What Happens When DA Reaches 50% : How 50 Percent DA Impacts Your Allowances now ?

Here we provided the answers for the queries of What Happens When DA Reaches 50% and How 50 Percent DA Impacts Your Allowances.

What Happens When DA Reaches 50%

It is expected that the Rate of DA will hit 50% Level from January 2024. Everybody know that they will get 4% increased salary when DA reaches 50 % from existing 46%. Apart from this increase, the 7th Pay Commission has recommended to increase certain allowances when DA reaches 25% and 50% Level.

What are all the Allowances will be increased when DA reaches 50%?

The Following Allowances/Salary Components shall be increased on DA reaches 50% Level

1. House Rent Allowance
2. Childre Education Allowance
3. Special Allowance for Child care
4. Hostel Subsidy
5. TA on Transfer (Transportation of Personal Effects)
6. Gratuity Ceiling
7. Dress Allowance
8. Mileage Allowance for own Transport
9. Daily Allowance

What happened when DA reached 25% Level ? How 50 Percent DA Impacts Your Allowances ?

The rates of HRA has been revised to 27%, 18% and 9% of Basic Pay in X,Y and Z cities when Dearness Allowance (DA) crossed 25% level and above said allowances also were revised accoring to the 7th CPC recommendation

Ministry of Finance vide in its Order dated 4.8.2021 stated that no specific order need to be issued for revising this allowance as this Recommendation of increasing some allowances when DA reaches 25% and 50% was accepted by Government of India. The Order stated the following,

” O/o Controller General of Accounts may refer to their ID Note No. TA-2-01001/3/2020-TA-II/(E-4434)/610 dated 02.08.2021 seeking Clarification whether a separate order is to be issued by D/o Expenditure for grant of increased House Rent Allowance to Central Government Employees or not with the increase of Dearness Allowance from 17% to 28% w.e.f. 01.07.2021.

The matter has been examined in this Department and it is clarified that this Department’s OM No. 2/5/2017-E.1I(B) dated 07.07.2017(copy enclosed) is very clear and no separate order is being issued by Department of Expenditure”.

So no seperate order will be issued for increasing these allowances after DA reaches 50% Level

The Rates of Allowances when DA crosses 50% to be increased

House Rent Allowance after DA reaches 50%

The Percentage of HRA shall be increased as per the following table when DA reaches 25% and 50% Level [ View the Order]

Type of City	HRA from 1.1.2016	HRA when DA reached 25%	HRA when DA reaches 50%
X	24%	27%	30%
Y	16%	18%	20%
Z	8%	9%	10%

How 50 Percent DA Impacts Your Allowances

Children Education Allowance when DA hits 50% Level

Children Education Allowance will be increased by 25% every time DA reaches 50%

Component	Present Rate	After DA reaches 50%
Children Education Allowance	Rs 2,250 /- per month	Rs 2812.5/- per month

CEA to Divyang Child after 50% DA

Children Education Allowance to Diyang Child will be increased by 25% every time DA reaches 50%

Component	Present Rate	After DA reaches 50%
Children Education Allowance to Divyang Child	Rs 4500 /- per month	Rs 5625/- per month

Hostel Subsidy after DA Reaches 50%

Hostel Subsidy will be increased by 25% every time DA reaches 50%

Component	Present Rate	After DA reaches 50%
Hostel Subsidy	Rs 6,750 /- per month	Rs 8437.5/- per month

Special Allowance for Child Care for Women with Disabilities after 50 % DA

Special Allowance for Child Care for Women with Disabilities will be increased by 25% every time DA reaches 50% (See the Order for other Conditions)

Component	Present Rate	After DA reaches 50%
Special Allowance for Child Care	Rs 3000 /- per month	Rs 3750/- per month

Gratuity Celing Rs.20 Lakh to be increased After 50% DA

Gratuity Ceiling to be increased by 25% whenever DA rises by 50%

Maximum Gratuity ceiling at Present	Maximum ceiling when DA rises by 50%
Rs 20 Lakhs	Rs 25 Lakhs

Dress Allowance after 50% Dearness Allowance

The Rates of following Dress Allowance categories shall be increased by 25% whenver DA rises by 50% ( Read the Order)

TA on Transfer (Transportation of Personal Effects) when DA rises by 50%

The follwing rates will be increased by 25% when DA reaces 50 Percent

Mileage Allowance for own Transport after 50 Percent DA

At places where no specific rates have been prescribed either by the Oirectorate of Transport of the concerned State or of the neighboring States. the following Mileage Allowance for own Transport to be increased by 25% when DA crosses 50%

What is rate of Daily Allowance when DA rises by 50% ?

The Following Daily Allowance Rate for Reimbursement of Hotel charges , Reimbursement of Travelling charges and Reimbursement of Food charges shall be increased by 25% when DA rises by 50% Level (View the Order)

Reimbursement of Hotel charges :- For levels 8 and below, the amount of claim (up to the ceiling) may be paid without production of vouchers against self-certified claim only. The self-certified claim should clearly indicate the period of stay, name of dwelling, etc. Additionally, for stay in Class ‘X’ cities, the ceiling for all employees up to Level 8 would be X1,000 per day, but it will only be in the form of reimbursement upon production of relevant vouchers. The ceiling for reimbursement of hotel charges will further rise by 25 percent whenever DA increases by 50 persent

Reimbursement of Travelling charges :- Similar to Reimbursement of staying accommodation charges, for levels 8 and below, the claim (up to the ceiling) may be paid without production of vouchers against self- certified claim only. The self-certified claim should clearly indicate the period of travel, vehicle number, etc. The ceiling for levels 11 and below will further rise by 25 percent whenever DA increases by 50 percent. For journeys on foot, an allowance of Rs.12/- per kilometer travelled on foot shall be payable additionally. This rate will further increase by 25% whenever DA increases by 50%.

Reimbursement of Food charges :- There will be no separate reimbursement of food bills. Instead, the lump sum amount payable will be as per Table E(i) above and, depending on the length of absence from headquarters, would be regulated as per Table (v) below. Since the concept of reimbursement has been done away with, no vouchers will be required. This methodology is in line with that followed by Indian Railways at present (with suitable enhancement of rates). i.e. Lump sum amount payable. The lump sum amount will increase by 25 percent whenever DA increase by 50 percent.