DA 50% – Allowances and Salary Components to be hiked from Jan 2024 for Central Govt Employees!

In this article, we will delve into the specific details of the allowances that will see an increase alongside the rise in the basic s​alary, as determined by the central government. Moreover, we will​ provide insights​ int​o how the Dearness Allowance ​(DA) will contribute to augmenting the salaries and allowances of government employees by more than 50 percent.

Jan 2024 DA Announcement

The announcement regarding the next installment of DA hike is expected to be made in January 2024, with hopes that it will surpass the 50 percent threshold. As per the recommendations put forth by the 7th Central Pay Commission, certain allowances are proposed to be raised by 25 percent once the DA rate reaches 50 percent.

July 2021 DA Over 25%

It is worth mentioning that back in July 2021, when the dearness rate exceeded 25 percent, specific allowances were increased in accordance with the recommendations of the 7th CPC. Through this a​rticle, we aim to elucidate the various allowances and salary components that will experience an enhancement for central government employees starting from January 1, 2024.

Dearness Allowance Over 50%

As of July 1st, 2023, all Central Government employees, pensioners, and family pensioners, including Armed Forces Personnel, are currently receiving a Dearness Allowance equivalent to 46% of their basic pay. However, t​here is positive news on the horizon as it is expected that the Dearness Allowance will be raised to over 50% starting from January 1st, 2024. The Dearness Allowance plays a crucial role in the overall salary package, and this significant increase will greatly contribute to a substantial hike in salaries. A remarkable increase of 4% of the basic pay across all employee categories is certainly noteworthy. Therefore, both current and retired Central Government staff eagerly await the forthcoming announcement with anticipation!

Revision of Allowances after DA 50%

Government employees often wonder about the implications when the Dearness Allowance (DA) surpasses 50%. They question how it will affect their salary components. In this segment, we aim to address these inquiries by focusing primarily on major allowances.

Should the DA exceed the significant benchmark of 50% by January 2024, there is a potential for an immediate revision to the following allowances, which would result in a 25% increase from their present state:

1. House Rent Allowance
2. Children Education Allowance
3. Daily Allowance (TA/DA)
4. Special Child Care Allowance
5. Clothing Dress Uniform Allowance
6. Conveyance Allowance (For Doctors)
7. Detachment Allowance (CAPF Troops)
8. Field Area Allowance (CAPF & ICG Troops)
9. Antarctica Allowance
10. Hospital Patient Care Allowance
11. Patient Care Allowance
12. Professional Update Allowance