7th Pay Commission: Every time the DA hike touches 50%, children’s education allowance will be increased by 25%, according to recommendations of the 7th Pay Commission.
7th Pay Commission Latest News Today: March is a month of good news for the Central government employees. Apart from the regular DA hike, other increments such as HRA, Education Allowance, Gratuity are also likely to increase for them in March 2024. These Central government employees are eagerly waiting for their dearness allowance (DA) hike this month. If you go by the Consumer Price Index for Industrial Workers (CPI-IW) numbers, the dearness allowance is likely to increase to 50% for central government employees.
Earlier reports suggested that the Central government employees are likely to get 4% DA hike in March 2024. With 4% DA hike, the total DA will reach 50% this time and if the DA hits 50%, certain other allowances and components of the salary will also increase, which will lead to a significant jump in the salary of the Central government employees. The 7th Central Pay Commission earlier made a detailed provisions on how DA touching 50% will impact the salary. Find out here.
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If the DA hike reaches 50%, then the following allowance for government employees will increase:
- House Rent Allowance
- children’s education allowance
- Special Allowance For Childcare
- Hostel Subsidy
- Transportation Of Personal Effects
- Gratuity
- Dress Allowance
- Mileage Allowance For Own Transport
- Daily Allowance
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How Much Will Your HRA Increase?
In general, the central government employees get House Rent Allowance (HRA), depending on the category of the city they live in. As per 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. It should be noted that when the DA hike touched 25%, rates of HRA were revised to 27%, 18% and 9% of basic pay in X, Y and Z cities.
How Much Education Allowance Will Increase?
Every time the DA hike touches 50%, children’s education allowance will be increased by 25%, according to recommendations of the 7th Pay Commission. If a central government employee gets Rs 2,250 per month as children’s education allowance, it will rise to Rs 2,812.5 per month when DA hits 50%.
How Much Gratuity, Dress Allowance Will Increase?
In the similar manner, several other components such as special allowance for childcare, gratuity ceiling, dress allowance and daily allowance will be increased by 25% when DA hike touches 50%. However, these increments depend on the components of the salary and the hike will vary according to pay level.
