There is good news for central government employees. Their three allowances will get a bumper increase of 25%. This hike is happening because the Dearness Allowance (DA) has crossed the 50% mark. The best part is that this increase will be considered effective from January 1, 2024. This means employees will also get arrears of one and a half years.

According to the order issued by the Department of Telecommunications (DoT) on July 2, 2025, this decision is based on a notification from the Finance Ministry. It has also been clarified that there is no need for any new notification. All ministries and departments have been asked to implement the revised rates of the Tough Location Allowance.

People Living in Remote Areas Will Get This Allowance

This 25% hike will be under the Tough Location Allowance. The central government gives this allowance to employees working in remote and difficult areas. Since the Dearness Allowance (DA) has crossed 50%, a 25% increase has been applied to the Tough Location Allowance at three levels.

Hike in All Three Types of Tough Location Allowances

As per the new notification, Tough Location Allowance-I, II, and III have been increased by 25%. These are given to government employees working in remote, tribal, high-altitude, or climatically tough regions.

Revised Rates of Tough Location Allowance

Tough Location Allowance-I

Old Rate:

  • Pay Level 9 and above: ₹5,300
  • Pay Level 8 and below: ₹4,100

New Rate (after 25% hike):

₹6,625 and ₹5,125 respectively

Tough Location Allowance-II

Old Rate:

  • Pay Level 9 and above: ₹3,400
  • Pay Level 8 and below: ₹2,700

New Rate:

₹4,250 and ₹3,375 respectively

Tough Location Allowance-III
(Includes Bad Climate, Tribal Area, and Sundarban Allowance)

Old Rate:

  • Pay Level 9 and above: ₹1,200
  • Pay Level 8 and below: ₹1,000

New Rate:

₹1,500 and ₹1,250 respectively

Why This Hike Was Automatically Approved

As per the Finance Ministry’s order dated 19 July 2017, whenever the DA reaches 50%, a 25% increase in related allowances is automatically approved. That’s why no new order was needed this time for the hike in Tough Location Allowance.

Who Will Get the Benefit?

Thousands of central government employees posted in places like the Northeast, Jammu and Kashmir, Ladakh, Andaman-Nicobar, Lahaul-Spiti, and Sundarbans will get direct benefits. Their monthly salary will increase by ₹250 to ₹1,325 depending on their level, which means an annual increase of ₹3,000 to ₹15,900.

Why the Government Gives Tough Location Allowance

Tough Location Allowance encourages employees working in harsh conditions and reflects the government’s policy of providing services in all parts of the country. It makes such postings not only financially rewarding but also boosts the spirit of public service.