Central government has recently increased the Dearness Allowance (DA) for central employees by 3%. When dearness allowance reached 50%, the government increased many other allowances, which increased the salaries of central government employees. Now that dearness allowance is at 53%, will the government also increase other allowances like before? Let us know.
Central employees get these allowances:
House Rent Allowance or HRA, Location Allowance, Conveyance Allowance, Special Allowance for Children of Women with Disabilities, Children's Education Allowance, Hotel Stay Allowance, Reimbursement for intra-city travel, Daily Allowance, Dress Allowance etc. Additionally, the maximum limit of retirement gratuity and death gratuity has been increased by 25% from Rs 20 lakh to Rs 25 lakh, effective January 1, 2024.
Now DA reached 53%: Will the allowances increase this time too?
Experts say that this time there will be no increase in the allowances of central employees. This is because under the 7th Central Pay Commission, a new system has evolved where other allowances do not automatically increase once the 50% DA limit is crossed. In simple words, without an official notification or policy of the Government of India, there will be no revision in allowances like HRA, even if DA touches the level of 53%.
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