
The Centre is set to provide a generous Holi gift to its employees during this festive season, as per report. Following a recent increase in Dearness Allowance (DA), Central government employees can expect a raise in their salary, House Rent Allowance (HRA), and arrears for two months on March 30.
Due to the holiday on March 31, which falls on a Sunday, it is anticipated that the increased salary for central employees will be disbursed on March 30. However, the Reserve Bank of India has instructed all banks to remain open on Sunday, March 31, as it marks the end of the current fiscal year.
Earlier in the month, the Central government had announced a 4 percent rise in DA for central employees, effective from January 2024, bringing the total DA hike from 46 percent to 50 percent. This increase in DA also results in corresponding adjustments to House Rent Allowance (HRA), with employees potentially receiving up to 30 percent HRA based on their city’s categorization.
In addition to the DA hike, special allowances such as childcare allowance, child education allowance, hostel subsidy, travel allowance on transfer, dress allowance, gratuity ceiling, and mileage allowance are also expected to increase for central employees. However, it is important for employees to claim these allowances as per the guidelines.
It’s worth noting that the increase in DA for Central government employees is based on the latest Consumer Price Index for Industrial Workers (CPI-IW), released monthly by the Labour Bureau. This increase follows the accepted formula, in accordance with the recommendations of the 7th Central Pay Commission.
The decision to raise DA by 4% in March has positively impacted 48.67 lakh central government employees and 67.95 lakh pensioners. Prior to this, Diwali bonuses were also granted to Group C and non-gazetted Group B level officials, including paramilitary forces, by the government.
How Much Salary Hike Will Central Govt Employees Get?
Since the government has announced a 4 per cent DA hike, how much is the salary hike likely for central government employees? If somebody’s salary is Rs 50,000 per month and has Rs 15,000 as the basic pay. He or she currently gets Rs 6,900, which is 46 per cent of the basic pay. However, after the 4 per cent hike, the employee will get Rs 7,500 per month, which is Rs 600 higher as compared with Rs 6,900 earlier. So, if someone has a Rs 50,000 salary a month with Rs 15,000 as the basic pay, his or her salary will rise by Rs 600 per month.
How Does Govt Calculate DA Hike?
The DA and DR hike is decided based on the percentage increase in 12 monthly average of the All-India CPI-IW. Though the central government revises the allowances on January 1 and July 1 every year, the decision is generally announced in March and September/October. In 2006, the central government had revised the formula to calculate the DA and DR for central government employees and pensioners.
Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 12 months -115.76)/115.76)x100.
For Central public sector employees: Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 3 months -126.33)/126.33)x100.
Salaries to central government employees are paid on or after first April every year due to fiscal rules. Writing big articles without this much preliminary knowledge is surprising.
Kindly refrain from commenting unless you have complete knowledge. Employees of most of the autonomous bodies, who draw their salaries from their respective ministries, are paid before the end of the month.
Though Salaries are paid to central government employees before the end of the month except in the month of March every year salaries are paid on & after 1st April.
Ist Apr being the closing day, the salary will be disbursed on 2nd of April.