Mega salary hike for central govt employees as DA to touch 50%: HRA, gratuity, other components will also go up
dearness allowance (DA) hike. Going by the Consumer Price Index for Industrial Workers (CPI-IW) numbers, as published by the Labour Bureau, a wing of the Ministry of Labour, the dearness allowance is likely to increase to 50% for central government employees.
DA is a component of the salary of central government employees. It is aimed at easing the impact of inflation.
Now, if DA hits 50%, certain other allowances and components of the salary will also increase, which will lead to a significant jump in your salary. The 7th Central Pay Commission has made detailed provisions on how DA touching 50% will impact your salary. Let's find out the details here.
HRA, Children's education allowance, daily allowance, other allowances to increase when DA hits 50%
Manmeet Kaur, Partner, Karanjawala & Co, says the allowances that will go up when DA reaches 50% include:
1) House rent allowance
2) Children's education allowance
3) Special allowance for child care
4) Hostel subsidy
5) TA on transfer (transportation of personal effects)
6) Gratuity ceiling
7) Dress allowance
8) Mileage allowance for own transport
9) Daily allowance
For instance, all central government employees get a House Rent Allowance (HRA), depending on where they stay. According to the recommendations of the 7th Pay Commission, HRA has been rationalised to 24%, 16% and 8% of the basic pay for class X, Y and Z cities, respectively, from July 1, 2017. When DA touched 25%, rates of HRA were revised to 27%, 18% and 9% of basic pay in X, Y and Z cities, according
