Employee Allowance Increase 2024: DA Hike Plus Additional Benefits Complete Details Here

Employee Allowance Increase 2024: DA Hike Plus Additional Benefits Complete Details Here

The government has decided to increase the Dearness Allowance (DA) by 4%. The government has revised the Dearness Allowance for its employees. This decision was taken on May 7, 2024. This will increase the Dearness Allowance to 50% of the basic salary, this means that more money will be provided for Central Government employees after their retirement and they will also get some extra benefits. This new allowance will be effective from January 1, 2024.

The Department of Personnel and Training (DoPT) has stated that the notification regarding this decision was released in April, which specifies that gratuity has also been raised for central government employees. Under this directive, an automatic 25% increase in the children’s education allowance, hostel subsidy, retirement gratuity, and gratitude will also be added.

This increment in gratuity and other allowances will be provided whenever DA (Dearness Allowance) reaches 50% of the basic salary due to increments.

As stated, when DA is increased by 50% of basic pay, the retirement and death gratuity will also rise by 25%. This means that from January 1, retirement and death gratuity will increase from the existing 20 lakhs to 25 lakhs, which is a 25% increase.

The Department of Pension and Pensioners’ Welfare released the notification regarding this. This allowance will ensure that Central Government employees will have financial security even after retirement and will help their families and change their cost of living. An important thing to note is that Dearness Allowance will be provided to Government employees, while death Relief (DR) will be given to pensioners.

Dearness allowance and Dearness Relief usually will be revised twice a year, which is based on the percentage increase in the All India Consumer Price Index for Industrial Workers. The revision takes place in January, with announcements made in March or April, and again in September or October.

Additionally, the central government has restructured the formula for calculating DA and DR for Government employees and also for pensioners, which will provide flexibility and a fair transfer and system for adjusting their allowance.

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