Tough Location Allowances Hiked After DA Hits 50%

In a move set to benefit thousands of Central Government employees posted in remote and challenging terrains, the Department of Telecommunications (DoT) has officially revised the rates of Tough Location Allowances (I, II, III) following the Dearness Allowance (DA) reaching the 50% threshold effective January 1, 2024.

The enhancement applies automatically under existing rules and does not require a fresh order from the Department of Expenditure (DoE), as reaffirmed in the latest Office Memorandum dated July 2, 2025.

What’s the Key Change?

As per the DoE’s guidelines (OM No. 3/1/2017-E.II(B) dated 19.07.2017), whenever DA increases to 50%, certain allowances—including those for difficult postings—automatically rise by 25%. Accordingly, the revised Tough Location Allowances are as follows:

Enhanced Monthly Rates (Effective 01.01.2024)

Allowance Type	Old Rate (Level 9 & above)	New Rate	Old Rate (Level 8 & below)	New Rate
Tough Location Allowance-I (Part-A & B)	₹5,300	₹6,625	₹4,100	₹5,125
Tough Location Allowance-II (Part-C)	₹3,400	₹4,250	₹2,700	₹3,375
Tough Location Allowance-III (Part-D)	₹1,200	₹1,500	₹1,000	₹1,250
Bad Climate Allowance (TLA-III)	₹1,200	₹1,500	₹1,000	₹1,250
Tribal Area Allowance (TLA-III)	₹1,200	₹1,500	₹1,000	₹1,250
Sunderban Allowance (TLA-III)	₹1,200	₹1,500	₹1,000	₹1,250

What Does This Mean?

Automatic Adjustment: No separate orders are needed for each allowance; the 25% increase is embedded in policy.
Wider Applicability: These revised rates apply to allowances under categories such as Bad Climate, Tribal Areas, and Sunderbans, all falling under Tough Location Allowance-III.
Pay Level Sensitivity: The hike is applicable differently for employees in Pay Level 9 & above and Level 8 & below.

Context & Background

This adjustment follows the DoE’s directive (ID No. 2/5/2017-E.II(B), dated 20.03.2024), which reiterated that when DA reaches the 50% milestone, a 25% increase in various allowances is automatic. This principle is rooted in the 7th CPC framework and aims to offset the increased cost of living in difficult postings.

The Ministry of Communications, in issuing this OM, ensures continuity with past policy while formalizing the enhanced rates for DoT employees stationed in areas categorized under Parts A to D of remote locations.

The revised rates are effective retrospectively from January 1, 2024 and will be reflected in salary disbursements accordingly. All other conditions in the earlier OM dated July 19, 2017, remain unchanged.

This Office Memorandum was signed off by Pravin Kumar Singh, ADET (PAT), with the approval of the competent authority.

View OM: