7th pay commission: Now a few days are left for the beginning of the year 2024. This new year is going to be very special for the central employees. This year, not only the Dearness Allowance (DA) of the employees will increase but the House Rent Allowance i.e. HRA will also increase. It means to say that there will be double good news in the new year.
How much will DA increase?
If media reports are to be believed, then there may be an increase of 4 to 5 percent in dearness allowance for the half year from January to June. If the allowance increases even by 4 percent, then the DA of central employees will increase to 50 percent. Let us tell you that at present the allowance is 46 percent. The government had increased the allowance by 4 percent for the second half of the year 2023. Due to this, the allowance for the July to December half year has increased to 46 percent. If there is an increase of 5 percent in the allowance then it will cross 50 i.e. 51 percent.
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HRA increases as allowance increases
As soon as the allowance of central employees is 50 percent or more, HRA will be revised. According to the recommendation of the Seventh Pay Commission, HRA will be revised when the allowance is 50 percent or more. For increase in HRA, cities have been divided under three categories – X, Y & Z.
How much will HRA increase?
Currently, employees living in cities/towns X,Y & Z are getting 27, 18 and 9 percent HRA respectively. But after the increase, if the central employee lives in X category cities/towns, then his HRA will increase to 30 percent. Similarly, the HRA rate for Y category will be 20 percent and for Z category it will be 10 percent. It means that due to the increase in HRA along with DA in the new year, there will be a huge increase in the salary of central employees.
