Delhi, December 1: Months after central government employees received 4% hike in their Dearness Allowance, media reports are now claiming that the Central government employees are likely to get hike on HRA soon on basis of 7th pay commission. If the Centre increases the house rent allowance (HRA) of the government employees then their salaries is also likely to increase. A revision in HRA is expected anytime soon by the central government.
According to an an order from the Department of Expenditure in 2017, when the DA crosses 25 percent, the house rent allowance would also be revised. As part of the 7th Pay Commission recommendations, the category of the city in which government employees work determines their HRA. 7th Pay Commission: Cabinet Likely To Take Decision on 18-Months DA Arrears Soon, Government Employees To Receive Rs 2.18 Lakh in Three Installments; Check Latest Update
The three categories are X, Y, and Z. HRA is now paid at a rate of 27 percent of basic income to employees in the X category cities, and 18 percent to those in the Y category cities. And in the similar manner, the HRA will be 9 percent for employees of 'Z'. However, the minimum HRA for all three categories will be Rs 5400, Rs 3600 and Rs 1800. 7th Pay Commission Latest News Updates: Next DA Hike Likely To Be Announced in March 23, Implementation of 8th CPC Also on Cards
Reports further suggest that the HRA of government employees working 'X' category cities is likely to increase by 4 to 5 percent. Right now, the employees of 'X' category cities receive a 27 percent HRA on the basic salary.
According to reports, a 2 percent hike in HRA is likely for employees of 'Y' category cities and 1 percent HRA hike is expected for employees working in 'Z' category cities.
The Central government employees must note that the last time the HRA was increased was in July 2021 and that time, the DA was also increased to 28 percent. Now that the Centre has approved 4 percent DA hike for the government employees on basis of 7th pay commission recommendations, so an increase in HRA can't be ruled out.
(The above story first appeared on LatestLY on Dec 01, 2022 03:01 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).