What happen when DA
reaches 50%? List of allowances which will increase when DA reaches to 50%
What will Happen if DA reaches 50%?, Dearness Allowance Merger Rules 7th CPC
Also Check DA Calculator from January 2024.
Consumer Price Index for Industrial Workers (CPI-IW) was published by the Labour Bureau last month, After calculating, it is obvious that the Dearness Allowance for the central government employees will be at least 50% in all three possibilities described in above DA Calculator from January 2024. Dearness Allowance (DA) is a dynamic element that adjusts to the ever-evolving cost of living of govt employees. The 7th Central Pay Commission had made provisions for increasing certain allowances when the DA crosses 50%.
Here is the list of Allowances which will increase when DA reaches to 50%
As we have discussed earlier that the Rate of DA will reach 50 percent Level from 01 January 2024 for Government Employees. When DA reaches 50%, certain allowances and salary components will also be increased as per the recommendation by 7th Pay Commission. These allowances are:
1. House Rent Allowance (HRA)
2. Children Education Allowance (CEA)
3. Special Allowance for Child Care
4. Hostel Subsidy
5. TA on Transfer (Transportation of Personal Effects)
6. Gratuity Ceiling
7. Dress Allowance
8. Mileage Allowance for Own Transport
9. Daily Allowance
Now we will discuss about each allowance which will increase after DA reaches to 50%.
It is the most common question by all Central
Government Employees and State Government Employees that What is the HRA after
50 DA?
As
you know, the HRA is revised when the DA touches the 50% level. Presently, the
HRA is paid at rates of 27, 18, and 9 percent, for X, Y, Z cities. If the DA
reaches the 50% level, HRA is expected to increase to 30, 20, and 10 percent,
respectively.
Below Table will give more clarity on
House Rent Allowance (HRA) and DA relation-
Type of City |
HRA
from 1.1.2016 |
HRA
when DA Reached
25% |
HRA
when DA Reaches
50% |
X |
24% |
27% |
30% |
Y |
16% |
18% |
20% |
Z |
8% |
9% |
10% |
Children Education
Allowance (CEA)
Children Education Allowance will also
be hiked by 25% every time DA reaches 50% as per 7th CPC recommendation.
Table
below will show the increase in Children Education Allowance (CEA) for normal
child and Divyang Child:
Component |
Present
Rate |
After
DA Reaches 50% |
Children Education
Allowance (Normal Child) |
Rs
2,250 /- per month |
Rs
2812.5/- per month |
Children Education
Allowance to (Divyang Child) |
Rs
4500 /- per month |
Rs
5625/- per month |
Hostel Subsidy
Hostel
Subsidy will also be hiked by 25% every time when DA reaches to 50%.
Component |
Present
Rate |
After
DA Reaches 50% |
Hostel
Subsidy |
Rs
6,750 /- per month |
Rs
8437.5/- per month |
Special Allowance for
Child Care for Women with Disabilities
Special
Allowance for Child Care for Women with Disabilities will be increased by 25
percent every time DA reaches 50 percent as per the table below-
Component |
Present
Rate |
After
DA Reaches 50% |
Special
Allowance for Child Care |
Rs
3000 /- per month |
Rs
3750/- per month |
Gratuity Ceiling
Gratuity
Ceiling for government employees will be increased by 25% whenever DA touches
50 percent.
Maximum
Gratuity Ceiling at Present |
Maximum
Ceiling when DA Rises by 50% |
Rs
20 Lakhs |
Rs
25 Lakhs |
Dress Allowance
The
Rates of Dress Allowance categories shall be increased by 25% whenever DA rises
by 50% as per 7th CPC recommendations.
Sl. No. |
Category
of Employee |
Present
Rate |
After
DA Reaches 50% |
1 |
Special
Protection Group (SPG) Operational |
27,800 |
34750 |
2 |
Special
Protection Group (SPG) Non - operational |
21,225 |
26531 |
3 |
Officers
of Army / IAF / Navy / CAPFS / CPOs RPF / RPSF / IPS / Coast Guard |
20,000 |
25000 |
4 |
Executive
Staff of Customs, Central Excise and Narcotics Department, etc. |
10,000 |
12500 |
5 |
Other
Categories of Staff |
5,000 |
6250 |
6 |
Nurses |
1800
/- per month |
2250 |
TA on Transfer
(Transportation of Personal Effects)
The
following rates will be increased by 25% when DA reaches 50%.
Level |
By
Train / Steamer |
By
Road |
12
and above |
6000
Kg by goods train / 4 wheeler wagon / 1 double container |
Rs.
50 / - per km |
6
to 11 |
6000
Kg by goods train / 4 wheeler wagon / 1 single container |
Rs.
50 / - per km |
5 |
3000
kg |
Rs.
25 / - per km |
4
and below |
1500
kg |
Rs.
15 / - per km |
Mileage Allowance for Own
Transport
Mileage Allowance for Own Transport
will increase after DA reaches to 50% level as per the table below:
Mode
of Transport |
Present
Rate |
After
DA Reaches 50% |
For
Journeys Performed in Own Car / Taxi |
Rs.
24 / - per km |
Rs.
30 / - per km |
For
Journeys Performed by Auto Rickshaw, etc. |
Rs.
12 / - per km |
Rs.
15 / - per km |
Daily Allowance
The
following Daily Allowance rates for reimbursement of various expenses shall be
increased by 25% when DA rises by 50%.
Daily
Allowance includes Reimbursement of Hotel Charges, Reimbursement of Travelling
Charges and Reimbursement of Food Charges:
Pay
Levels |
Reimbursement
Component |
Current
Rate |
14
and above |
Hotel
Accommodation /Guest
House |
Up
to Rs. 7,500/ - per day |
|
AC
taxi charges |
Actual
Expenditure |
|
Food
Bills |
Rs.
1,200/ - per day max |
Pay
Levels 12 and 13 |
Hotel
Accommodation /Guest
House. |
Up
to Rs. 4500/ - per day |
|
AC
taxi charges |
Up
to 50 km per day |
|
Food
Bills |
Rs.
1,000/ - per day max |
Pay
Levels 9 to 11 |
Hotel
Accommodation /Guest
House. |
Up
to Rs. 2250/ - per day |
|
Non-AC
taxi charges |
Up
to Rs. 338/ - per day |
|
Food
Bills |
Rs.
900/ - per day max |
Pay
Levels 6 to 8 |
Hotel
Accommodation /Guest
House. |
Up
to Rs. 750/ - per day |
|
Non-AC
taxi charges |
Up
to Rs. 225/ - per day |
|
Food
Bills |
Rs.
800/ - per day max |
Pay
Levels below 5 |
Hotel
Accommodation /Guest
House. |
Up
to Rs. 450/ - per day |
|
Non-AC
taxi charges |
Up
to Rs. 113/ - per day |
|
Food
Bills |
Rs.
500/ - per day max |
Note:
all above Daily Allowances will hiked by 25 % when DA will reach to 50% as per
7th Pay Commission.
Frequently Asked
Questions (FAQ)
Q: What happens when DA is 50%? or What
happens when Ida crosses 50%?
Ans: As per the recent CPI-IW data by Labour
Bureau, calculated rate of DA will reach 50% Level from 01 January 2024 for
Government Employees. When DA reaches 50%, certain allowances and salary
components will also be increased as per the recommendations of 7th Pay
Commission. These allowances include:
1. House Rent Allowance (HRA)
2. Children Education Allowance (CEA)
3. Special Allowance for Child Care
4. Hostel Subsidy
5. TA on Transfer (Transportation of Personal Effects)
6. Gratuity Ceiling
7. Dress Allowance
8. Mileage Allowance for Own Transport
9. Daily Allowance
Q: What is the HRA after
50 DA?
Ans: As per the recommendation by 7th Pay
Commission, the HRA is revised when the DA reaches the 50% mark. At present,
the HRA is reimbursed at rates of 27%, 18%, and 9%, under X, Y, Z category
cities in India. If the DA crosses the 50% level, HRA is expected to rise to
30%, 20%, and 10%, respectively.
Q: What is the Children
Education Allowance (CEA) after 50% DA?
Ans: Children
Education Allowance (CEA) will also be hiked by 25% when DA reaches 50% as per
7th CPC recommendation. Current CEA rates are Rs. 2,250 /- per month and Rs.
4500 /- per month for normal child and divyang child respectively. After DA
Reaching to 50%, New CEA will be revised at the rate of Rs. 2812.5/- per month
and Rs. 5625 /- per month for normal child and divyang child respectively.
Q: Can I claim CEA after
retirement?
Ans: In case of retirement, discharge,
dismissal or removal from service, CEA / Hostel Subsidy shall be admissible
till the end of the academic year in which the officer ceases to be in service
due to retirement, discharge, dismissal or removal from service, in course of
an academic year.
Q: What is the DA in
January 2024?
Consumer Price Index for Industrial Workers (CPI-IW) was published by
the Labour Bureau last month, after calculating, it is obvious that the Dearness
Allowance for the central government employees will be at least 50% in all the
possibilities described in above DA Calculator from January 2024.
Q: What will be DA in
2025?
Ans: Expected DA hike from Jan 2024 is 50%
Expected DA hike from July 2024 is 54%
Expected DA hike from Jan 2025 is 58%
Expected DA hike from July 2025 is 62%
Q: Will there be 8th Pay
Commission?
A: As you know 8th
Pay Commission is due from 01 Jan 2026 for central government employees and
pensioners. Generally, Formation of Pay Commission is done before two years
from due date which is on 01 Jan 2024. Although Central Govt has not made any
Formation Commitment yet. Let's see when it happens?
Also Read All News About DA and DR
#DA50% #HRA
#CEA #DAfromJan2024
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