatically increased by 25%”

Clarifications if any required in this regard by any govt departments, necessary clarificatory orders will be issued by DOPT

The following Table provides the quantum of increase in Allowances linked with increase in DA

Increase in allowances by 25%