Dearness Allowance (DA) constitutes one of the primary sources of income for both central employees and pensioners, which is revised every six months for the effects of inflation to be diminished. Effective January 2024, Dearness Allowance will further increase by 4%, bringing it to 50%. This increase will also be seen in a lot of other transformations from this date regarding the salaries and pensions of employees and retired individuals.
Dearness Allowance and its effect on salary
With the rise of DA, salary structure of central employees will witness a remarkable increase. An example is that, on the example of an employee whose basic monthly salary was Rs 45,700, he was earlier drawing Rs 21,022 as the DA at 46%. Now, with his DA being changed to 50%, he will get Rs 22,850, which translates to an increase of Rs 1,828 in his total salary.
And this increase is not related only to DA. According to the directives issued by the government, once it reaches 50%, then all other allowances, like house rent (HRA), children education allowance (CEA), transfer allowance etc., are increased by 25%. For sample, CEA will move from Rs 2812.5 month now to Rs 3515.6.
DA New Rates Table 2024
The new rates of DA are given in the table below:
| From which Payable | Rate | Status |
|---|---|---|
| 1st Jan 2024 | 50% | Released |
| 1st July 2023 | 46% | Released |
| 1st Jan 2023 | 42% | Released |
| 1st July 2022 | 38% | Released |
| 1st Jan 2022 | 34% | Released |
| 1st July 2021 | 31% | Released |
| 1st July 2019 | 17% | Released |
| 1st Jan 2019 | 12% | Released |
Affected allowances due to alteration in dearness allowance
As stated above, the increase in dearness allowance has triggered the automatic increase of other allowances once it reaches 50%. The allowances which are now being influenced by the increased dearness allowance are:
- House Rent Allowance (HRA) – There will now be 25% enhancement in this allowance.
- Children Education Allowance (CEA) – Same goes with this allowance, it will also increase by 25%.
- Special Allowance for Child Care – Increased Special Child Care Allowance will also be applicable to the women.
- Hostel Subsidy – This will be seen increased as well, and that is 25%.
The Dearness Allowance Revision Probability
Now-the dearness allowance is increased to 50%. The government can revise this amount in the future for the sake of inflation. This too will refer to the per Indian Rupee earned through the Consumer Price Index (CPI-IW) of the Ministry of Labor. As per the views of some experts, It may be increased by another 3% in July 2024 resulting in an increase of 53%.
This increase in dearness allowance has brought immense relief to central employees and pensioners. Their salary will become suffused and improve other allowances thus improving their financial standing. However, still awaiting the formal announcement by the government.
