7th Pay Commission: Good news for central government employees. The Central Government has now also amended the House Rent Allowance (HRA) for Central employees after announcing an increase in Dearness Allowance (DA). From August, central government employees will get enhanced HRA as per revised rates. 7th Pay Commission: 11% increase in Dearness Allowance and Dearness Relief will benefit government employees like this, learn details.
The Department of Expenditure had issued an order on July 7, 2017, stating that when dearness allowance exceeds 25 percent, the house rent allowance will be revised. Dearness Allowance has been increased to 28 percent from July 1, which has also led to a revision of house rent allowance.
How much has been increased in house rent allowance in the 7th Pay Commission
House rent allowance for different categories has been increased by 1-3 percent after the amendment. The HRA for cities in the ‘X’ category will be 27 percent of the basic pay. Similarly, for cities in the ‘Y’ category, it will be 18 percent and for ‘Z’ category cities it will be 9 percent of the basic pay. Currently, for all three categories, it is 24 percent, 16 percent, and 8 percent.
Cities with a population of more than 5million fall under the ‘X’ category. Similarly, cities with a population of more than 5 00,000 falls under the ‘Y’ category. Cities with a population of less than 5 00,000 falls under the ‘Z’ category.
The Modi government has given a big boost after a year and a half by increasing dearness allowance for central employees and dearness relief to pensioners. Dearness Relief (DR) for Central Employees and Dearness Relief for Pensioners has been increased from 17 to 28 percent. It will come into effect from July 1, 2021.
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