Hospital patient care allowance cleared

In good news for about two lakh central government employees, the union cabinet today approved doubling of existing rates of hospital patient care allowance. 

Besides, it has decided to revise the existing rate of risk allowance given to central government employees engaged in hazardous duties across the country.

"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 are to double from existing rates with effect from September 1, 2008," an official statement said.

The decision will result in considerable financial savings as compared to the Risk Insurance Schemes or Packages, the statement said.

The financial implication of doubling 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.

"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," it said.