7th pay commission HRA News: There is good news for central employees. With the increase in DA, there will be revision in HRA too. At present, it is being paid at the rate of 27 per cent.
Central government employees are currently being paid dearness allowance at the rate of 31%. Along with Dearness Allowance (DA Hike), other allowances have also increased. The most important and important allowance among these allowances is House Rent Allowance. HRA is also revised after the dearness allowance crosses 25%.
The government had increased the Dearness Allowance to 28 percent in July 2021. Earlier, dearness allowance was frozen at 17 per cent. HRA revision has also been done after the increase in DA. The current rates of HRA are 27%, 18% and 9%. However, in October, the government increased the dearness allowance to 31 percent. Now the question is, when will the next revision of HRA happen after the increase in DA?
Employees are getting the benefit of HRA
According to the Department of Personal and Training- DoPT, revision in House Rent Allowance (HRA) for central government employees has been done on the basis of dearness allowance. All the employees have started getting the benefit of increased HRA. According to the category of the city, HRA is being given at the rate of 27 percent, 18 percent and 9 percent. This hike along with DA is applicable from July 1, 2021. But, the government had said in a memorandum issued in 2015 that HRA would be revised from time to time with increasing DA. A revision has been done. When will be the next revision and for how much?
HRA will increase by 3%
The next revision in house rent allowance will also be of 3%. The HRA will be increased to 30 percent from the existing maximum rate of 27 percent. But, this will happen only when Dearness allowance revise will cross 50%. According to the memorandum, if DA crosses 50%, HRA will become 30%, 20% and 10%. The category of House Rent Allowance (HRA) is according to the X, Y and Z class cities. Central employees who fall in the X category are getting 27 percent HRA, which will become 30% if there is 50% DA. At the same time, it will increase from 18 percent to 20 percent for Y class people. 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 56,000 per month, then his HRA is calculated at 27%. If you understand by simple calculation…
- HRA = Rs 56000 x 27/100 = Rs 15120 per month
- Having 30% HRA = Rs 56,000 x 30/100 = Rs 16,800 per month
- Total difference in HRA: Rs 1680 per month
- Increase in annual HRA – Rs 20,160
How much HRA did you get till now?
When the 7th Pay Commission came into force, the HRA was reduced from 30, 20 and 10 per cent to 24, 18 and 9 per cent. Also it had made 3 categories 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, then the HRA itself will be revised to 27 percent and when the dearness allowance crosses 50 percent, then the HRA will also be revised to 30 percent.
What is the category X, Y and Z in HRA?
Cities with a population of more than 50 lakhs come in the X category. Central employees posted in these cities will get 27% HRA. At the same time, it will be 18 percent in Y category cities and 9 percent in Z category.
