Dearness Allowance (DA) is an important allowance for central employees that helps them absorb inflationary increase in salaries.
The DA rates are revised as per the position of this Pay Commission, due to which the employees get the benefit of the reform.
Announcement of increase in DA
The Central Government announced a 4% increase in DA during Navratri, which will give a good increment to the employees. As a result, the DA rate will now be 46% as recommended by the Main Pay Commission.
HRSA will increase
Now the focus of the employees is on House Allowance Rent (HRA) . HRSA will also be replaced by Dearness Allowance.
2024 is good news
If all goes well, central employees will get HRA hike in the first half of the new year. In fact, the government expects to increase DA by 4% in the first half of 2024, from 46% at present. If this happens, DA will become 50%.
Along with fifty percent DA, HRA of employees will also increase. Even if DA increases by 3% in the first half, it will increase by 50% in the second half. This means that employees will get good news on HR in 2024.
What is the current rate of HRA?
The current DA rate is less than 50%. Employees living in cities or towns named X, Y and Z get 27, 18 and 9 percent HRA.
When will the increase happen?
The Seventh Pay Commission recommendation for HRSA provides some necessary guidelines. Therefore, HRAR will also change if Dearness Allowance (DA) is 50 percent or more.
Cities have been divided into three categories for increasing HRA. There are X, Y and J. If the employee lives in X category cities or towns, his HRA will increase by 30%. The HRA of Y category will be 20%, while the HRA of Z category will be 10%.