As per a report, the employees of central government could get an increased in the salaries for the month on the March 30 rather than on March 31, since it is a Sunday.
4% Increase in Dearness Allowance
Notably, the RBI has asked banks to work on March 31, despite being a Sunday, since it is the last day of the financial year.
It is based on the latest Consumer Price Index for Industrial Workers (CPI-IW) brought out by the Labour Bureau every month, that the dearness allowance is calculated.
Hence based on the recommendations of the 7th Central Pay Commission, the increase in DA shall be as per the accepted formula.
Elevating the DA from 46% to %50%, following the 4% increase sanction in DA, the employees shall be entitled to the arrears of January as well as February, since the increment was effective since January 2024.
With DA reaching 50%, there was also an increase in the HRA, and depending on the city and its categorization, it could reach upto 30% for an employee.
Impact of DA Surge on Special Allowances for Central Government Employees
Notably, the surge in DA also triggers an augmentation in various special allowances for central employees which includes childcare allowance, child education allowance, hostel subsidy, travel allowance on transfer, dress allowance, gratuity ceiling, and mileage allowance. However, employees must claim these allowances accordingly.
As per October 2023, the government employees’ DA as well as pensioners’ Dearness Relief (DR) was hike by 4%, taking the DA from 42% to 46%.
This decision shall benefit as many as 48.67 lakh central government employees and 67.95 lakh pensioners.
