The Finance Ministry gave good news to 52 lakh central employees and 60 lakh pensioners and issued an order to implement the decision of the cabinet, under which Dearness Allowance has been increased from 17 percent to 28 percent.
The Department of Expenditure under the Ministry of Finance has issued an order to increase DA to 28 percent.
7th Pay Commission Latest News: The good news that 52 lakh central employees and 60 lakh pensioners were waiting for for the last one and a half years, got that good news in true sense today. The Finance Ministry has issued an order to implement the decision of the Union Cabinet to increase the Dearness Allowance for Central Government employees to 28 percent from July 1.
The Union Cabinet had decided to increase the rate of dearness allowance and dearness relief for central employees and pensioners by 11 percent from July 1. Now it was 17 percent which increased to 28 percent. In the office memorandum of the Department of Expenditure under the Ministry of Finance, it has been said that the rate of dearness allowance to the employees will be increased from 17 percent of the basic pay to 28 percent from July 1.
The rule will also apply to civilian employees
This increase will also include additional installments due from January 1, 2020, July 1, 2020 and January 1, 2021. According to the Finance Ministry, this order will also be applicable to the civilian employees getting paid from the Defense Services estimate. Separate orders will be issued by the respective ministries for the employees of the Armed Forces and the employees of the Railways.
HRA has also been increased to 27%
For information, let us tell you that after the announcement of the increase regarding Dearness Allowance, the Central Government has also increased the House Rent Allowance (HRA) to 27 percent. In fact, the Department of Expenditure had issued an order on 7 July 2017 in which it was said that when the Dearness Allowance crosses 25 per cent, the house rent allowance will be revised. Since July 1, the dearness allowance has increased to 28 percent, due to which the house rent allowance has also been revised.
HRA hiked to 27% for “X” class cities
The HRA for “X” class cities after revision will be 27% of the basic pay. Similarly, for “Y” class cities it will be 18% of the basic pay and for “Z” class cities it will be 9% of the basic pay. At present it is 24 per cent, 16 per cent and 8 per cent for all three classes. In this way, the house rent allowance has been increased by 1-3 percent for different categories.
Total Transport Allowance = TA + [(TA x DA% )/100]
Apart from this, the increase in dearness allowance will have a direct impact on the transport allowance as well and there has been a jump in it. Transport allowance is available on the basis of TPTA category. Cities like Delhi, Ahmedabad, Bangalore, Ghaziabad, Greater Mumbai, Hyderabad, Jaipur, Patna come under the high TPTA category. Apart from this, the rest of the cities come under Other Cities. TPTA has been fixed for different levels of employees, on which transport allowance is calculated for an employee by adding dearness allowance.
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