7th Pay Commission: Good news for central govt employees, BIG jump in HRA


7th Pay Commission: The central government is raining goodies on central employees. After the three per cent increase in DA, the central government is preparing to give another gift to central employees.

According to reports, the government may soon increase the house rent allowance of central employees. It is being reported that this increase may be up to 3 per cent.

The DA of central government employees has been increased by 3 per cent to 31 to 34 per cent. After the increase in DA, now the central employees are also expecting an increase in HRA. The last increase in HRA was seen in July last year. Then DA had crossed the figure of 25 per cent. 

At that time, the government had increased the DA to 28 per cent. Now that the government has increased the DA, the HRA may also be revised. If the HRA is increased, the salaries of government employees may see a big increase.

This is how HRA is determined

A city with a population of over 5 million falls under the ‘X’ category. On the other hand, those with a population of more than 5 lakhs fall into the ‘Y’ category and cities with a population of less than 5 lakhs fall under the ‘Z’ category. HRA for government employees is determined by the category of the city in which they work.

Class X employees are getting HRA at the rate of 27% of their basic salary. Y category workers gets HRA at the rate of 18 to 20 per cent. Z category employees get HRA at the rate of 9 to 10 per cent. These rates vary by area and city. The minimum HRA for all the three categories is Rs. 5400, 3600 and 1800.

According to reports, the HRA of government employees may soon increase to 3 per cent. Employees in X category cities may see a 3 per cent increase in their HRA, while Y category cities may see a 2 per cent increase in their allowance. In addition, the HRA of employees in Z category cities can also increase up to 1 per cent.

At present, central employees are getting HRA at the rates of 27, 18 and 9 per cent. HRA was revised when DA crossed 25 per cent in July last year and when DA was increased to 28 per cent in July 2021 and then HRA was revised even after DA crossed 25 per cent. Now the DA of central employees has increased from 31 per cent to 34 per cent, so there is a possibility that the HRA may be increased by 3 per cent soon.

first published:June 14, 2022, 3:09 p.m.

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