7th Pay Commission: Central govt employees likely to get two benefits soon; check details

7th Pay Commission news: The New Year 2024 has already begun with much fervour and zeal. With the new year, central government employees are likely to get good news soon. If reports are to be believed, the central government may give two benefits to its employees this year -- an increase in dearness allowance (DA hike) and House Rent Allowance (HRA). Presently, central government employees are getting a dearness allowance at the rate of 46 per cent. The Centre may hike DA by 4 per cent. After this, the DA will be increased to 50 per cent.

If both DA and HRA get increased, then central government employees will get a decent hike in their salary. It should be noted that the amount of HRA differs from city to city and only those employees get the benefit of HRA who live in a rented house. For example, the employees who live in tier-1 cities would get more HRA than an employee who lives in tier-II or tier-III Cities.

In general, the DA rate is revised twice a year -- in January and July -- based on the half-yearly data of the AICPI index. A total of 8% DA was increased in 2023. Currently, the Central govt employees are expecting a 4% or more hike in Dearness allowance. The DA hike, if implemented, will be in effect from January 2024 and it is expected to be announced before Holi 2024.

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