Good news is on the way! In the beginning of the year 2024, good news awaits government workers.
Their dearness allowance (DA) is set to increase and go beyond 50%. Currently, they receive a dearness allowance of 46%.
However, with the upcoming increase in DA, other allowances for employees will also go up by 3%. This could result in a significant boost in their overall salary.
There will be a 3% rise in allowances
Besides the dearness allowance, government employees receive various allowances, including House Rent Allowance (HRA).
The government has clarified the rules related to this increase, specifically linked to the dearness allowance.
In 2021, there was a revision in HRA when the dearness allowance crossed 25%.
In July 2021, as soon as the DA surpassed 25%, there was a 3% increase in HRA. The current rates for HRA are 27%, 18%, and 9%.
Now, we have to anticipate the increase in dearness allowance, and if it reaches 50% in the new year, there will be another 3% revision in HRA.
Employees will benefit from the increase in HRA
As per the Department of Personnel and Training (DoPT), the revision in House Rent Allowance (HRA) for government employees is based on the dearness allowance.
All employees are set to benefit from the increased HRA. HRA rates are determined according to the city category, with rates set at 27%, 18%, and 9%.
The government issued a memorandum in 2015 linking HRA to DA, with fixed rates of 0%, 25%, and 50%