It is expected that in view of inflation, the government may increase the inflation rate by 4 to 5 percent. If the government increases DA by 5 percent, then on July 1, the DA of the employees will increase to 55 percent. Central government employees currently get 50 percent dearness allowance (DA). This will come into effect from January 2024. The next increase in dearness allowance will be applicable from July 2024. However, it may take September until it is approved. If we look at last year's record, the government can announce increase in DA by September. But, it will be implemented from July only.
The government has approved a 4 percent increase in dearness allowance from January 1, 2024. Now these 6 allowances of government employees will also be increased soon. The Department of Personnel and Training (DoPT) has issued instructions vide an office memorandum dated April 2, 2024 to waive the allowances drawn by Central Government employees. As per its 2016 assessment and recommendations, the 7th Pay Commission examined the benefits provided to central government employees including railway employees, civil defense personnel and defense personnel. These are the allowances applicable to Central Government employees.
dearness allowance
house rent allowance
conveyance allowance
children's education allowance
traveling allowance during tour
deputation allowance
Fixed Medical Allowance for Pensioners
high qualification allowance
leave travel cash
drop cash
non practicing allowance
House Rent Allowance (HRA)
When DA reaches 50%, the government has revised the HRA rates in cities X, Y and Z to 30%, 20% and 10% of basic pay respectively. House rent allowance given to employees depends on the category of the city. In which they live. The HRA for X, Y and Z type cities was 27%, 18% and 9% respectively, which has been increased to 30%, 20% and 10%.