Union Cabinet Approves DA Hikes: The Union Cabinet has approved the release of an additional Dearness Allowance (DA) instalment for Central Government employees and Dearness Relief (DR) for pensioners, with effect from January 1, 2024, under the direction of Prime Minister Shri Narendra Modi. In order to counteract the effects of growing costs, cabinet approval means a 4% increase over the present rate of 46% of the Basic Pay/Pension, which is 50%.
Union Cabinet Approves DA Hikes
According to the updated DA Approval, the Cabinet increased the dearness allowance and dearness relief, which would take effect on January 1, 2024. This is an increase from the current rate of 46% of Basic Pay/Pension to 50% as per the 7th Pay Commission, which is the new rate for dearness allowance. This choice is in line with the accepted formula that was developed based on the suggestions made by the 7th Central Pay Commission. Revisions to the DA Allowance usually take place in January and July every year.
Approximatively 49.18 lakh central government employees and 67.95 lakh pensioners stand to gain directly from the move to raise the dearness allowance, according to Cabinet sources. The latest Consumer Price Index for Industrial Workers (CPI-IW), a crucial gauge of national inflation, is used to calculate the dearness payment for central government teachers. Union Cabinet Approves DA Hikes
HRA Hikes
The Central Government has been posting thousands of PGT, TGT, and PRT teaching positions for KVS, DSSSB, and NVS schools. All of the chosen candidates will get pay scales in accordance with the seventh pay commission, along with increased DA of 50%. In line with the 7th Pay Commission, this will also have an effect on HRA allowance. HRA will be changed from 24%, 16%, and 8% to 30%, 20%, and 10% as DA increases to 50%. This action demonstrates the government’s dedication to the welfare of its workers and pensioners as well as their financial security in the face of inflationary pressures. Union Cabinet Approves DA Hikes
There will also be a 25% increase in the allowances for deputations, canteens, and transportation. In addition, benefits under gratuity would increase by 25%, with the existing Rs. 20 lakh cap being lifted to Rs. 25 lakh. The Center is expected to need to provide financing for this project every year in the amount of Rs. 9,400 crore. Union Cabinet Approves DA Hikes
The government’s efforts to protect the financial security of its workers and provide them with stability and confidence to face the challenges presented by economic volatility are demonstrated by the decision to raise dearness allowance. The lives of central government employees and retirees nationwide are expected to improve as a result of this proactive action. Union Cabinet Approves DA Hikes