DA Hike Update: After the latest increase in dearness allowance, its rate has now reached 50 percent. When DA reaches 50 percent, other allowances also increase…
The months-long wait of central employees and pensioners is over. Modi government has announced increase in dearness allowance before Holi. After this increase, now dearness allowance has increased to 50 percent. Central employees are going to get many benefits from this.
The increase will be implemented from January 1
The recent meeting of the Union Cabinet led by Prime Minister Narendra Modi took place a day earlier on Thursday, March 7. The decision to increase DA was also included in the decisions taken in the meeting. The Cabinet approved increasing DA by 4 percent. Earlier, central employees were getting the benefit of dearness allowance at the rate of 4 percent. After the latest decision, now central employees will get the benefit of dearness allowance at the rate of 50 percent. This benefit will become effective from January 1, 2024.
Dearness allowance increases twice
At present, the recommendations of the 7th Pay Commission are applicable on the salary of central government employees and pension of retired former central employees. The Pay Commission has made a provision for dearness allowance to overcome the effect of inflation. According to the recommendation of the 7th Pay Commission, dearness allowance is revised twice a year. The first increase comes into effect from January, while the second increase comes into effect from July.
What does the 7th Pay Commission say?
This time’s DA increase becomes special for different reasons. The 7th Pay Commission recommends that if dearness allowance increases to 50 percent, then many other allowances are also affected. The allowances affected include HRA, Gratuity, Children’s Education-Transport Allowance etc. There is also a provision in the 7th Pay Commission that if DA-DR reaches 50 percent, then it is added to the basic component of salary-pension and after that the calculation starts again from zero.
Which allowances will change?
- Gratuity
- House rent allowance
- Children’s education allowance and hostel subsidy
- Special allowance for child care
- TA on transfer
- Dress allowance
- Mileage allowance
- Daily allowance
The benefits are going to be so much
If the basic salary of an employee is at the minimum limit i.e. Rs 18,000, then his daily allowance will increase by 25 percent. Hostel subsidy given for children’s education will also increase by 25 percent. The gratuity benefit received on retirement will increase from Rs 20 lakh to Rs 25 lakh. The increase in HRA will depend on the category of the city. There will be an increase of 1-3 percent in HRA depending on the category.
