7th Pay Commission: After increasing the dearness allowance of the central government employees, now it is the turn of the house rent allowance. Actually, there is a provision to increase HRA with DA hike.
7th Pay Commission HRA Hike: After the increase in dearness allowance, great news is coming for the central government employees. There is a preparation to increase the House Rent Allowance after the Dearness Allowance (DA) has been increased from 31 to 34 percent. Actually, with the increase in DA, other allowances also increase.
HRA revision happens along with DA hike
HRA was revised in July when dearness allowance went above 25%. The government had increased the Dearness Allowance to 28 percent in July 2021. Currently, the HRA rates are 27%, 18% and 9%. Now that dearness allowance has increased to 34%, then HRA is also expected to increase. But the question is, when will the next revision of HRA happen after DA?
Change in HRA on the basis of dearness allowance
According to the Department of Personnel and Training (DoPT), the change in HRA of Central Government Employees is on the basis of dearness allowance. The existing 27 per cent, 18 per cent and 9 per cent rates are applicable from July 1, 2021. In the memorandum issued by the government in 2016, it was said that while increasing the HRA, the DA will be revised from time to time.
Possible increase of three percent
The next revision in house rent allowance can be of 3%. The maximum HRA rate will be increased to 30 percent from the existing 27 percent. But, this will happen when the Dearness allowance revise will cross 50%. According to the memorandum, if DA crosses 50%, HRA will become 30%, 20% and 10%.
