The dearness allowance (DA) of central government employees and pensioners has been increased by 4 percent. After this increase, DA has become 50 percent. This will lead to a good increase in the salary and pension of central government employees.
Dearness Allowance (DA) has increased by 4 percent for central government employees from January 1, 2024. Along with this, dearness allowance of central government pensioners has also been increased by 4 percent. Due to this, DA and DR have increased to 50 percent for central government employees and central government pensioners.
This increase in DA up to 50 percent of the basic salary of central government employees is expected to increase 13 allowances from January 1, 2024. According to the circular issued by the Employees’ Provident Fund Organization (EPFO) on July 4, 2024, the 13 allowances include House Rent Allowance (HRA), Conveyance Allowance, Hotel Accommodation, Deputation and Split Duty Allowance.
EPFO issued circular
Making an announcement in this regard, EPFO’s circular dated July 4, 2024 said that attention is invited to the following orders issued in the past by the Department of Expenditure/DoPT and it is requested that consequent to the increase in dearness allowance by 4% to 50% from 1st January, 2024, the following allowances, wherever applicable, may be paid at the increased rates of 25% over the existing rates from 1st January, 2024.
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Effect of increasing DA
According to the EPFO circular, the Central Government employees’ basic pay will increase by 25 per cent after the DA hike to 50 per cent of their basic pay. This increase in allowances, such as location allowance, conveyance allowance, special allowance for children of disabled women, children’s education allowance, house rent allowance or HRA, hotel accommodation, travel charges for travel within the city (tourist places), reimbursement of meal charges/lump sum amount or daily allowance, or travel performed by own car/taxi, auto rickshaw, own scooter etc.
To a place where no specific rate has been prescribed by the Transport Director of the concerned State or neighbouring State, rate for transportation of personal effects by road on transfer etc., dress allowance, split duty allowance, and deputation (duty) allowance, will significantly increase the total compensation of Central Government employees.
