2024-03-10 10:43:43
New Delhi: Yesterday itself the Central Government has announced a 4% increase in Dearness Allowance (DA) and Dearness Relief (DR) for its employees and pensioners. This increase will increase the DA to 50% of the basic pay of employees, which will increase their take home pay. DR for pensioners has also been increased by 4%, resulting in 50% DR.
How many will benefit?
The central government has informed that with effect from January 1, 2024, the increase in DA and DR will benefit approximately 49.18 lakh central government employees and 67.95 lakh central government pensioners. Along with this, the employees of state governments will also benefit because in the matter of DA they follow the central government. Tripura government had already announced increase in DA of state government employees yesterday itself.
How much will the salary increase?
The 4% increase in DA will have a direct impact on the salaries of employees. For example, the DA of an employee with a basic salary of Rs 45,700 per month will increase from Rs 21,022 to Rs 22,850, giving an additional Rs 1,818 per month. Additionally, other allowances and components of salary, such as House Rent Allowance (HRA), daily allowance, gratuity ceiling and hostel subsidy will also increase once DA reaches 50%.
DA RateBasic Pay (Rs)Dearness Allowance (Rs)HRA (Rs)*Salary (Rs)46% DA45,70021,0028,22674,99850% DA45,70022,8509,14077 ,680
How much will HRA increase?
HRA rates will be revised once DA reaches 50%. In For example, an employee with a basic salary of Rs 45,700 who lives in a Y-category city will see his HRA increase from Rs 8,226 to Rs 9,140, an increase of Rs 914 per month.
How much increase in child care allowance?
Other allowances and components like special allowance for child care, gratuity ceiling, dress allowance and daily allowance will also be increased by 25% once DA reaches 50%.
How much benefit to pensioners
DR for pensioners has also been increased by 4%, resulting in 50% DR. For example, a pensioner drawing a basic pension of Rs 36,100 per month will now get Rs 18,050 as dearness relief, which will increase his pension by Rs 1,444 per month. Also note
It is important to note that the allowances mentioned may vary depending on the service, city and specific rules. The calculations provided are for reference purposes only and may vary from one employee or pensioner to another depending on their individual circumstances and pay scale.