Union Cabinet Approves DA Hikes to 50% for Central Government Teachers

Under the leadership of Prime Minister Shri Narendra Modi, the Union Cabinet has granted approval to release an extra instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from January 1, 2024. Cabinet approval signifies a 4% hike over the current rate of 46% of the Basic Pay/Pension which is 50 %, aiming to offset the impact of rising prices.

As per revised DA Approval, Cabinet has made an increase in dearness allowance and dearness relief, effective from 1 January 2024, which represents an enhancement from the existing rate of 46% of the Basic Pay/Pension, making the new rate Dearness Allowance i.e. 50% as per 7th pay commission. This decision aligns with the well-established formula derived from the recommendations of the 7th Central Pay Commission. DA Allowance revisions typically occur in January and July each year.

As per Cabinet reports, positive outcome of DA Hike decision extends to approximately 49.18 lakh central government employees and 67.95 lakh pensioners, who will directly benefit from the increased dearness allowance. The calculation of dearness allowance for central government Teachers is based on the most recent Consumer Price Index for Industrial Workers (CPI-IW), a key indicator of inflation in the country.

HRA Hikes

Central Government has been releasing thousand of teaching vacancies i.e. PGT, TGT and PRT for KVS, DSSSB and NVS Schools. All the selected candidate will get salary with hiked DA i.e. 50 % along with their pay scale as per 7th pay commission. This will also make impact on HRA allowance as per 7th pay commission. As DA Hikes to 50%, HRA will be revised to 30%,20% and 10% from 24%,16%and 8 %. It is a step that reflects the government’s commitment to the well-being of its employees and retirees and their economic security during times of inflationary pressures.

Additionally, there will be a 25% increment in transport allowance, canteen allowance, and deputation allowance. Furthermore, benefits under gratuity will see a 25% surge, with the ceiling raised to Rs. 25 lakh from the current Rs. 20 lakh. This initiative is estimated to require an annual funding of Rs. 9,400 crore from the Centre.

The decision to increase dearness allowance serves as a testament to the government’s efforts to cushion the financial well-being of its workforce, ensuring they can navigate the challenges posed by economic fluctuations with confidence and stability. This proactive measure is set to have a positive impact on the lives of central government employees and pensioners across the country.

Sharing is caring!