DA hike impact: HRA to conveyance – 13 allowances for govt employees to rise by 25%; check list

A total of 13 allowances for central government employees will be revised upwards by up to 25%, as a consequence of the dearness allowance (DA) crossing 50% of the basic pay, as per a circular issued last week by the Employees Provident Fund Organisation (EPFO).

As recommended by the 7th Pay Commission, various allowances of central government employees are to be hiked once the DA crosses 50% of the basic wage.

Ahead of the general elections, the Centre had issued a notification in March to increase the DA of central government employees by 4%. This took their DA from 46% of the basic pay to 50%. The hike was to come into effect retrospectively, from January 1, 2024.

The EPFO, in a circular dated July 4, 2024, listed 13 allowances that will be revised by up to 25% with effect from January 1, 2024.

"Attention is drawn to the following orders issued by Department of Expenditure/DoPT in the past and request that consequent upon 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," the circular stated.

The exact amount by which each of the 13 allowances would be raised was not mentioned in the circular. Here's a list of the allowances that are set for upward revision:

• Tough location allowance
• Conveyance allowance
• Special allowance for child of women with disabilities
• Children education allowance
• House rent allowance (HRA)
• Reimbursement of travelling charges within one city
• Reimbursement of food charges
• Reimbursement for journey performed by own car/taxi, auto rickshaw, own scooter etc. at the place where no specific rate has been prescribed
• Rate of transportation
• Dress allowance
• Split duty allowance
• Deputation (duty) allowance

According to Shiv Gopal Mishra, National Secretary (Staff Side) of Joint Consultative Machinery – a recognised body of central government employees – the Centre should also revise the pay matrix as the DA has crossed 50% of the basic pay.