The Union cabinet last month gave approval for 3 percent hike in Dearness Allowance (DA) under the 7th pay commission. With this recent rise, DA has now become 34% of the basic income. Over 50 lakh government employees and 65 lakh pensioners are getting profit from this move. With the hike in DA, these 4 allowances may also increase. Here's the list.
1. Provident fund: The DA is given on he basic pay. As a result, a raise in DA will also raise central government employees' monthly provident fund (PF)
2. Gratuity: The Gratuity amounts of the employees will also be increased due to the hike in DA.
3. Travel Transport and City Allowance (TA CA): The hike in dearness allowance has also cleared the path for hike in Travel/Transport Allowance and City Allowance of the employees.
4. hra: As DA has increased beyond 25% hra is increaed to 27% from 24%. Once DA crosses 50% hra will be increased to 30%
Recent comments