Central government employees and pensioners have received a hike in their salaries and pensions. Their DA and DR have increased by 4% to 50%. This hike linked to the 7th Pay Commission will affect several allowances including HRA, TLA and children’s education allowance. Let’s know about them here.
DA Allowances 2024: Giving a big relief to the central government employees, their dearness allowance (DA) has been increased by 4 percent. After this increase, DA has become 50 percent. To provide relief from rising inflation, Dearness Relief (DR) for retired central government employees has also been increased by 4 percent to 50 percent. This will lead to a good increase in the salary and pension of central government employees.
This increase is effective from January 1, 2024. After the DA touches the figure of 50 percent, some other allowances will also increase. These allowances include House Rent Allowance (HRA). According to the circular issued by the Department of Personnel and Training on July 4, 2024, ‘On the increase of 4% in dearness allowance to 50% from January 1, 2024, the following allowances can be paid at the rates of 25 per cent of the existing rates from January 1, 2024, wherever applicable.’
When the dearness allowance payable on the revised pay structure goes up to 50 per cent, the rates of allowance increase by 25 per cent. Here are some of the allowances that will now see a 25 per cent increase after the DA increases to 50 per cent. The increased rates for these allowances will be effective from January 1, 2024.
Tough Location Allowance
The Tough Location Allowance, also known as ‘Difficult Location Allowance’, is an additional pay allowance given to employees who are posted in remote or difficult locations. It is intended to help meet the cost of living for employees working in difficult conditions. The areas covered under TLA are divided into three categories.
Conveyance Allowance
The Ministry of Finance has updated its list of grants and allowances for central government employees in July 2017. The implementation of the Seventh Pay Commission was closely linked to this.
Special Allowance for Women with Disabled Children
In order to provide additional benefit to women employees having children with disabilities and particularly young children, it has been decided that a special allowance of Rs.3000/- per month shall be paid on account of child care. The allowance shall be payable from the time of birth of the child till the child attains the age of two years.
Children Education Allowance
CEA/Hostel subsidy can be availed only for the two eldest children. The amount of hostel subsidy is Rs.6750/- per month.
Reimbursement of CEA for disabled children of Government servant shall be payable at twice the normal rate of CEA i.e. Rs.4500/- per month. In a case where the disabled child is not able to attend school, reimbursement of CEA for receiving education/special education at the place of residence shall be at twice the normal rates of CEA, provided receipt of payment is produced by the teacher. The rate of CEA shall be increased by 25% every time there is a 50% increase in DA on revised pay structure. CEA and hostel subsidy is admissible in respect of children studying from three classes prior to class one to class XII.
House Rent Allowance
- Hotel Accommodation
- Reimbursement of travel charges for intra-city travel or Daily Allowance
- Allowance for journeys performed by own car/taxi, auto rickshaw, own scooter etc.
- Reimbursement of food charges/lump sum or daily allowance
- Rate for transportation of personal effects by road on transfer etc.
- Dress Allowance
- Split Duty Allowance
- Deputation (Duty) Allowance
What is Dearness Allowance?
Dearness Allowance is a component of the salary of government employees and pensioners. It is given to help government employees cope with rising inflation. This allowance acts as a buffer against rising prices. It effectively increases the take home pay of government employees and pensioners. The DA is reviewed by the Central Government twice a year, in January and July. It is important to note that the amount varies depending on the location of the employee.
