Centre Announces Dearness Allowance Hike. What Is It And How To Calculate
NDTV
Considering both DA and DR and the increase in other allowances, it's going to cost the exchequer an estimated Rs 15,000 crore for January and February in the fiscal year 2024.
The Centre has approved a 4% increase in Dearness Allowance (DA) and Dearness Relief (DR), bringing the total DA to 50% of the basic salary for central government employees and pensioners. This decision also includes a 25% increase in transport, deputation, and canteen allowances.
The move, announced by Commerce Minister Piyush Goyal in a press conference, is expected to benefit 49.18 lakh central government employees and 67.95 lakh pensioners. Considering both DA and DR and the increase in other allowances, it's going to cost the exchequer an estimated Rs 15,000 crore for January and February in the fiscal year 2024, reported The Hindu.
As part of the revision, various allowances such as Housing Rent Allowances (HRA), Children's Education and Transport Allowances, and gratuities will see an increase based on the formula recommended by the 7th Pay Commission. Employees and pensioners will receive arrears for January and February, along with the revised rates for March.
