From September month, over 1 crore employees of the central government as well as pensioners will get increased dearness allowance. Alongside they would also they would received the pending arrears of DA for the three months.
Reports further suggest that the centre may once again increase the dearness allowance. Notably the hike in DA for the month of June is still pending and as per the data from AICPI the centre would give a go-ahead to 3% hike in DA and the announcement is just likely to be made soon.
Now if the central government announces a hike of 3% in DA, the DA of 31% will result in significant salary inflow too. At present DA of central government employees stands at 28% and this is after the recent hike in DA by as much as 11 percent.
House rent allowance (HRA) also increased after DA breached 25% mark
As per rules, after the DA has been increased beyond 25%, HRA has become 27%. This was as per the order dated July 7, 2017. The DA hike is applicable from July 1 and likewise the hike in HRA was also essential as per the ruling. Note the HRA hike of between 1-3% is based on the city class.