7th Pay Commission: Reports suggested that after the results of the Lok Sabha Elections 2024 are announced on June 4, the DA of the central employees will increase from the very next month — from July 1, 2024.
7th Pay Commission Latest News: After the recent hike in Dearness Allowance (DA) in March, it is now time for another DA hike for the Central government employees. A report by Live Hindustan claimed the crores of central government employees are going to get a piece of good news on DA hike after the Lok Sabha Elections 2024 concludes.
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The report suggested that after the results of the Lok Sabha Elections 2024 are announced on June 4, the DA of the central employees will increase from the very next month — from July 1, 2024. Apart from this, the dearness relief (DR) of central government pensioners will also increase.
However, as per the past trends, the DA hike is expected to be announced in September or October and it will be effective from July 1.
As per the recommendations of the 7th Pay Commission, the Central government announces DA hike twice a year – once in March which will be effective from January and another one in October which wil be effective from January.
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Central Govt Employee’s DA Hiked in March 2024
The Central Government had in March 2024 increased the dearness allowance and dearness relief by 4%. With this increase, the DA of central employees increased to 50%, providing various reliefs on different fronts to lakhs of central government employees and pensioners across the country.
Salary Hike: Changes in HRA and Gratuity
As the DA reached 50%, there was a change in the salary structure of central employees. As part of this, the House Rent Allowance (HRA) for central employees was also increased. In another important change, the tax exemption limit on gratuity was also increased from Rs 20 lakh to Rs 25 lakh. This means in case of retirement or death of an employee, their family can receive a higher gratuity amount, ensuring better financial stability.
Apart from this, other allowances like Children’s Education Allowance (CEA) and Hostel Subsidy were also revised by 25%. With these changes, the Central government employees can now claim a fixed amount of Rs 2,812.5 per month for CEA allowance. Employees can also get a subsidy of Rs 8,437.5 per month for hostel expenses.
