7th Pay Commission: The government has decided to increase Dearness Relief (DR) and Dearness Allowance (DA) by 4%. That is, now central government employees and pensioners will get DA equal to 50 percent of their basic salary. Dearness relief and dearness allowance will have an annual impact of Rs 12,868.72 crore on the government exchequer. About 67.95 lakh pensioners and 49.18 lakh central government employees are going to benefit from this. Let us know here what it means to have a 50 percent dearness allowance.

These allowances will increase

Due to the increase in dearness allowance of the government, there will be an increase of 25% in transport, deputation and canteen allowance. Dearness allowance rates of central government employees will increase from 46% to 50% of their basic salary from January 1, 2024. According to the revised salary structure, basic pay is the salary taken at the prescribed level in the pay matrix as per the 7th CPC recommendations, but no other allowance is added to it.
This is how DA is calculated

Dearness allowance will remain a separate part of remuneration. This will not be treated as salary within the scope of FR 9(21). A balance of 50 paise and above will be carried forward due to dearness allowance. Anything less than that will be removed. The remaining amount of dearness allowance will be given in the salary of March 2024. This money will not be received before this. These orders will also apply to civilian employees drawing salary from Defense Service Estimates. The Defense Ministry and the Railway Ministry will issue separate orders concerning armed forces personnel and railway employees respectively.