govt employees

Special Gifts to Govt Employees and Pensioners alongwith 50% DA in 2024

As per the Consumer Price Index published in the Govt portal,  the central government is expected to raise its employees’ dearness allowance (DA)  and Pensioners  Dearness Relief (DR) by 4% for the six months starting from 1st day of January 2024. This announcement is likely to be made as usual in March 2024, and the increase will be effective from January 1, 2024. Arrears in this effect will be paid to pensioners and employees in the month of March or April 2024.

As of January 2024, the DA/DR of Central Government Employees/ Pensioners will increase to 50%. This means there will be a 4% hike in the DA/DR  rate. Currently the DA of employees and pensioners is 46 percent.  It has been also revealed that, according to the recommendations of 7th CPC, other several allowances alo will be revised simultaneously as the DA rate touch the limit of 50%.

Calculation of DA is as under – This calculation is done according to a specific formula applicable to both employees and pensioners of the central government.

7th CPC DA% = [{12 month average of AICPI-IW (Base Year 2001=100) for the last 12 months – 261.42}/261.42×100]

Some Allowances also will be increased along with the DA/DR are as below for the Central Govt Employees.

As soon as DA increases to 50%, all these elements will increase. of which a few are described here.

(1) Children Education Allowance (CEA)
(2) Special Allowance for Child Care
(3) Retirement Gratuity
(4) Composite Transfer Grant
(5) Cash handling allowance
(6) HRA (House Rent Allowance)

Revised HRA : HRA rate for the Central Govt employees has been reduced during 7th CPC with a provision to increase the rate alongwith increase of DA percentage.  Once DA/DR is increased to 50%, HRA rate will also be increased by 3%, 2% and 1% for class X, Y and Z cities respectively.

Revised CTG : this allowance will also be revised with increase  of DA percentage.

CEA  : This allowance will also be revised with increase of DA percentage.  Presently it is applicable @ Rs 27000/- per child. In terms of the recommendations of the 7th Central Pay Commission related to grant of children education allowance, the rate of children education allowance would be automatically raised by 25% every time the Dearness Allowance on the revised pay structure goes up by 50%.

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