Allowance Dearness Employees Government Pay Commission

Central Government Employees’ Pay Impact when DA reaches 50 percent : Implications of 50% DA under 7th CPC

By Annu Priya August 3, 2023

What will happen When DA (Dearness allowance) reaches 50% for central government (CG) employees?. What are the benefits available to central government employees when DA reaches 50%?. let us see the benefits as mentioned below:

D.A. from 01 Jan. 2023 42%
D.A. from 01 Jul. 2023 46% to 47% (Expected)
D.A. from 01 Jan. 2024 > 50%

H.R.A.- House Rent Allowance:

Type of City	HRA When 7th Pay Commission implemented	HRA when DA will reaches 25% (Present HRA)	HRA when DA will reach 50%
X	24%	27%	30%
Y	16%	18%	20%
Z	8%	9%	10%

Note :- The rates of HRA will not be less than Rs. 5400/-, 3600/- & 1800/- at X,Y & Z class cities respectively.

central_government_employees_pay_impact_when_da_reaches_50_percent

Retirement Gratuity:

Retirement gratuity is admissible to all employees who retire after completion of 5 years of qualifying service at the rate of one-fourth of emoluments for each completed six-monthly period of qualifying service subject to maximum of 16 1/2 times the emoluments or Rs 20 lakhs from 01/01/2016.

The ceiling on gratuity may increased by 25% whenever DA rise by 50%.

Maximum ceiling at Present	Maximum ceiling when DA will reach 50%
Rs 20 Lakhs	Rs 25 Lakhs

Composite Transfer grant:

A Composite Transfer Grant equal to 80% of last month’s Basic Pay. No other add-ons should be allowed in Basic Pay while calculation CTG.

For Transfer to and from the island territories of Andaman, Nicobar and Lakshadweep, CTG may continue to be paid at 100%.

Composite Transfer Grant .

Present Rate

When DA will reach 50%

At Normal Place

80% of Basic

100% of Basic

Transfer to and from the island territories of A.N.
& Lakshadweep

100% of Basic

125% of Basic

The rates for personal effects will further increase by 25% each time DA rises by 50%.

Special Allowance for Child Care:

i. Women with disabilities shall be paid Special allowance for Child Care from the time of the child’s birth till the child is two years old.
ii. It shall be payable for a maximum of two eldest surviving children.
iii. Disability means a person having a minimum Disability of 40% as elaborated in Ministry of Welfare’s Notification No. 16-18/97-NLI dated 1.6.2001 and amended from time to time

Present Rate	When DA will reach 50%
Rs 3,000/- per month	Rs 3,750/- per month

C.E.A. — Children Education Allowance:

H.S. — Hostel Subsidy:

Rate of Children Education Allowance and Hostel Subsidy

Component	Present Rate	When DA will reach 50%
Children Education Allowance	Rs 2,250 /- per month	Rs 2812.5/- per month
Hostel Subsidy	Rs 6,750 /- per month	Rs 8437.5/- per month

The rates are raised by 25% every time the DA reaches 50%

* Both hostel subsidy and Children Education Allowance can be availed concurrently.

Dress Allowance:

i. The Uniform Allowance / Washing Allowance/ Stitching Charges/ Shoe Allowance, etc. have been subsumed in Dress Allowance
ii. The amount of Dress Allowance shall be credited to the salary of employees directly once a year in the month of July.

Present Rate	When DA will reach 50%
Rs 5,000/- per year	Rs 6,250/- per month

Cash Handling Allowance to Cashiers:

The rates of Cash Handling Allowance :-

Amount of average monthly cash disbursed	Present Rate	When DA will reach 50%
<= 5,00,000	Rs 700 /- per month	Rs 875/- per month
>5,00,000	Rs 1,000 /- per month	Rs 1250/- per month

Source: Blogs

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