The recent increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for retirees, along with the corresponding revisions in other allowances, aims to address the impact of rising prices on their incomes and pensions. The Ministry of Personnel, Public Grievances, and Pension Department of Personnel & Training clarified doubts regarding these adjustments in a statement.
Central government employees will receive a 4% raise in their DA, bringing it up to 50%. Similarly, retirees will also see a 4% increase in DR, raising it to 50%. This adjustment is crucial to help them cope with the rising cost of living.
Following the DA hike, certain allowances such as Children's Education Allowance (CEA) and Hostel Subsidy have automatically seen revisions of up to 25%. An Office Memorandum (OM) released by the Ministry outlines the revised limits for these allowances.
Government employees will now receive a fixed monthly reimbursement of Rs 2812.5 for Children's Education Allowance and Rs 8437.5 for Hostel Subsidy, regardless of actual expenditures. For personnel with Divyang children, the fixed amount is doubled to Rs 5625 per month.
Additionally, the rates for Special Allowance for Child Care for women with disabilities have been revised to Rs 3750 per month under specific circumstances.
These revisions came into effect on January 1, 2024, and will impact various other allowances besides DA, including house rent allowance, transportation allowances, gratuity ceiling, dress allowance, mileage allowance for personal transport, and daily allowance.
The increase in DA and DR will substantially affect the salary and pensions of central government employees and retirees, providing them with some relief amidst the challenging economic conditions.
