7th Pay Commission Update: Central government civilian pensioners will receive 25% hike in Constant Attendant Allowance (CAA) since the dearness allowance (DA) has already touched 50% of the basic pay after 4% rise in January this year.

After the January DA hike, several key allowances were automatically revised by up to 25% over the existing rates.

Now, the Ministry of Personnel, Public Grievances, and Pensions has announced an increase in the CAA for civilian pensioners.

Also read: 7th Pay Commission: When will central govt employees’ wait for DA hike announcement finally end? Find out here

The Department of Pension & Pensioners’ Welfare (DoPPW) “conveyed that the rate of Constant Attendant Allowance payable to the civilian pensioners shall be increased by 25% every time the dearness allowance on the revised pay in the pay matrix is increased by 50%,” the department said in an Office Memorandum.

The DoPPW has requested all ministries and departments to enhance the amount of CAA by 25% from the existing Rs 6750 to Rs 8438 per month with effect from January 1, 2024.

This adjustment aims to support retirees who require assistance due to health issues, reflecting the government’s commitment to their welfare, it said.

Also read: 7th Pay Commission: With DA at 50%, THIS key allowance gets revised for section of central govt employees

Who are central government civilian pensioners?

Central government civilian pensioners are people who are retired from the civil services of the central government and are eligible to receive a pension.

The rules say that they must have served for a minimum of 10 years. Their pension is calculated as 50% of their last basic pay or average basic pay, whichever is higher.

The minimum pension is currently Rs 9,000 per month, and the maximum is 50% of the highest pay in the Government of India. The pension is payable until the date of death.

Allowances impacted by DA hike to 50%

As per the DoPT circular, among the key allowances impacted were Tough Location Allowance, Conveyance Allowance, Special Allowance for Children of Women With Disabilities, Children Education Allowance, House Rent Allowance or HRA, Hotel Accommodation, Reimbursement of Traveling Charges for Travel Within the City, Reimbursement of Food Charges/ Lump Sum Amount or Daily Allowance, Dress Allowance, Split Duty Allowance and and Deputation (Duty) Allowance.