The 7th Pay Commission has brought good news for central government civilian pensioners, as they will receive a 25% hike in the Constant Attendant Allowance (CAA). This update comes as the dearness allowance (DA) has crossed 50% of the basic pay following a 4% increase in January this year.
With the DA reaching 50%, several allowances have automatically been revised by up to 25%. Now, the Ministry of Personnel, Public Grievances, and Pensions has confirmed an increase in the Constant Attendant Allowance for civilian pensioners.
The Department of Pension & Pensioners’ Welfare (DoPPW) issued an Office Memorandum stating that the rate of CAA for civilian pensioners will rise by 25% whenever the DA on revised pay in the pay matrix increases by 50%. This adjustment aims to support retirees who require constant assistance due to health concerns, reflecting the government’s commitment to their welfare.
Effective from January 1, 2024, the amount of CAA will increase from the current Rs 6,750 to Rs 8,438 per month, as requested by the DoPPW.
Who Are Central Government Civilian Pensioners?
Central government civilian pensioners are individuals who have retired from civil services under the central government and are entitled to receive a pension. To qualify, they must have served for at least 10 years. The pension amount is calculated as 50% of their last basic pay or average basic pay, whichever is higher.
The minimum pension is Rs 9,000 per month, while the maximum can be 50% of the highest pay in the Government of India. Pensions are paid until the pensioner’s death.
Allowances Impacted by DA Hike
Several allowances were impacted by the DA hike to 50%, including Tough Location Allowance, Conveyance Allowance, Special Allowance for Children of Women With Disabilities, Children Education Allowance, House Rent Allowance (HRA), Hotel Accommodation, Reimbursement of Traveling Charges within the city, Reimbursement of Food Charges, Dress Allowance, Split Duty Allowance, and Deputation (Duty) Allowance.
This update on the 7th Pay Commission highlights the government’s efforts to support its retirees, ensuring that they receive adequate financial assistance in their post-retirement years.
