7th Pay Commission: There is doubly good news for central employees. Not only is there going to be an increase in their Dearness Allowance, but an increase in their House Rent Allowance is also set. In such a situation, know what is the new update of increase in dearness allowance and house rent allowance of central employees and till when their DA and HR are expected to increase.
There is doubly good news for central employees. Not only is there going to be an increase in their Dearness Allowance, but an increase in their House Rent Allowance is also set. In such a situation, know what is the new update of increase in dearness allowance and house rent allowance of central employees and till when their DA and HR are expected to increase.
There is a possibility of increase in dearness allowance
At present, central employees are getting dearness allowance at the rate of 42 percent. According to the figures of inflation, it is expected to increase by 4 percent. However, only after the final figures from January to June come, it will be decided that how much DA will increase. There will be a review of dearness allowance and dearness relief in July 2023. If there is an expected 4 per cent increase in the DA of central employees, then their dearness allowance will increase to 46 per cent.
When will there be an increase in house rent allowance
According to the rules, when the dearness allowance crosses 50 per cent, then there will be an increase in the HRA of the employees. That is, after July 2023, when the next review of dearness allowance will take place in January 2024, then if the DA crosses 50 percent, then the HRA of the employees will increase.
Currently, the rates of HRA given to central employees are 27 per cent, 18 per cent and 9 per cent. These three categories are decided according to the city, which are divided into X, Y and Z.
How much will the House Rent Allowance increase
under the Seventh Pay Commission, the next revision in the House Rent Allowance will be three percent. That is, on crossing 50 percent of DA, the HRA of the employees falling in the X category will be 30 percent. HRA of Y category employees will be increased from 18 percent to 20 percent. Similarly, the HRA of Z category employees will increase from 9 percent to 10 percent.
