Govt revises 7th CPC allowances, introduces Risk & Hardship Matrix

The 7th Central Pay Commission (CPC) recommended revised allowance rates in line with Dearness Allowance (DA), leading to a structured revision across various categories. Fully DA-indexed allowances remain unchanged, while non-DA indexed allowances have been increased by a factor of 2.25. Partially indexed allowances have been raised by 1.5 times, and percentage-based allowances have been rationalised by a factor of 0.8. A Risk & Hardship Matrix has been introduced to categorise allowances linked to varying degrees of risk and hardship faced by employees.