7th Pay Commission: Central government employees can look forward to another increase in their Dearness Allowance (DA) come July 2024. The government, which raises DA twice a year, has already implemented the first increment from January 1, and the second is slated to come into effect from July 1. In January, the government raised DA by 4 percent, bringing it up to 50 percent. Now, all eyes are on the upcoming increase.
Good News for Central Government Employees: Dearness Allowance Set to Increase Again
Speculations suggest that considering the prevailing inflation rate, the government may opt for a 4 to 5 percent increase. If the government chooses a 5 percent hike, employees can expect their DA to rise to 55 percent from July 1. Presently, central government employees are enjoying a 50 percent DA, effective from January 2024. The next hike is expected to kick in from July, although it might not be officially approved until September. However, historically, the government tends to announce the increase by September, with retroactive implementation from July.
Notably, the government sanctioned a 4 percent DA increase from January 1, 2024. Additionally, various allowances for government employees, including railway and defense personnel, are also set to increase soon. The Department of Personnel and Training (DoPT) has issued directives to revise these allowances in line with the recommendations of the 7th Pay Commission, which assessed the benefits provided to central government employees.
Among the allowances slated for revision are:
- Dearness Allowance
- House Rent Allowance
- Transport Allowance
- Children Education Allowance
- Traveling Allowance during tours
- Deputation Allowance
- Fixed Medical Allowance for Pensioners
- Higher Qualification Allowance
- Leave Travel Encashment
- Leave Encashment
- Non-Practicing Allowance
Of particular note is the revision in House Rent Allowance (HRA) rates, which are tied to DA percentages. When DA reaches 50 percent, the government revises the HRA rates to 30 percent, 20 percent, and 10 percent of the basic salary in cities categorized as X, Y, and Z, respectively. Previously, HRA for X, Y, and Z type cities stood at 27 percent, 18 percent, and 9 percent, respectively, before the increase to 30 percent, 20 percent, and 10 percent, respectively.
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