DA Hike BIG Gift: 13 Allowances Of Central Govt Employees To Increase By 25% As Dearness Allowance Touches 50%
DA Hike News: The recent announcement of a 4 percent Dearness Allowance (DA) for central government employees, effective from 1st January 2024, has brought the total DA and Dearness Relief (DR) for pensioners to 50 percent. This significant increase is expected to impact various allowances linked to the basic salary of employees. The rise in DA to 50 percent is projected to enhance 13 different allowances, which will come into effect from the beginning of the new year. The Employees’ Provident Fund Organisation (EPFO) issued a circular on 4th July 2024, detailing the allowances that will be affected. Among the 13 allowances mentioned in the circular are 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.”
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
Deputation (Duty) Allowance, will significantly increase the total compensation of the central government employees.
Tough Location Allowance
The government has consolidated geographical allowances like Special Compensatory (Remote Locality) Allowance (SCRLA), Sunderban Allowance, and Tribal Area Allowance into Tough Location Allowance (TLA). TLA now encompasses regions categorized into three groups. Tariffs ranging from Rs.1000 to Rs.5300 per month will be set based on the R&H Matrix cells. This move aims to streamline and simplify the allowance system, ensuring equitable compensation for employees in challenging locations.
Conveyance Allowance
The Ministry of Finance updated its list of grants and allowances for employees in the Central Government in July 2017. The implementation of the Seventh Pay Commission, or 7 CPC, was closely related to this.
Special Allowance for child of women with disabilities
A new policy has been introduced to support women with disabilities who have young children or children with disabilities. These women will receive a monthly Special Allowance of Rs. 3000 for child care from the child’s birth until they turn two. Additionally, the allowance will increase by 25% whenever the Dearness Allowance on the revised pay structure rises by 50%.
Children Education Allowance (CEA)
Following the 7th CPC recommendations, the CEA includes benefits such as:
CEA/Hostel Subsidy for the two eldest surviving children.
Hostel Subsidy of Rs. 6750 per month.
Double CEA for Divyang Children, amounting to Rs. 4500 per month.
Reimbursement for special education at home for Divyang Children if they cannot attend school.
A 25% rise in the CEA rate every time the DA on the revised pay structure reaches 50%.
Understanding dearness allowance
Dearness Allowance (DA) is a crucial element of the salary for government employees and pensioners, introduced to combat the impact of inflation. DA serves as a shield against escalating prices, augmenting the take-home pay for government staff and pensioners, providing financial relief.
The Union government revisits DA biannually, in January and July, to ensure its alignment with economic conditions. It’s noteworthy that the DA amount varies based on the employee’s geographical location, reflecting the diverse cost of living across regions.
