7th Pay Commission: Central government employees are eagerly waiting for the increase in their next Dearness Allowance (DA). According to the data of Labor Bureau of Labor Ministry, this time dearness allowance for central government employees is likely to increase by 50%.
7th Pay Commission: Central government employees are eagerly waiting for the increase in their next Dearness Allowance (DA). According to the data of Labor Bureau of Labor Ministry, this time dearness allowance for central government employees is likely to increase by 50%. This time dearness allowance may increase by 4 percent. DA is a part of the salary of central government employees. Its objective is to reduce the effect of inflation. But do you know which allowances will increase when dearness allowance reaches 50 percent.
Now if DA reaches 50%, some other allowances and parts of salary will increase, which can cause a big jump in your salary. According to the 7th Central Pay Commission, all these allowances will increase when DA reaches 50%.
1) House Rent Allowance (HRA) House Rent Allowance
2) Children’s education allowance
3) Special allowance for child care
4) Hostel Subsidy
5) TA on transfer
6) Gratuity limit
7) Dress allowance
8) Mileage allowance for own transport
9) daily allowance
For example, all central government employees get House Rent Allowance (HRA), which depends on where they live. As per the recommendations of the 7th Pay Commission, HRA for Class X, Y and Z cities has been made 24%, 16% and 8% of the basic pay respectively with effect from July 1, 2017. When DA reached 25%, as per the recommendations of the 7th Pay Commission, the HRA rates in X, Y and Z cities were revised to 27%, 18% and 9% of the basic salary.
It is now also recommended that when DA reaches 50%, the HRA rates will be revised to 30%, 20% and 10% of basic salary in cities X, Y and Z respectively. House rent allowance given to employees depends on the category of that city. In which they live. HRA for X, Y and Z type cities is 27%, 18% and 9% respectively. On a basic salary of Rs 53,500, HRA will be Rs 14,445 (Type X), Rs 9,630 (Type Y) and Rs 4,815 (Type Z) respectively. However, once DA reaches 50%, HRA will increase by 25%.
As per the recommendations of the 7th Pay Commission, the children’s education allowance will be increased by 25% every time DA reaches 50%. For example, if a central government employee now gets Rs 2,250 per month as children’s education allowance, then it will increase to Rs 2,812.5 per month when DA reaches 50%.
