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Dearness Allowance (DA) was recently hiked by 4% to 50% for central government employees. The Department of Personnel & Training has said the limits of children education allowance and hostel subsidy “would be automatically raised by 25% every time the dearness allowance on the revised pay structure goes up by 50%”.
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.
In a memorandum released by DoPT, the allowances for central government employees and pensioners have been revised.
7th Pay Commission allowances: The government has revised a number of allowances for central government employees recently.
DA hiked by 4%: The 7th Pay Commission reviewed all benefits offered to Central Government employees, including those for railway employees, civilian defence workers, and defence troops, in response to its evaluation and recommendations from 2016. The key guidelines for these six allowances for employees of the central government have been issued.