In a welcome move for government employees, the Indian government has issued an order that will result in an increase in salary from January 1, 2024. Despite the actual expenses incurred by government employees for their children’s education, the reimbursement amount for children’s education allowance will be increased to INR 2,812.5 per month, and hostel subsidy will be increased to INR 8,437.5 per month.
Background
The increase in salary comes as a relief for central government employees, especially after the recent announcement of a 50% hike in Dearness Allowance (DA). Following this increase, various allowances for children’s education and hostel subsidy have also been doubled.
Government Order
The Ministry of Personnel, in an order issued on Monday, announced the increase in the reimbursement for children’s education and hostel subsidy for central government employees. Referring to a directive from 2018, the order states that whenever the Dearness Allowance reaches 50%, the reimbursement for children’s education allowance and hostel subsidy will naturally increase by 25%. This will come into effect from January 1, 2024.
Revised Allowances
According to the order, government employees will now receive INR 2,812.5 per month as reimbursement for children’s education allowance and INR 8,437.5 per month as hostel subsidy. Additionally, the education allowance for children with disabilities will be doubled to INR 5,625 per month. The order also specifies a special allowance of INR 3,750 per month for child care for disabled women. These revisions will be effective from January 1, 2024.
Impact of DA Hike
The hike in Dearness Allowance, which has now reached 50%, was approved during a recent cabinet meeting chaired by Prime Minister Narendra Modi. The new rates, effective from January 1, 2024, will remain in effect until June 2024. The Ministry of Finance had issued orders in February regarding the new rates. Along with the increase in DA, various other allowances such as house rent allowance, overtime, child education allowance, child care special allowance, risk allowance, night duty allowance, and special allowance have also been increased.
These announcements by the government are expected to benefit approximately 49.18 lakh employees and 67.95 lakh pensioners. With salary increases of up to INR 10,000, these measures aim to provide relief and improve the financial well-being of government employees and their families.