The dearness allowance (DA) for central government employees has been hiked by 3%, the Union Cabinet announced on October 16, 2024. Dearness relief (DR) has also been increased by 3% for the central government pensioners. With the latest hike, DA and DR are now 53% for central government employees and pensioners. This move will benefit more than 1 crore central government employees and pensioners.
When is the increased DA expected to be received by central government employees, and by how much will the salaries of central government employees increase? ET Wealth Online answers all your queries.
DA hiked by 3% today: When will central government employees, pensioners start receiving increased DA?
The increased DA and DR are effective from July 1, 2024. The Union government revises DA twice a year, in January and July. However, the official announcements are typically made later. So, the DA/DR hike is implemented retrospectively from the cut-off date, i.e., July 1, 2024.
Following the announcement of the dearness allowance hike on October 16, 2024, central government employees will receive the increased DA starting with October's salary. In addition, they will be eligible for arrears for the previous three months — July, August and September.
DA hiked to 53%: How much will the salary increase for central government employees from October 2024?
Dearness allowance is a component of the salary of government employees and pensioners. So when DA rises, the take-home salary of central government employees will also go up. Here's the calculation to understand how the salary of central government employees will increase after the recent DA hike:
DA is calculated on the basic salary of the central government employees. The term basic pay in the revised pay structure means the pay drawn in the prescribed level in the Pay Matrix as per 7th CPC recommendations accepted by the government.
Let's assume that a central government employee gets a basic pay of Rs 46,200. Earlier at 50%, his dearness allowance was Rs 23,100. With dearness allowances hiked to 53%, his dearness allowance will rise to Rs 24,486. So he will get Rs 1,386 (Rs 24,486-Rs 23,100) more in DA from October. As the DA hike is applicable from July 1, 2024, he will get arrears for the last three months.
DR hiked to 53%: How much will the pension increase for central government pensioners from October 2024?
Similar to the dearness allowance, the dearness relief, applicable for central government pensioners, has been raised by 3%. This brings the dearness relief to 53%. How much will the monthly pension increase for these pensioners following the DR hike?
Similar to the dearness allowance, the dearness relief for central government pensioners has been raised by 4%. This brings the total dearness relief to 50%. How much will the monthly pension increase for these pensioners?
Suppose a central government pensioner gets a basic pension of Rs 50,400 per month. At 50% DR, the pensioner used to get Rs 25,200. His DR is now raised to 53%, so he will get Rs 26,712 monthly as dearness relief. So, his pension will rise by Rs 1,512 per month.
When is the increased DA expected to be received by central government employees, and by how much will the salaries of central government employees increase? ET Wealth Online answers all your queries.
DA hiked by 3% today: When will central government employees, pensioners start receiving increased DA?
The increased DA and DR are effective from July 1, 2024. The Union government revises DA twice a year, in January and July. However, the official announcements are typically made later. So, the DA/DR hike is implemented retrospectively from the cut-off date, i.e., July 1, 2024.
Following the announcement of the dearness allowance hike on October 16, 2024, central government employees will receive the increased DA starting with October's salary. In addition, they will be eligible for arrears for the previous three months — July, August and September.
DA hiked to 53%: How much will the salary increase for central government employees from October 2024?
Dearness allowance is a component of the salary of government employees and pensioners. So when DA rises, the take-home salary of central government employees will also go up. Here's the calculation to understand how the salary of central government employees will increase after the recent DA hike:
DA is calculated on the basic salary of the central government employees. The term basic pay in the revised pay structure means the pay drawn in the prescribed level in the Pay Matrix as per 7th CPC recommendations accepted by the government.
Let's assume that a central government employee gets a basic pay of Rs 46,200. Earlier at 50%, his dearness allowance was Rs 23,100. With dearness allowances hiked to 53%, his dearness allowance will rise to Rs 24,486. So he will get Rs 1,386 (Rs 24,486-Rs 23,100) more in DA from October. As the DA hike is applicable from July 1, 2024, he will get arrears for the last three months.
DR hiked to 53%: How much will the pension increase for central government pensioners from October 2024?
Similar to the dearness allowance, the dearness relief, applicable for central government pensioners, has been raised by 3%. This brings the dearness relief to 53%. How much will the monthly pension increase for these pensioners following the DR hike?
Similar to the dearness allowance, the dearness relief for central government pensioners has been raised by 4%. This brings the total dearness relief to 50%. How much will the monthly pension increase for these pensioners?
Suppose a central government pensioner gets a basic pension of Rs 50,400 per month. At 50% DR, the pensioner used to get Rs 25,200. His DR is now raised to 53%, so he will get Rs 26,712 monthly as dearness relief. So, his pension will rise by Rs 1,512 per month.
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