7th pay commission latest news: Dearness allowance of central employees was revised to 50 percent in March. After this there is discussion that in the next revision the dearness allowance will be reduced to zero. But, there is no official information regarding this yet.
7th pay commission latest news: Good news is about to come for central employees. The increase in his Dearness Allowance (DA) in the month of March has changed many calculations. The first dearness allowance will now start from zero and the second dearness allowance (DA hike) has been revised to 50 percent. But, now the question is that what will happen to HRA when the calculation of DA starts from zero? Let us know.
Will dearness allowance be revised?
The dearness allowance of central employees was revised to 50 percent in March. After this there is discussion that in the next revision the dearness allowance will be reduced to zero. But, there is no official information regarding this yet. However, citing the rules it is being said that this can happen. After July, dearness allowance will be reduced to zero. Central employees are also waiting for this. But let us tell you that if this happens, two things will be affected. Dearness allowance will not only be zero but the HRA received by the employees will also be revised once again. Because, the rule of revision will apply here also.
What will be the change in HRA?
Actually, if we understand the DA Hike calculation, then the rate of HRA is 24, 16, 8 percent till it is 0-24 percent. At the same time, as soon as dearness allowance reaches 25 percent, HRA is revised to 27, 18, 9 percent. In case of reaching 50 percent dearness allowance, HRA once again becomes 30, 20, 10 percent. In such a situation, if dearness allowance is reduced to zero, then the maximum limit of HRA will also be revised to 24 percent. Currently HRA is 30% in X cities category, 20% in Y category, 10% in Z cities category.
Why will there be revision?
Actually, when the 7th Pay Commission was implemented in the year 2016, the government had changed the calculation of dearness allowance. After this, the rates of dearness allowance were also revised to zero. After this, HRA was also linked to dearness allowance. In this, a rule was made to do revision twice. First when dearness allowance will be 25 percent and second when it will be 50 percent. Till it reaches 25 percent, the minimum rates of HRA will be 24, 16, 8 percent.
When will dearness allowance become zero?
There is still doubt on whether Dearness Allowance (DA will be zero) will be zero. Actually, there is no such announcement officially. At the same time, there is no such circular from the Labor Bureau either. Therefore, it is difficult to say whether dearness allowance will be changed after 50 percent or not. At the same time, even if it is reduced to zero, it will be reflected in the rates of dearness allowance applicable from July. However, it may take time till September or October for its announcement.
Also Read-
- Bank FD interest rate: These bank is giving 8.75% interest only on FD of 7 days to 12 months, see details here
- EPF Withdrawal Rules 2024: Big news! You may have to pay a heavy tax of 20% on withdrawing money from PF account, know why?
- Income Tax Benefits: Senior and super senior citizens get these 8 tax benefits, definitely take advantage.
