New Delhi, July 17: There is a piece of good news for central government employees receiving pay as per the 7th Pay Commission recommendations. The house rent allowance, commonly known as HRA, will be revised from August 1. After the revision, the HRA will increase by 1-3 percent for employees under different categories. The development is the result of restoration of full benefits of dearness allowance (DA) from July 1. 7th Pay Commission Latest News Update: List of Major Developments on DA Hike and Arrears Happened This Week.
Earlier this week, the Centre approved to hike DA to 28 percent from existing 17 percent. According to a report by DNA, the Department of Expenditure had on July 7 in 2017 issued an order stating that when the dearness allowance crosses 25 percent, the house rent allowance would be revised. With effect from July 1, central government employees will get 28 percent of their basic pay as DA, under the 7th Pay Commission. 7th Pay Commission Latest News Today: DA Hiked to 28%, Here's How Much a Central Government Employee's Salary Will Increase.
Therefore, the HRA will also be revised from August, said the report. For central government employees in 'X' class cities, the HRA will be 27 percent of the basic pay. Similarly, it will be 18 percent of basic pay for employees in 'Y' class cities and 9 percent in 'Z' class cities, the report added. Currently, employees in 'X', 'Y' and 'Z' cities get 24 percent, 16 percent and 8 percent of their basic pay as HRA respectively, under the 7th Pay Commission.
It may be recalled that cities whose population is more than 50 lakh come under the 'X' category. Similarly, cities with population more than 5 lakh fall under 'Y' category. Cities with a population of less than 5 lakh come under the 'Z' category. When the dearness allowance is fixed at 50 percent of basic pay, the maximum house rent allowance will increase to 30 percent.
(The above story first appeared on LatestLY on Jul 17, 2021 11:27 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).