Union Cabinet doubled Risk Allowance, Hospital Patient Care allowance and Patient care allowance

Dear Comrades,

Union Cabinet doubled the Risk Allowance, Hospital Patient Care Allowance and Patient Care Allowances in the meeting held on 04/10/2012. The decision is as follows.

The Cabinet today approved revision of rates of Risk Allowance. Hospital Patient Care Allowance and Patient Care Allowance payable to about two lakh entitled Central Government employees to double the existing rates with effect from 1s' September, 2008.

The proposed revision in the rates of the Risk Allowance, Hospital Patent Care Allowance and Patient Care Allowance will provide succor to the employees at risk due to the nature of their duties. It will also result in considerable financial savings as compared to the Risk Insurance Schemes/Packages.

The financial implication of doubling the extant 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) {Rs.40.50 crore plus service tax per annum for insurance policy and Rs.462.76 crore plus service tax for purchase of annuity} for implementing the Risk Insurance package. 

The amount of Risk Allowance, Hospital Patient Care Allowance and Patient Care Allowance would be automatically raised by 25 per cent every time the Dearness Allowance on the revised pay structure goes up by 50 per cent. 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.