The Dearness Allowance (DA) for central government employees and Central Autonomous Bodies under the 6th Pay Commission will be increased, effective July 1, 2024, as per the latest Ministry of Finance update.
6th Pay Commission Update: The Dearness Allowance (DA) for central government employees and employees of Central Autonomous Bodies, who are still receiving their emoluments as per the old pay scale under the 6th Pay Commission, will increase from 239% to 246% of their basic salary. This change will take effect from July 1, 2024, according to an Office Memorandum (OM) issued by the Department of Expenditure, Ministry of Finance.
Read More: 5 types of SIPs one should know about and when to choose them to meet your financial goals
The Ministry has confirmed that the provisions from earlier office memorandums regarding the regulation of DA will continue to apply under this new update.
Government departments and organizations that follow Central Government pay scales have been instructed to ensure that this information is communicated to all concerned employees.
“The contents of this Office Memorandum may also be brought to the notice of all organisations under the administrative control of the Ministries/Departments which have adopted the Central Government scales of pay,” the circular said.
Read More: SCSS Interest Rate 2024: Secure 8% Returns for Senior Citizens
Which central govt employees are covered under the 6th Pay Commission?
Employees of Central Autonomous Bodies and Public Sector Undertakings (PSUs) and some central government civilian employees are still covered under the 6th Pay Commission provisions.
Read More: How to build ₹16 lakh in a Sukanya Samriddhi Account by saving ₹100 a day
DA hike under 7th Pay Commission:
The Centre last month hiked the DA for over 1 crore central government employees and pensioners by 3% to 53% of the basic pay. The Centre hikes DA twice a year, effective from January 1 and July 1.
The next DA hike is due from January 1, 2025. However, the announcement is likely to be made in March, as has been the case in the past.