Key Points
The dearness allowance (DA) for central government employees has been hiked by 4%..
Dearness relief (DR) for central government pensioners has also risen by 4% to 50%..
How will the 4% DA hike impact the salary of the central government employees, pensioners?..
This will lead to a significant jump in the salary of central government employees.. Shri Venkatesh, Managing Partner, SKV Law Offices, says, "When the central government raises dearness allowance to 50%, it also leads to increases in other related allowances like house rent allowance, daily allowance, gratuity ceiling, and hostel subsidy..
In a similar manner, the other components such as special allowance for child care, gratuity ceiling, dress allowance , and daily allowance will be increased by 25% when DA reaches 50%, according to the recommendations of the 7th Central Pay Commission...
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