7th pay commission: There is good news for central government employees. The increase in his salary has started. Central employees have recently received the gift of 4% increase in dearness allowance, which is effective from July 1. The festive season is going to be good for them. Bonus, dearness allowance, arrears, everything is being received before Diwali.
According to the Department of Personnel and Training (DoPT), the revision of House Rent Allowance (HRA) for central government employees is done on the basis of dearness allowance. According to the category of cities, the current rate is 27 percent, 18 percent and 9 percent. This increase along with DA is applicable from July 1, 2021. But, according to a memorandum issued by the government in 2016, HRA will be revised from time to time along with DA hike. The last revision was done in 2021. Now the next revision will be in the year 2024.
HRA will increase by 3% more
The next revision in House Rent Allowance will be 3%. The maximum rate of HRA will increase from the existing 27 percent to 30 percent. But, this will happen when the dearness allowance will be 50%. According to the memorandum, once DA crosses 50%, HRA will become 30%, 20% and 10%. The categories of House Rent Allowance (HRA) are according to X, Y and Z class cities. Central employees who fall in X category are getting 27 percent HRA, which will become 30% if DA is 50%. At the same time, for Y Class people it will increase from 18 percent to 20 percent. For Z Class people, it will increase from 9 percent to 10 percent.
How is HRA calculated?
According to the 7th Pay Matrix, the maximum basic salary of central employees is Rs 56,900 per month, then its HRA is calculated at 27 percent. If you understand with simple calculation…
HRA = Rs 56900 x 27/100 = Rs 15363 per month
With 30% HRA = Rs 56,900 x 30/100 = Rs 17,070 per month
Total difference in HRA: Rs 1707 per month
Increase in annual HRA – Rs 20,484
How much HRA was received till now?
When the 7th Pay Commission was implemented, HRA was reduced from the range of 30, 20 and 10 percent to 24, 18 and 9 percent. Also its 3 categories were created X, Y and Z. During that time DA was reduced to zero. At that time itself, it was mentioned in the notification of DoPT that when DA crosses the 25 percent mark, HRA itself will be revised to 27 percent and when dearness allowance crosses 50 percent, HRA will also be revised to 30 percent.
What are X,Y and Z categories in HRA?
Cities with population of more than 50 lakh come in X category. The central employees posted in these cities will get 27 percent HRA. Whereas in Y category cities it will be 18 percent and in Z category it will be 9 percent.
