Dearness Allowance increased to 53% for Central Govt Employees

The Ministry of Finance has announced a revision of the Dearness Allowance (DA) rates, effective July 1, 2024. This adjustment aims to assist employees in managing inflation and increasing living costs.

Key Highlights of the Dearness Allowance Revision:

• DA Increase: The Dearness Allowance will rise from 50% to 53% of the Basic Pay, effective July 1, 2024.
• Scope of the Increase: This change applies to the Basic Pay within the prescribed levels of the Pay Matrix as outlined by the 7th Central Pay Commission (CPC). It does not extend to components such as special pay or additional benefits.
• Ongoing Commitment: This revision reflects the government’s dedication to regularly updating the Dearness Allowance, ensuring that the salaries of Central Government employees keep pace with current inflation.

Implications of the DA Increase for Employees:

The Dearness Allowance is a crucial part of the salary structure for Central Government employees, and this 3% increase is a significant adjustment. It is essential to understand that DA remains a separate component of remuneration and is not considered part of the basic pay under FR 9(21), meaning it will not affect other allowances or benefits linked to basic pay.

Payment Rounding Rules:

Standard rounding procedures will apply:

• Amounts of 50 paise or more will be rounded up to the next higher rupee.
• Amounts less than 50 paise will be disregarded.

Applicability and Separate Orders for Defence and Railways:

This DA increase will also apply to civilian employees under the Defence Services Estimates, with expenses charged to the appropriate head of the Defence Services budget. Separate orders for Armed Forces personnel and Railway employees will be issued by the Ministry of Defence and the Ministry of Railways, respectively.

Special Provisions for the Indian Audit and Accounts Department:

Employees of the Indian Audit and Accounts Department will receive this DA increase, with the revision made in consultation with the Comptroller and Auditor General (CAG) of India, in accordance with Article 148(5) of the Constitution.