New Delhi, July 27: The Dearness Allowance (DA) of the Central Government employees is likely to increase further. With the Cabinet recently approving the restoration of DA, the CG employees will received an increased DA in September.
If one goes by the AICPI data from January to May 2021, the Centre is likely to approve a DA hike of 3 per cent very soon. If the DA is increased by 3 per cent then the same would be 31 per cent and this would mean an increase in their salaries.
The current DA of the CG employees is 28 per cent after the Centre had increased the same by 11 per cent.
The Centre also increased the HRA and according to the rules the same has increased because the DA has exceeded 25 per cent. This meant that the HRA was increased to 27 per cent.
The Department of Expenditure is believed to have issued an order dated July 7 2021 stating when the DA exceeds the 25 per cent bracket, the HRA will also be revised. The HRA also requires a revision since the DA of the CG employees will be increased to 28 per cent.
The HRA would however vary from city to city. The cities are divided into three categories-X,Y,Z.