After a long wait, the Modi government has decided to reduce dearness allowance (DA) to 28 percent for central employees. Now the center has decided to increase the house rent allowance (HRA Hike) of government employees.
After a long wait, the Narendra Modi government at the Center has reduced the Dearness Allowance of central employees to 28 percent of the basic salary. The new rate will be applicable from July 1, 2021. After this, the central government has now increased the house rent allowance (HRA Hike). The government has passed this order only on 7 July 2021. Due to this, the central government employees can get double benefit. In simple words, along with increasing the DA of central employees, the government has also revised the HRA.
Why did the house rent allowance have to be revised?
In the pass order from the central government on July 7, it has been said that HRA has been increased because it has crossed 25 per cent. According to the Ministry of Finance, now central employees will get HRA at the rate of 27 percent, 18 percent and 9 percent according to their city. Cities are divided into X, Y and Z Classes. Earlier, central employees were getting 24 per cent, 18 per cent and 9 per cent HRA.
Will not be applicable to some employees. The order by
the Ministry of Finance to increase the dearness allowance (DA) of government employees to 28 percent will be applicable from July 1. The Finance Ministry has said that this order will not apply to railway employees and armed forces personnel. For this, separate orders will be issued by the Ministry of Railways and the Ministry of Defense. The DA for central government employees has been increased from 17 per cent to 28 per cent. This hike includes the last three additional installments. However, from the beginning of last year till June 30 this year it will remain at 17 per cent.
