Increase in Constant Attendant Allowance for Central Government Pensioners

The Central Government of India has announced an increase in the Constant Attendant Allowance (CAA) for its civilian pensioners following the recent rise in Dearness Allowance (DA). As per the increment, the CAA will surge by 25%, effective from January 1, 2024, according to a statement from the Ministry of Personnel, Public Grievances, and Pensions.

The Department of Pension & Pensioners’ Welfare (DoPPW) conveyed in an Office Memorandum that the CAA payable to pensioners will increase by 25% every time the DA on the revised pay reaches a 50% threshold. Following this provision, the CAA has now been enhanced from Rs 6750 to Rs 8438 per month.

This adjustment is aimed at supporting retirees who require assistance due to health issues, thereby reflecting the government’s commitment to ensuring the welfare of pensioners. The increment follows a 4% rise in DA in January 2023, which led the DA to account for 50% of the basic pay.

The increase in the CAA comes amid other changes in allowances affecting central government employees. Key allowances adjusted include the Tough Location Allowance, Conveyance Allowance, Children Education Allowance, House Rent Allowance, among others. These modifications are part of routine updates following the DA hike, which impacts several benefits connected to government service remuneration.

In related developments, media reports suggest that the Union Government is considering the release of Dearness Allowance (DA) and Dearness Relief (DR) arrears, previously withheld during the COVID-19 pandemic. This decision is anticipated ahead of the Diwali festival, aiming to benefit over 70 lakh employees.

The Narendra Modi government is reportedly contemplating an additional 3-4% DA hike, potentially bringing the DA rate to 53% of the salary, with retroactive application from July 2024. However, official confirmation is awaited as no announcement was made in the latest cabinet meetings.