7th Pay Commission: Central government employees likely to see hike in HRA by 3% – Details inside
The Central government employees are in for a treat; after receiving a massive hike in Dearness Allowance (DA) last year, the central government has decided to increase their House Rent Allowance (HRA) as well.
According to Zee Business, the overall DA will soon be increased by 34 per cent which will allow the HRA to increase as well. Currently, the DA is at 31 per cent after considering last year’s hike.
As per rules, the HRA increases only when the DA goes above 25 per cent. Last year, the Central government had increased the DA to 28 per cent in July 2021 and soon after the HRA also increased.
Keeping in mind the categories of employees, the HRA is distributed at 27 per cent, 18 per cent and 9 per cent.
According to the latest reports, the HRA is likely to increase by 3 per cent during the course of the next revision. Currently, it is at 27 per cent which will be increased to 30 per cent but this shall only happen if the DA crosses 50 per cent.
As per the memorandum from the DoPT, the moment DA crosses 50 per cent, HRA will become 30, 20 and 10 per cent.