India Business News: In a welcome move for millions of central government employees and pensioners, the government announced a 4% increase in the dearness allowance (DA) and dearness relief (DR), raising the DA rate to 50% in March 2024.
India Business News: The recent 4% hike in Dearness Allowance (DA) for central government employees and retirees has led to an increase in several allowances, with an aim to provide relief from rising prices. Here’s how this hike impacts various benefits for central government employees and pensioners.
HRA hike for central govt employees: After DA hiked to 50%, several other allowances including HRA of the central government employees, will also be increased. The 7th Pay Commission recommended that the rates of HRA be revised to 30%, 20%, and 10% of basic pay in X, Y, and Z cities, respectively, when DA reaches 50%. Will the central government release a separate order mentioning the hike in HRA as DA reaches 50% now? How much will the hike be in HRA now? When can central government employees expect the increased HRA? Know here
The DA was hiked in March 2024. With the hike, all other related allowances such as house rent allowance, daily allowance, gratuity ceiling and hostel subsidy have been increased in line with the 7th Pay Commission recommendations.
Meanwhile, the Delhi government counsel said during the hearing that the file is being processed, and urged the bench to grant time till April 25 for marking the payment.