New Delhi, July 20: Central government employees, getting paid as per the recommendations of the 7th Pay Commission, must be rejoicing nowadays. The Centre has hiked dearness allowance or DA to 28 percent, which will result in fat increase of central government employees' monthly salary. In addition, reports suggest, house rent allowance or HRA would now be raised. Here are latest updates on DA hike, arrears and HRA.
The Ministry of Finance today issued an order to implement the Union Cabinet's decision to hike DA and DR to 28 percent. Last week, the Union Cabinet had approved an 11 percentage point hike in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners with effect from July 1. DA and DR have been fixed at 17 percent of basic pay/pension since a year.
While the Centre has hiked DA and DR to 28 percent from July 1, it said no arrears shall be paid. "Cabinet approves restoring of three instalments of Dearness Allowance and Dearness Relief with effect from 01.07.2021 representing an increase of 11% over the existing rate of 17% of the Basic Pay/Pension. No arrears for the period from 01.01.2020 till 30.06.2021 shall be paid," Jaideep Bhatnagar, principal spokesperson of the government, had tweeted after the Union Cabinet approved hike with effect from July 1. 7th Pay Commission Latest News Today: DA Hiked to 28%, Here's How Much a Central Government Employee's Salary Will Increase.
With respect to hike in HRA, a report by DNA recently said that the Department of Expenditure had on July 7 in 2017 issued an order stating that when the DA 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.
Hence, the HRA will also be revised from August, the report said. 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.
(The above story first appeared on LatestLY on Jul 20, 2021 05:39 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).