7th Pay Commission: In March, how much of a DA hike would be announced for government employees?

7th Pay Commission: In March 2024, central government employees may receive a rise in their HRA in addition to the DA raise. We anticipate an official notification in this regard.

7th Pay Commission

Employees of the Central government are optimistic that Dearness Allowance will increase again in March following the most recent pay increase. But this time, how much of a DA rise will they receive? According to a story published in the Economic Times, central government personnel are expected to get an announcement of a 4% rise in salary this time around. But as of yet, there has been no formal confirmation of the issue.

The most recent DA raise, if approved, will take effect on January 1, 2024. In March, a formal announcement regarding this topic may be made. It is anticipated that the most recent DA increase will raise the dearness allowance for central government employees to 50%. With the recent 4% DA hike, the total hike in dearness allowance has increased to 46 percent effective from July 1, 2023.

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DA Hike: Big News! In the upcoming year, employees can anticipate a 50% rise in dearness allowance !

What is DA (Dearness Allowance)

7th Pay Commission: To put it broadly, Dearness Allowance is a portion of the salary that central government employees typically get in order to partially offset the effects of inflation and so increase their total compensation. Twice a year, the DA is normally amended; announcements are usually made in March and September, and the modifications take effect on January 1 and July 1. Note that the formula used to calculate DA was changed in 2006; as of June 2022, it is based on the percentage increase in the All India Consumer Price Index (AICPI) 12-month average.

Central Government Employees Should Be Aware

7th Pay Commission: While they wait for the news from the Centre, personnel of the Central government have two major developments. First, a 4% DA raise in March is a possibility, which will contribute to a pay increase.

HRA Hike Expected 

7th Pay Commission: Apart from the DA hike, another hike in House Rent Allowance is expected for the Central government employees. The Central government employees who live in a rented house get the benefit of HRA. However, the HRA amount varies from city to city.

For example, one employee who lives in tier-1 cities would get more HRA than an employee who lives in tier-II or tier-III Cities. The Central government employees must note that the HRA is subject to the city where the employee is living. Based on city categories, the HRA is divided into 3 categories- X, Y, and Z.

The ‘X’ category city is determined by a population of 50 lakh or more. Employees coming under this category are given 24-cent HRA as per the recommendation of the Central Pay Commission (CPC). The cities that have a population between 5 lakh to 50 lakh fall under the ‘Y’ category. The employees living in this city category are eligible to get 16 cents HRA of the basic salary. Lastly, the ‘Z’ category includes those employees whose population is less than 5 lakh. percent percent of the population lives here.

DA Hike Date 2024

7th Pay Commission: Due to the 7th Pay Commission’s mandate, the government must raise DA for 2024; this increase will take effect on January 1, 2024, even if the Central Government has not formally confirmed the increase. It is anticipated that in March 2024, the government will be able to raise DA. We may view the central government’s schedules for DA increments from prior years. The most recent DA increase occurred during the Diwali festival, and the next DA increase will likely be announced in conjunction with the Holi festival in March 2024.

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