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7th Pay Commission: Good News for Employees as Various Allowances Increase Along with DA Hike The recent decision by the Central Government to increase Dearness Allowance (DA) by 4% from January 2024, reaching a milestone of 50%, brings forth a wave of positive changes for central government employees. With this hike in DA, several other allowances have seen an increment, including House Rent Allowance (HRA), Children Education Allowance, and Hostel Subsidy. Gratuity Enhancement: Additionally, the government has raised the gratuity benefits for employees. This means an increase in the gratuity amount for retiring or deceased employees. Consequently, there has been a significant rise in the salary of employees, with an increment ranging from 1 to 1.30 lakhs. 25% Increase in Gratuity: Following the orders from the Ministry of Labour and Employment, the government has raised the maximum limit of retirement and death gratuity by 25%, effective from January 1, 2024. The maximum limit has been increased from the existing 20 lakhs to 25 lakhs, benefitting both serving and retired employees. DA Hike and Its Impact on Allowances: With the DA reaching 50%, various allowances have witnessed a surge. The government has naturally increased the ceiling of Children Education Allowance and Hostel Subsidy by 25% from January 2024. Consequently, the reimbursement amount for children’s education allowance has been raised to Rs. 2,812.5 per month, while the hostel subsidy has been increased to Rs. 8,437.5 per month. Special Benefits for Disabled Children: For employees with disabled children, the children’s education allowance has been doubled to Rs. 5,625 per month. Similarly, special allowance for child care for disabled women is fixed at Rs. 3,750 per month. These increments are applicable from January 1, 2024. Increase in HRA: Moreover, with the DA crossing the 50% mark, there has been a 3% increase in House Rent Allowance (HRA). As per the Finance Ministry’s memorandum, upon DA reaching 50%, HRA is set to increase. This hike in HRA will benefit approximately 49.18 lakh central government employees. With the rise in HRA, there will be an increment of Rs. 500 to Rs. 1000 in monthly salaries, while annual increments will range from Rs. 10,000 to Rs. 12,000. Overall, the recent enhancements in various allowances and benefits bring much-needed relief and financial stability to government employees, contributing to their overall well-being and satisfaction. User

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The recent decision by the Central Government to increase Dearness Allowance (DA) by 4% from January …

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