As we approach the start of the new year, 2024 holds exciting news for central government employees.
There are two positive updates: the Dearness Allowance (DA) and House Rent Allowance (HRA) are expected to increase.
DA Increase: The DA, currently at 46 percent, is likely to rise by 4 to 5 percent from January to June.
If it increases by 4 percent, the DA will reach 50 percent. Reports suggest a potential 5 percent increase, pushing it to 51 percent.
HRA Revision: When the DA for central employees reaches 50 percent or more, the HRA will be revised.
The Seventh Pay Commission recommends this adjustment. HRA is categorized into X, Y, and Z based on the city.
HRA Increase: Presently, employees in X, Y, and Z cities/towns receive 27%, 18%, and 9% HRA respectively.
Following the increase, those in X cities/towns will get 30%, Y category 20%, and Z category 10% HRA.
This, coupled with the DA increase, will significantly boost central employees’ salaries.
Announcement Timeline: Typically, the government announces DA increases in March, effective from January to June.
The announcement for July to December is made in October. This means government employees receive increased allowances twice a year, on a half-yearly basis.
In summary, the approaching new year brings promising news for central government employees with expected increases in both Dearness Allowance and House Rent Allowance.
