DA hike news: After the announcement of a 4 percent Dearness Allowance (DA) for the central government employees effective from 1st January 2024 and the subsequent rise of the Dearness Relief of 4 percent to the pensioners of the central government, the DA and DR for the central government employees and central government pensioners has touched 50 percent. This rise in DA to 50 percent of the basic salary of the central government employees is expected to increase 13 allowances effective from 1st January 2024. The latest circular released by the Employees’ Provident Fund Organisation (EPFO) dated 4th July 2024. The EPFO circular says that the 13 allowances include House Rent Allowance (HRA), Conveyance Allowance, Hotel Accommodation, Deputation, and Split Duty Allowance.
The EPFO circular dated 4th July 2024 announced in this regard, saying, “Attention is drawn to the following orders issued by Department of Expenditure/DoPT in the past and request that consequent upon the increase of Dearness Allowance by 4% to 50% w.e.f. 01.01.2024, the payments of the following allowances whereever applicable may be made at enhanced rates of 25% over the existing rates w.e.f. 01.01.2024.”
DA hike effect
The EPFO circular further details the allowances that will see a 25 percent increase, following the DA surge to 50 percent of the basic salary of the central government employees. This increase in allowances, such as Touch Location Allowance, Conveyance Allowance, Special Allowance for children of women with disabilities, Children education allowance, House Rent Allowance or HRA, Hotel Accommodation, Reimbursement of Traveling charges for travel within the city (touring station), Reimbursement of Food Charges/ Lump sum amount or Daily Allowance, or journeys performed by own Car/taxi, Auto rickshaw, own Scooter etc. at the place where no specific rate has been prescribed by Director of Transport of concerned State or the neighbouring State, Rate of 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 the central government employees.
As per the 7th Pay Commission (7th CPC) rules, which have been accepted by the central government, when the DA reaches 50 percent of the basic salary, the allowance rates are set to increase to 24 percent. This rule, designed to ensure fair compensation, is a testament to our commitment to your well-being and security in these challenging times.