Central government employees and pensioners saw a notable increase in their compensation starting January 1, 2024. The government announced a 4 per cent hike in the Dearness Allowance (DA) for employees and a 4 per cent increase in Dearness Relief (DR) for pensioners. With this increase, the DA and DR have now reached 50 per cent of the basic salary. Recently, the Employees' Provident Fund Organisation (EPFO) released a circular on July 4, 2024, detailing the changes. 

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The circular highlights that 13 different allowances will see a 25 per cent rise due to the DA hitting 50 per cent of the basic salary. 

These allowances include:

- House Rent Allowance (HRA)- Conveyance Allowance- Hotel Accommodation- Deputation Allowance- Split Duty Allowance

The circular also mentions other allowances such as:

- Touch Location Allowance- Special Allowance for children of women with disabilities- Children Education Allowance- Reimbursement of Travelling Charges for travel within the city- Reimbursement of Food Charges or Daily Allowance- Journeys performed by own car/taxi, auto rickshaw, or own scooter- Rate of transportation of personal effects by road on transfer- Dress Allowance

According to the 7th Pay Commission (7th CPC) rules, when the DA reaches 50 per cent, allowance rates increase by 25 per cent. This ensures fair compensation for central government employees and reflects the government's commitment to their well-being and security.