7th Pay Commission: The good news for central government employees is that the government may soon increase the HRA i.e. House Rent Allowance by 3%. HRA was first revised in July 2021.
After the increase in HRA, the salary received by the government employees will increase. HRA is given on the basis of the city in which the government employees work. House Rent Allowance is for salary class employees who live in a rented house. Employees are divided into three categories depending on the need and city of the house.
HRA is divided into 3 categories
House Rent Allowance is divided into 3 categories. These categories are X, Y and Z.
(i) Areas with a population of 50 lakhs and above come in the ‘X’ category. Employees falling in this category are given HRA 24 percent as per the recommendation of the Central Pay Commission (CPC) under the 7th Pay Commission.
(ii) ‘Y’ stands for area with population between 5 lakh to 50 lakh. The employees living here are given HRA of 16% of the basic salary.
(iii) Those employees come under ‘Z’ category where the population is less than 5 lakhs. Here HRA is given at 8%.
HRA can be increased to this much
Now employees can get HRA increased to 27% for X category, 18% for Y category and 9% for Z category. On the other hand, when the dearness allowance reaches above 50 per cent, the HRA will increase to 30 per cent, 20 per cent and 10 per cent respectively.
When HRA can be revised
The Modi government may soon increase the HRA as well. For this notification has already been issued by the government. At present, the DA received by the employees is currently 42 per cent. Dearness allowance is to be increased once again in July. It is believed that now it can increase to 46 percent.
