DA Hike Updates: For central government employees, March has been quite beneficial because the Central Cabinet granted a 4 percent rise in dearness allowance (DA Hike). Now that the dearness allowance has increased, it has gone up by 50%. Moreover, HRA has been updated. The central government has also enhanced seven additional allowances in addition to dearness allowance (DA) and housing allowance (HRA).
Which benefits have been raised
- Dearness Allowance
- House Rent Allowance
- Transport Allowance
- Children Education Allowance
- Travelling Allowance while on Tour
- Deputation Allowance (Applicable to officers who are deputed to other departments)
- Fixed Medical Allowance for Pensioners.
- Higher Qualification Allowance
- Leave Travel Concession
- Leave encashment (while on duty and at the time of retirement)
- Non-Practicing Allowance
7th Pay Commission Implementation
When the 7th Pay Commission went into effect in 2016, the dearness allowance (DA) was eliminated. The amount that employees get as an allowance will be added to the base salary, or Dearness Allowance Merger Basic Salary, in accordance with the guidelines. The dearness allowance will be reset to zero after it reaches up to fifty percent.
If an employee’s base pay is Rs 18,000, he will earn Rs 9,000 as half of his daily allowance. Nevertheless, the dearness allowance will be eliminated once the DA hits 50% since it would then be added back to the base pay. Thus, the base pay will now be changed to Rs 27,000 as a result. The government might need to adjust the fitting for this, though.
Anticipation for New Dearness Allowance
Experts predict that in July, the new dearness allowance will be determined. due to the government’s twice-yearly hikes in the dearness allowance. From January through March, approval has been granted. The following adjustment will now take effect in July 2024.
In this instance, the dearness allowance will only be combined if the AICPI index for the period of January through June 2024 indicates that it will be three percent, four percent, or higher. The employees’ base pay will be increased by 50% of the dearness allowance once this situation is apparent.