Budget 2024: Central government employees are expected to increase dearness allowance. Central government employees are likely to get a 4% DA hike. It is expected that the government may announce an increase in Dearness Allowance (DA) after the budget or on the day of the budget.
Budget 2024: Central government employees are expected to increase dearness allowance. Central government employees are likely to get a 4% DA hike. It is expected that the government may announce an increase in Dearness Allowance (DA) after the budget or on the day of the budget. The interim budget in the country will be presented on 1 February 2024 and now 10 days are left for it.
New dearness allowance will be applicable from January 1, 2024
When the government announces 4 percent DA increase, this new increase will be considered effective from January 1, 2024. It is expected that the government may announce this around the budget. With the increase in DA, dearness allowance of central government employees is expected to increase by 50 percent. Currently, under the 7th Pay Commission, dearness allowance is 46 percent. Now after the new increase it may increase to 50 percent.
What is dearness allowance?
Dearness Allowance is a part of the salary which is generally given by the Central Government to the employees to reduce the impact of inflation. This increases the salary of the employees. DA is usually revised twice a year. DA increase is usually announced around March and September. This revision is applicable from January 1 and July 1.
DA will become zero once it reaches 50 percent
The rule of dearness allowance is that in the year 2016, when the government implemented the 7th Pay Commission, then dearness allowance was reduced to zero. According to the rules, as soon as the dearness allowance reaches 50 percent, it will be reduced to zero and the amount of allowance given to the employees at the rate of 50 percent will be added to the basic salary. If the basic salary of an employee is Rs 18000 then he will get Rs 9000 of 50% DA. But, when DA becomes 50 percent, it will be added to the basic salary and again dearness allowance will become zero.
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