In a significant update for Central Government employees, the Department has issued an Office Memorandum confirming the revision of Dearness Allowance (DA) rates. Effective from July 1, 2024, the DA will increase from 50% to 53% of the Basic Pay. This adjustment is aimed at providing additional financial support to employees amid rising living costs.
Key Highlights of the Announcement
- Increased DA Rate: The enhancement of the DA rate from 50% to 53% represents a vital step in ensuring that employees can cope with inflationary pressures.
- Definition of Basic Pay: It’s important to note that “Basic Pay” refers to the pay drawn in the prescribed level of the Pay Matrix, as outlined in the recommendations of the 7th Central Pay Commission (CPC). Other types of pay, such as special pay, are not included in this definition.
- Distinct Remuneration Element: The Dearness Allowance remains a distinct element of remuneration and will not be considered as pay under the Financial Rules (FR 9(21)), which maintains its status as a supportive allowance rather than part of the core salary.
- Payment Rounding: For the sake of simplicity in payments, any fractions of 50 paise and above will be rounded up to the next higher rupee, while fractions below 50 paise will be disregarded.
- Applicability: This increase applies to all civilian employees paid from the Defence Services Estimates. Separate directives will be issued for Armed Forces personnel and Railway employees by the respective ministries.
- Consultation with CAG: For personnel in the Indian Audit and Accounts Department, this revision has been issued in consultation with the Comptroller and Auditor General of India, adhering to the constitutional mandates.
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