No.A-27012/1/2014-Estt. (Allowance)
Government of India
Ministry of Personnel, Public Grievances and Pension
Department of Personnel & Training
Block-IV, Old JNU Campus
New Delhi, 28th April, 2014.
OFFICE MEMORANDUM
Subject:Clarification on increase in certain allowances by further 25% as a result of enhancement of Dearness Allowances w.e.f. 1.1.2014
The undersigned is directed to refer to para 1(j) of this Department’s OM. No.12011/03/2008-Estt. (Allowance) dated 2.9.2008. This provides that the limits of Children Education Allowance would be automatically raised by 25% every time the Dearness Allowance on the revised pay structure goes up by 50%. References are being received from various quarters with regard to the amount of Children Education Allowance admissible consequent upon enhancement of Dearness Allowance payable to Central Government employees @ 100% w.e.f. 1 January, 2014 announced vide Ministry of Finance, Department of Expenditure O.M. No.1/l/2014-E-1I (B) dated 27th March, 2014.
2. In accordance with the above, the following shall be the revised limits:
a) Theannual ceiling limit for reimbursement of Children Education Allowance shall be Rs.18,000/- per child. Accordingly, the quarterly claim could be more than Rs.4500/- in one quarter. The Hostel Subsidy shall be Rs.4500/- per month per child;
b) The rates of Special Allowance for Child Care to women with disabilities stands revised to Rs. 1500/- per month; and
c) The annual ceiling for reimbursement of Children Education Allowance for disabled children of Government employees shall be treated as revised to Rs.36,000/- per annum per child and the rates of Hostel Subsidy for disabled children of Government employees shall be treated as revised to Rs.9000/- per child per month.
3. These revisions are applicable with effect from 1st January, 2014.
4. These revisions shall be subject to other terms and conditions mentioned in this Department’s O.M. No.12011/03/2008-Estt (Allowance) dated 2.9.2008, O.M. No.12011/04/2008 dated 11.9.2008 and 12011/07(i)12011-Estt.(AL) dated 21.2.2012.
sd/
(MukulRatra)
Director
100% D.A from January 2014 – Some Allowances and Advances Rise by 25%
The Fifth Central Pay Commission had recommended uniform neutralization of DA at 100% to employees at all levels and increase in DA calculation too, according to the 12 monthly average of AICPIN for Industrial Workers (1982=100) as on 1st January 1996, of 306.33.
The Linking Factor of 303.33 has now changed to 115.76. This was calculated as 4.63 in the 4th CPC.
It was due to this change that the Dearness Allowance has increased in recent years. The 6th Pay Commission had promptly calculated it and said that the true impact of price rise and inflation would only then be known.
It was also mentioned in the recommendations made by the 6th CPC that each time the Dearness Allowance touched 50%, certain Allowances and Advances should also be raised by 25%.
It is of common knowledge that according to these recommendations, when D.A touched 50% on 01.01.2011, DOPT issued orders to increase it by 25%.
Since the DA is calculated on the basis of price rise and inflation, this 25% raise was given in order to make it uniformly applicable to all the other Allowances and Advances. The Allowances and Advances mentioned in this are the Children’s Education Allowance and Hostel Subsidy and Festival Advance.
As of now, the Central Government employee is entitled to claim 15,000 per annum per child under the Children’s Education Allowance and Hostel Subsidy. An increase of 25% would mean that the amount would rise to Rs. 18,000 per year. Similarly, there are chances that the Festival Advance would increase to Rs. 4500. These could be confirmed only after the DOPT makes its official announcements.
The list of allowance and advances are given as existing and revised rates...
S.No. / Name of the Allowances & Advances / Existing(As on 1.11.2011) / Expected
(As on 1.1.2014)
1. / Children Education Assistance & Reimbursement of Tuition Fee / Rs.15,000
(Per Year - Per Child) / Rs.18,000
(Per Year - Per Child)
2. / Advances for purchase of Bicycle Advance, Warm clothing Advance,
Festival Advance, Natural Calamity Advance / Rs.3,750 / Rs.4,500
3. / Special Compensatory Hill Area Allowance / Rs.750 / Rs.600 / Rs.900 / Rs.720
4. / Special Compensatory Scheduled / Tribal Area Allowance / Rs.500 / Rs.300 / Rs.600 / Rs.450
5. / Project Allowance / Rs.1,875 / Rs.1250 / Rs2,250 / Rs.1,500
6. / Speical Compensatory (Remote Locality) Allowance / Rs.3,250 / Rs.2,625/ Rs.1,875 / Rs.500 / Rs.3,900 / Rs.3,125/ Rs.2,250 / Rs.600
7. / Cycle Maintenance Allowance / Rs.75 (Per month) / Rs.90 (Per month)
8. / Mileage for road journey all components of daily allowance on tour / Rs.625 / Rs.375 / Rs.250 / Rs.190 / Rs.125 / Rs.750 / Rs.450 / Rs.300 / Rs.225 / Rs.150
9. / Rates of Fixed Conveyance Allowance under SR-25 (Motor Car) / Rs.1,400 / Rs.2,100 / Rs.2,590 / Rs.3,040 / Rs.3,750 / Rs.1,680 / Rs.2,520 / Rs.3,105 / Rs.3,645 / Rs.4,500
10. / Rates of Fixed Conveyance Allowance under SR-25 (Other modes) / Rs.470 / Rs.600 / Rs.800 / Rs.940 / Rs.1,070 / Rs.560 / Rs.720 / Rs.960 / Rs.1130 / Rs.1,280
11. / Washing Allowance / Rs.75 / Rs.90
12. / Split Duty Allowance / Rs.250 / Rs.300
13. / Spl. Allowance for Child Care for Women with Disabilities and
Education Allowance for disabled children / Rs.1,250 per month / Rs.1,500 per month
14. / Cash Handling Allowance / Rs.750 / Rs.625 / Rs.500 / Rs.375 / Rs.190 / Rs.900 / Rs.750 / Rs.600 / Rs.450 / Rs.230
15. / Risk Allowance / 12.3.2009 / Orders Expected
16. / Postgraduate Allowance / Rs.1,250 / Rs.750 / Rs.1,500 / Rs.900
17. / Desk Allowance / Rs.750 / Rs.900
18. / Bad Climate Allowance / Rs.500 / Rs.300 / Rs.600 / Rs.360