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7th Pay Commission: Big news for central employees, dearness allowance will be 55% on July 1!

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7th Pay Commission DA Hike: Good news for central employees. Dearness Allowance (DA) of employees is going to increase once again in July 2024. The central government increases dearness allowance twice a year. The first has come into effect from January 1 and now the second will come into effect from July 1.

7th Pay Commission DA Hike : Good news for central employees. Dearness Allowance (DA) of employees is going to increase once again in July 2024. The central government increases dearness allowance twice a year. The first has come into effect from January 1 and now the second will come into effect from July 1. The government increased DA by 4 percent in January, due to which DA has increased to 50 percent. Now it remains to be seen how much the government will increase the dearness allowance.

Will DA increase to 55 percent?

It is expected that in view of inflation, the government may increase the inflation rate by 4 to 5 percent. If the government increases DA by 5 percent, then the DA of the employees will increase to 55 percent on July 1. Central government employees are currently getting 50 percent dearness allowance (DA). This is applicable from January 2024. The next increase in dearness allowance is to be implemented from July 2024. However, it may be September by the time it is approved. If we look at the record of previous years, the government can announce increase in DA by September. But, it will be implemented from July only.

The government had approved a 4 percent increase in dearness allowance from January 1, 2024. Now these 6 allowances of government employees will also be increased soon. The Department of Personnel and Training (DoPT) has issued instructions to release the allowances being received by the Central Government employees as per the Office Memorandum dated 2 April 2024. Following its 2016 valuation and recommendations, the 7th Pay Commission examined the benefits offered to central government employees including railway employees, civilian defense employees and defense personnel. These are allowances applicable to central government employees.

  • Dearness Allowance
  • House rent allowance
  • Transport Allowance
  • Children Education Allowance
  • Traveling Allowance During Tour
  • Deputation Allowance
  • Fixed Medical Allowance for Pensioners
  • Higher Qualification Allowance
  • Leave Travel Encashment
  • Leave Encashment
  • Non Practicing Allowance

House Rent Allowance (HRA)

When DA reaches 50%, the government has revised the HRA rates to 30%, 20% and 10% of basic salary in cities X, Y and Z respectively. House rent allowance given to employees depends on the category of that city. In which they live. HRA for X, Y and Z type cities was 27%, 18% and 9% respectively, which has been increased to 30%, 20% and 10%.

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Pravesh Maurya
Pravesh Maurya
Pravesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ businessleaguein@gmail.com
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