The central government has given a 4% increase in the number of DAs for employees and pensioners in this financial year. This hike takes the DA up to 50%, which results in an overall increase in salaries and pensions for central government employees and pensioners.
Starting from January 1, 2024
As from the first of January in the year two thousand and twenty-four the Dearness Allowance for the existing central government employees is to be enhanced by four percent. Likewise, even on the DA front for central government pensioners, the increase is proposed to be 4% more to take the DA+DR to 50%.
This increase is expected to make an addition to 13 distinguishing allowances such as house rent allowance (HRA), conveyance allowance, hotel accommodation, delegation allowance, split duty allowance, and so on.
EPFO Circular and Allowances Hike
However, as per the new circular released by the EPFO on July 4, 2024, these changes are to be implemented in accordance with the guidelines provided by the Department of Expenditure/DoPT. The circular indicated that these allowances will be paid at the elevated rates, including an additional 25% where applicable, from January 1, 2024.
Impact of the DA Increase
The DA increase to 50% of the basic salary will result in the enhancement of different allowances for central government employees by 25%. These allowances include:
- House Rent Allowance (HRA)
- Conveyance Allowance
- Child Care Allowance for Women Employees Suffering from Disabilities
- Children’s Education Allowance
- Hotel Accommodation
- Taxis or other forms of transport are to be used for local trips or for any movement within the region.
- Meal Reimbursement/Daily Allowance
- Travel Allowance for Own Cars, Taxies, Auto Rickshaws, and Scooters
- Transport Allowance for Shifting Personal Effects
- Dress Allowance
- Split Duty Allowance
- Deputation (Duty) Allowance
These increases will lead to a steep rise in the mean pay scale of central government employees.
