7th Pay Commission DA Hike: If you are a government employee then this news is useful for you. Actually, the government has increased the dearness allowance of central employees by four percent. DA to employees has now increased from 46 percent to 50 percent. Recently, the Finance Ministry has told six important things regarding the increase in the basic salary of employees.
Dearness Allowance (DA) of central government employees has increased to 50 percent. Central government employees will now get a 4 percent increase in their Dearness Allowance (DA). For central government pensioners, dearness relief (DR) has been increased by 4 per cent to compensate for the rise in prices.
According to a press note from PIB dated March 7, 2024, both Dearness Allowance (DA) and Dearness Relief (DR) will result in a combined annual burden of Rs 12,868.72 crore on the exchequer. This will benefit approximately 49.18 lakh employees and 67.95 lakh pensioners.
According to the Office Memorandum issued by the Finance Ministry on March 12, 2024, here are 6 things regarding the increase in basic salary.
How much will the basic salary increase?
From January 1, 2024, dearness allowance rates for central government employees will increase from 46 percent to 50 percent of the basic pay.
What is basic salary?
The term basic pay in revised pay means the pay drawn at the level prescribed in the pay matrix as per the recommendations of the 7th Pay Commission accepted by the Government, but does not include any other type of pay such as special pay etc. as per the office memorandum. Not included.
DA will remain separate
Dearness Allowance (DA) will continue to be a separate element of remuneration and will not be treated as salary within the scope of FR 9(21).
payment related to fractions
Due to Dearness Allowance (DA), part payments of 50 paise and above may be rounded off to the next higher rupee and those of less than 50 paise may be ignored.
Payment of dues
The outstanding amount of dearness allowance will not be paid before the salary distribution date of March, 2024.
Increase in DA for other government employees
These orders will also apply to civilian employees drawing salaries from Defense Services Estimates and the expenditure will be recovered from the concerned Head of Defense Services Estimates. Separate orders will be issued by the Defense Ministry and Railway Ministry in respect of Armed Forces personnel and Railway employees respectively.
How much will the salary increase after DA increase?
Take the case of a central government employee who gets a basic salary of Rs 45,700 per 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 – Rs 22,850 – Rs 21,022.
There will be a big jump in the salaries of employees
The good news for central government employees is that DA has reached 50 percent. As per the recommendations of the 7th Pay Commission, some other allowances and pay components will also increase once DA reaches 50 percent. This will bring a big jump in the salaries of central government employees.
What happens when DA reaches 50 per cent: Here are the allowances that will increase
House Rent Allowance
Children’s Education Allowance
Special Allowance for Child Care
Hostel Subsidy
TA on Transfer (Transportation of Personal Effects)
Gratuity Limit
Dress Allowance
Mileage Allowance for Own Transport
Daily Allowance
How much will the pension of pensioners increase?
Suppose a Central Government pensioner gets a basic pension of Rs 36,100 per month and at 46 percent DR the pensioner would have got Rs 16,606. As his DR has now increased to 50 per cent, he will get Rs 18,050 every month as dearness relief so his pension will increase by Rs 1,444 per month.
