Government revises Dearness Allowance for employees, Jammu and Kashmir Also Covered

Government revises Dearness Allowance for Central employees, Jammu and Kashmir Also Covered

The Ministry of Finance, Government of India, has announced a significant increase in the Dearness Allowance (DA) for Central Government employees, effective from January 1, 2024, including those in Jammu and Kashmir.

In accordance with the Office Memorandum issued by the Department of Expenditure, the DA rates have been raised from 46% to 50% of the Basic Pay. This decision aims to provide relief to government employees amidst rising inflation and cost of living expenses, specifically addressing the concerns of employees in Jammu and Kashmir.

The term “Basic Pay” in the revised pay structure refers to the pay drawn in the prescribed Level in the Pay Matrix as per the recommendations of the 7th Central Pay Commission (CPC), accepted by the Government. It excludes any other types of pay such as special pay.

It’s noteworthy that the Dearness Allowance will continue to be a distinct component of remuneration and will not be treated as pay within the ambit of FR 9(21).

Furthermore, the payment of Dearness Allowance involving fractions of 50 paise and above will be rounded up to the next higher rupee, while fractions of less than 50 paise will be disregarded.

However, the payment of arrears of Dearness Allowance will not be disbursed before the date of salary disbursement in March 2024.

These revised rates are applicable to civilian employees paid from the Defence Services Estimates, with the associated expenditure being chargeable to the relevant head of the Defence Services Estimates. Separate orders for Armed Forces personnel and Railway employees will be issued by the Ministry of Defence and Ministry of Railways, respectively.

Regarding employees serving in the Indian Audit and Accounts Department, these orders have been issued in consultation with the Comptroller and Auditor General of India, in compliance with Article 148(5) of the Constitution of India.

This announcement brings relief to Central Government employees, including those in Jammu and Kashmir, and underscores the Government’s commitment to addressing their welfare concerns.