04 Oct, 2012 9:43p.m.

Cabinet approves hike in risk, hospital care allowance

The cabinet today approved revision of rates of Hospital Patient Care Allowance and Patient Care Allowance and Risk Allowance entitled central government employees. The rates are to double from existing rates with effect from September 1, 2008

The revision of the risk allowance given to central government employees engaged in hazardous duties across the country will result in considerable financial savings as compared to the Risk Insurance Schemes or Packages. The doubling of the rate of Risk Allowance, Hospital Patient Care Allowance and Patient Care Allowance would be Rs 42.16 crore per annum, as against Rs 503.26 crore plus service tax (approximately) for implementing the risk insurance package.

Medical Allowance
The amount of Risk Allowance, Hospital Patient Care Allowance and Patient Care Allowance will be raised by 25 per cent every time the Dearness Allowance on the revised pay structure goes up by 50 per cent. The current DA stands at 72%.

The proposed revision in the rates of Risk Allowance, Hospital Patient Care Allowance and Patient Care Allowance will benefit certain categories of central government employees engaged in duties involving special risks.

Risk allowance, which varies from Rs 20 to Rs 200, are given to employees engaged in duties involving greater hazards or whose health is liable to be affected progressively over a long period of time.

The allowance is given to all class of employees, including sweepers engaged in cleaning of underground drains, sewer lines and those working in trenching grounds and infectious diseases hospitals.

Hospital Patient Care and Patient Care Allowance is entitled to select employees from Group C (Clerical) and D (lower grade including peons).
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