Comprehensive Guide to Dearness Allowance (DA) Increase to 50% and Associated Benefits for Central Government Employees.
As part of its commitment to ensuring the financial well-being of Central Government employees and pensioners, the Union Cabinet has approved a 4% increase in Dearness Allowance (DA) and Dearness Relief (DR) effective from January 1, 2024. This decision, under the leadership of Prime Minister Shri Narendra Modi, comes in response to the need to counterbalance the impact of rising prices on the populace.
With this increment, the total Dearness Allowance now stands at 50%, triggering adjustments in various allowances and salary components, as recommended by the 7th Pay Commission. Below is a detailed breakdown of the allowances affected and the corresponding revisions:
1. House Rent Allowance (HRA): The rates of HRA have been revised to 27%, 18%, and 9% of Basic Pay in X, Y, and Z cities respectively, when DA crosses 25%. When DA reaches 50%, the HRA percentages will be further increased to 30%, 20%, and 10% for X, Y, and Z cities respectively.
2. Children Education Allowance: Children Education Allowance will be increased by 25% each time DA reaches 50%, resulting in a raise from Rs 2,250/- per month to Rs 2,812.5/- per month.
3. Children Education Allowance to Divyang Child: Similarly, Children Education Allowance for Divyang Child will also see a 25% increase, rising from Rs 4,500/- per month to Rs 5,625/- per month.
4. Hostel Subsidy: Hostel Subsidy will be raised by 25% whenever DA reaches 50%, elevating it from Rs 6,750/- per month to Rs 8,437.5/- per month.
5. Special Allowance for Child Care for Women with Disabilities: The Special Allowance for Child Care for Women with Disabilities will also undergo a 25% increase, from Rs 3,000/- per month to Rs 3,750/- per month.
6. Gratuity Ceiling: The maximum Gratuity Ceiling will be increased by 25% whenever DA rises by 50%, raising it from Rs 20 Lakhs to Rs 25 Lakhs.
7. Dress Allowance: Dress Allowance categories will see a 25% increase whenever DA rises by 50%, impacting various employee categories as per the specified rates.
8. TA on Transfer (Transportation of Personal Effects): TA rates for transportation of personal effects will be increased by 25% when DA reaches 50%, according to the specified levels.
9. Mileage Allowance for Own Transport: The Mileage Allowance for Own Transport will witness an increase from Rs 24/- per km to Rs 30/- per km for journeys performed in own car/taxi, and similar adjustments for other modes of transport.
10. Daily Allowance: Daily Allowance rates for reimbursement of various expenses will be increased by 25% when DA rises by 50%, varying as per pay levels.
11. Reimbursement of Hotel Charges, Travelling Charges, and Food Charges: Reimbursement ceilings for hotel charges, travelling charges, and food charges will also see a 25% increase whenever DA increases by 50%.
These adjustments aim to ensure that Central Government employees and pensioners receive adequate compensation to meet the challenges posed by inflation and rising living costs. The government's proactive approach in implementing these revisions underscores its commitment to the welfare and financial security of its workforce and retirees.
