Mumbai, October 4: After receiving the much needed Dearness Allowance (DA) and Dearness Relief (DR) hike, Central government employees are likely to receive some more good news. According to reports, the government is planning to increase the HRA of employees. If the government increased the house rent allowance (HRA) of Central government employees then their salaries is also likely to increase. With the DA hike already announced, a revision in HRA is also expected soon.
A few days ago, the Central government approved a 4 percent DA hike for employees. The decision benefitted Central government employees and pensioners. However, an increase in HRA will act a double bonanza for government employees during the festive season of Dussehra and Diwali. The last time the HRA was increased was in July 2021. Back then, the DA was also increased to 28 percent. Now that the Centre has approved 4 percent DA hike, an increased in HRA can't be ruled out. 7th Pay Commission DA Hike Latest News: Dearness Allowance Hiked by 4%; Check Calculation of Monthly and Annual Salary Raise With 38 Percent DA.
On July 7, 2017, the Department of Expenditure has issued an order and said that when DA crosses 25 percent, the house rent allowance would also be revised. Under the 7th Pay Commission recommendations, for employees in 'X' class cities the HRA will be 27 percent of the basic pay while it will be 18 percent of the basic salary for employees in 'Y' class cities. Similarly, the HRA will be 9 percent for employees of 'Z'. As per reports, the minimum HRA for all three categories will be Rs 5400, Rs 3600 and Rs 1800.
So the HRA of Central government employees will be determined on the category of the city they work in. Reports also suggest that the HRA of government employees working 'X' category cities is likely to increase by 4 to 5 percent, which is similar to DA. At present, the employees of 'X' category cities receive a 27 percent HRA on the basic salary. 7th Pay Commission Dussehra Bonanza: Good News for Railway Employees, Centre Approves Bonus Equivalent to 78 Days Ahead of Festivities.
Meanwhile, a 2 percent hike in HRA is likely for employees of 'Y' category cities who are presently receiving 18-20 percent HRA on the basic salary. Besides, a 1 percent HRA hike can be made for employees working in 'Z' category cities. The Z category employees are receiving an HRA of 9-10 per cent.
(The above story first appeared on LatestLY on Oct 04, 2022 01:38 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).