Allowances- Merge if DA/DR crosses 25% with Basic Pay and Pension : Memorandum to 8th CPC by Staff Side of NC-JCM

Allowances- Merge if DA/DR crosses 25% with Basic Pay and Pension : Memorandum to 8th Central Pay Commission by Staff Side of NC- JCM

(No. NC-JCM-2026/8th CPC dated 14-04-2026)

JCM
STAFF SIDE OF NATIONAL COUNCIL – JCM
for
Central Government Employees
MEMORANDUM 
Submitted to
8th Central Pay Commission
on

Allowances

Q 2. What concerns / views do you face related to Allowances ?

Select those which are applicable

• Dearness Allowance
• Allowance Related to Qualifications
• Allowance Related to Additional Duty or Extra Duty or Working on Holidays, etc.,.
• Allowance Related to Capacity Building or Knowledge Up gradation or Trainings.
• Allowance Related to Deputation or Posting
• Allowance Related to Housing including HRA
• Allowance Related to Performance, Merit, Good Service etc.,.
• Allowance Related to Risk and Hardship.
• Allowance Related to Travel including Travelling Allowance.
• Allowance Related to Sports.
• Allowance Related to Uniform.
• Allowance Related to Running Staff.

Answer :- (1273 WORDS & 7638 CHARACTERS)

Dearness Allowance :-

Allowances are essential components of compensation and must be protected and periodically revised. DA must remain fully indexed to inflation. The actual price is not taken in to account while calculating the Consumer Price Index (AICPI) as there are about 463 items which are used for arriving the Consumer Price Index, if the few items price rise take place and other items shows negative Price Rise as a whole its effects get neutralized. The present calculation of Average 12 months should be replaced by 6 months average as the DA is paid once in 6 months. The consumption pattern of Central Government employees differs from that of industrial workers. Therefore, a separate consumption basket representing government employees should be constructed, with appropriate weights for essential expenditure heads such as food, housing, education, healthcare, and transportation. Price data should be collected from open retail markets and cooperative outlets to ensure that the index reflects the actual prices paid by consumers rather than administratively determined prices. Point to Point DA should be provided, now DA is rounded off to lowest value. If the employees are eligible for 55.95% DA, the DA Sanctioned in only 55% DA. The prices should be calculated based on Market Rates and not on Government Rates which varies up to 25%. We proposed that 8th CPC may recommend to merge if the DA / DR crosses 25% with Basic Pay and Basic Pension.

Allowance Related to Qualifications: –

Any Central Government Employee acquiring Additional Qualification over and above the prescribed Qualification for the concerned post as per RR may be given 10% of Basic Pay as Additional Qualification Allowance.

Allowance Related to Additional Duty or Extra Duty or Working on Holidays, etc.

Due to shortage of Manpower and to meet the Targets in all Offices, employees are asked to Overstay and work additional hours without any compensation. Employees who are governed under the Factories Act 1948 are entitled for OT Wages at Double the rate for extra hour. Employees who are not governed under the Factories Act 1948 may all be provided Overtime at Single Rate on their Basic Pay and DA for every hour of extra work done over and above the actual working hours.

Allowance Related to Housing including HRA:-

In view of the sharp rise in Housing costs and the mismatch between HRA and the actual prevailing Market Rent the following revision are proposed.

The following table:

Further, HRA should be indexed to Dearness Allowance so that it automatically adjusts with inflation. The Classification of cities should also be reviewed every Five Years to reflect changing population and housing conditions. We further request that the 8th CPC may consider for recommending Payment of HRA to the Pensioners since they are facing hardship to lead a decent life after the retirement since a major portion of the pension is utilized for paying House Rent.

Allowance Related to Risk and Hardship :-

The employees working in Railways, Defence Industries Manufacturing / repairing / Servicing / Handling of Arms, Ammunition, Chemicals, Weapons etc., are subjected to High Risk and Hazard due to their nature of work. Similarly, all the employees working in continuous Risk nature of Job including in Laboratories, Health Care Workers, Sanitary Workers, Fire Fighting Staffs, Electricians, Safety Categories in Railways etc., may be paid Minimum Rs.10,000/- per month as Risk and Hardship Allowance. Therefore, the existing Rate of Risk Allowance / Risk and Hardship Allowance etc., should be enhanced to Rs.10,000/- and the same should be linked with DA rise, so that it automatically adjusts with inflation.

Transport Allowance :-

The 8th CPC may consider increasing the Transport Allowance by three times of the existing rates and also consider for restoration of City Compensatory Allowance which was abolished. The same should be linked with DA rise, so that it automatically adjusts with inflation.

Travelling Allowance / Conveyance Allowance :-

In Majority occasion employees are deputed on Duty in short notice and they struggle for getting confirmed reservation in their entitled class in the Train. Therefore, we proposed all the Central Government Employees irrespective of the post / grade should be made eligible for Air Travel while deputed on Temporary Duty. Similarly all employees should be entitled for AC Taxi for Road Travel as Non AC vehicles are not available

Daily Allowance :-

Considering the steep escalation in Hotel Tariffs, Food Cost etc., the existing rate of Daily Allowance may be increased by Three Times and the same should be linked with DA rise, so that it automatically adjusts with inflation.

Hospital Patient Care Allowance / Patient Care Allowance / Nursing Allowance

This allowance may be enhanced by 3 times and the left out categories working in hospitals / dispensaries such as Industrial employees and Ministerial Staff etc may also be included. The same may be linked with DA increase.

Cooking Allowance

At present Cooks working in Departmental Canteens are paid Rs.1000 per month as cooking allowance. However the same is not being paid to the cooks of Industrial Canteens/ Statutory Canteens etc. we proposed that this allowance may be enhanced to Rs. 3000/- and the same may be extended to all cooks of Central Government without any discrimination. The same may be linked with DA increase

Allowance related to Sports :-

Regular participation in sports improves physical fitness, reduces lifestyle diseases, enhances mental resilience, and lowers stress levels. A healthier workforce leads to:

• Reduced absenteeism
• Improved efficiency and concentration
• Lower long-term healthcare expenditure

(b) Stress Management

Government service often involves high levels of responsibility, public interaction, and administrative pressure. Sports activities provide a constructive outlet for stress, improving morale and work-life balance.

(c) Promoting Work-Life Balance

A structured sports allowance encourages employees to maintain a healthy balance between professional duties and personal well-being, leading to higher job satisfaction. The existing limit of not more than 5 additional increments during entire service for Sports Persons achieving laurels at National & International Level may be withdrawn and every time sports person achieve such laurels additional increments may be given without any restrictions. The existing incentive being granted to the Team Managers, Coach, Masseurs, Doctors etc may be enhanced by three times.

Allowance related to Uniform :-

Dress allowance may be provided to all Central Government Employees including Industrial Employees and the existing rate may be increased by Three times and the same should be linked with DA rise, so that it automatically adjusts with inflation.

Night Duty Allowance :-

Night Duty Allowance should be paid in the actual Basic Pay and DA of the Central Government Employees without imposing any artificial Basic Pay Ceiling as decided by the Hon’ble Supreme Court.

Children Education Allowances :-

CEA may be given up to Post Graduation level in Arts, Science and Commerce and in Professional Courses up to Post Graduation Level and MBA. The existing CEA may be enhanced to Rs. 10,000/- per child per month, considering the highly escalating cost of education hostel fees etc. Moreover most of the schools mandate that uniforms / note books / text books etc should be purchased from them directly which is significantly higher than market price. Hostel subsidy may be increased to Rs. 35000/ per month per child. CEA and Hostel Subsidy should be linked with DA rise, so that it automatically adjusts with inflation. Hostel Subsidy may be extended if the Children study in a particular school but staying in a different Hostel. At present only two surviving children are eligible for CEA. There are cases that a child is physically / mentally incapacitated to attend school and due to various other reasons. In such cases if a third child is there then that child may also be granted CEA. In other words two children should be entitled for CEA / Hostel subsidy without any other restrictions. As regards Divyang Children reimbursement will be double the above amount proposed for normal children.

Special Allowance for Child Care to Woman with disability

The existing special allowance for child care to woman with disability may be increased by three times and same should be linked with DA Increase.

Departmental Specific Allowances

Departmental Specific allowances will be proposed by the Staff Side of respective Ministries / Departments. If not the same may be left to the Staff Side to settle such allowances through bilateral agreements as in the past.

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