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Revision of Dearness Allowance Rates for Central Government Employees Effective July 1, 2024

Date: October 21, 2024
Source: Ministry of Finance, Department of Expenditure, Government of India

Key Highlights

The Government of India has announced a revision in the rates of Dearness Allowance (DA) for Central Government employees, effective from July 1, 2024. This decision was confirmed in the Office Memorandum (O.M.) No. 1/5/2024-E.II (B) dated October 21, 2024.

New DA Rate

Increased Rate: The Dearness Allowance will be increased from 50% to 53% of the Basic Pay.

महंगाई भत्ता (DA) की दरों में संशोधन: 01.07.2024 से प्रभावी

Definition of Basic Pay

Basic Pay refers to the pay drawn in the prescribed Level of the Pay Matrix as per the 7th Central Pay Commission (CPC) recommendations. It does not include special pay or any other allowances.

Important Considerations

Separate Element: The Dearness Allowance will remain a distinct element of remuneration and will not be considered part of the pay as per FR 9(21).
Payment Rounding: Payments involving fractions of 50 paise and above will be rounded up to the nearest rupee, while fractions below 50 paise will be disregarded.

Applicability

These orders will also extend to civilian employees under the Defence Services Estimates. Expenditure will be charged to the relevant head of the Defence Services Estimates.
Separate directives for Armed Forces personnel and Railway employees will be issued by the respective ministries.

Consultation

For employees in the Indian Audit and Accounts Department, this announcement was made in consultation with the Comptroller and Auditor General of India, in accordance with Article 148(5) of the Constitution of India.

Conclusion

This revision aims to support Central Government employees in coping with inflation and ensuring that their compensation remains competitive. For more detailed information, please refer to the official Office Memorandum.