central government has recently increased the dearness allowance (DA) for central employees by 3%. When the dearness allowance reached 50%, the government increased many other subsidies, which increased the salaries of central government employees. Now that the dearness allowance is 53%, will the government also increase other subsidies like before? Let us know.
Central employees receive these subsidies:
Housing rental allowance or HRA, location allowance, transportation allowance, special allowance for children of women with disabilities, child education allowance, hotel stay allowance, reimbursement for intra-city travel, daily allowance, allowance for clothing, etc. Additionally, the maximum limit of retirement gratuity and death gratuity has been increased by 25% from Rs 20 lakh to Rs 25 lakh, effective January 1, 2024.
Now DA has reached 53%: will allocations increase this time too?
Experts say there will be no increase in central employees' allowances this time. This is because under the 7th Central Pay Commission, a new system has evolved wherein other allowances do not automatically increase once the 50% DA limit is crossed. In simple words, without an official notification or policy from the Government of India, there will be no review of allocations like HRA even if the DA reaches the level of 53%.
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