7th Pay Commission: Dearness Allowance (DA) has been increased by 4% for central government employees. DA of central government employees has now increased to 50%. Dearness Relief (DR) for Central Government pensioners has also increased from 4% to 50%. The increased DA and DR will be considered effective from January 1, 2024.
7th Pay Commission: Dearness Allowance (DA) has been increased by 4% for central government employees. DA of central government employees has now increased to 50%. Dearness Relief (DR) for Central Government pensioners has also increased from 4% to 50%. The increased DA and DR will be considered effective from January 1, 2024. This will benefit about 49.18 lakh central government employees and 67.95 lakh central government pensioners.
Dearness allowance is a part of the salary of government employees and pensioners. Therefore, when DA increases, the take-home pay of central government employees will also increase. Here is a calculation to understand how the salaries of central government employees will increase after the recent DA hike.
Salary will increase by 4% DA increase
Let us take the case of a central government employee who gets a basic salary of Rs 45,700 every month. Earlier, his dearness allowance at the rate of 46 percent was Rs 21,022. Due to increase in DA by 50 percent, his dearness allowance will increase to Rs 22,850. So he will get Rs 1,818 more. This has been arrived at by subtracting Rs 21,022 from Rs 22,850.
All these allowances will increase together
There is good news for central government employees as DA has reached 50%. As per the recommendations of the 7th Pay Commission, when DA reaches 50%, some other allowances and parts of salary will also increase. This will increase the salary of central government employees. These allowances include house rent allowance, children’s education, special allowance for child care, hostel subsidy, transfer travel allowance, gratuity limit, daily allowance etc. will increase.
Now you will get this much HRA
Now it has also been recommended that 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%.
HRA increased due to 50 percent DA
Central government employees get House Rent Allowance (HRA), which depends on where they live. As per the recommendations of the 7th Pay Commission, HRA for Class When DA reached 25%, as per the recommendations of the 7th Pay Commission, the HRA rates in cities X, Y and Z were revised to 27%, 18% and 9% of the basic salary. Now after DA reaching 50 percent, the government has again revised it.
Now the government has increased HRA when DA reaches 50% – HRA will increase by this much in salary.
Let us assume that a central government employee who gets Rs 45,700 as basic salary lives in a Y category city. Till now his HRA was Rs 8,226. Once DA reaches 50%, their HRA will increase to 20%. So now his HRA will be revised to Rs 9,140. That means, now you will get Rs 914 more every month than before.
