7th pay commission: The next revision in house rent allowance will be 3%. The maximum rate of HRA will increase from the existing 27 percent to 30 percent. But, this will happen when the dearness allowance will be 50%.
7th pay commission: There is good news for central government employees. Now the continuous increase in his salary has started. In March 2023, the government increased his dearness allowance (DA) to 42 per cent. Now the figures of AICPI index till June have come. This means that dearness allowance, which will be applicable from July 2023, will also start getting. There is also a possibility of an increase of 4 percent in this. But, it will take some time to announce it. However, it will be implemented only from 1 July 2023. With the increase in DA Hike, the way to increase other allowances is also getting cleared. Actually, after DA Hike, now the next revision is of HRA (House Rent Allowance). Let us know when and how much it is likely to increase.
After DA hike, when will HRA revision happen?
The HRA was revised in July 2021 as soon as the dearness allowance crossed 25%. The existing rates of HRA are 27%, 18% and 9%. However, now dearness allowance has increased to 42 per cent. Now the question is, after the ever-increasing DA, when will be the next revision of HRA?
Government had told when will be the next HRA revision
According to the Department of Personnel and Training (DoPT), the revision of House Rent Allowance (HRA) for central government employees is done on the basis of dearness allowance. According to the category of cities, the current rate is 27 per cent, 18 per cent and 9 per cent. This increase is applicable from 1 July 2021 along with DA. But, according to a memorandum issued by the government in 2016, the HRA will be revised from time to time along with the DA hike. The last revision has been done in 2021. Now the next revision will be in the year 2024.
HRA will increase by 3% more
The next revision in house rent allowance will be 3%. The maximum rate of HRA will increase from the existing 27 percent to 30 percent. But, this will happen when the dearness allowance will be 50%. According to the memorandum, HRA will be 30%, 20% and 10% when DA crosses 50%. The category of House Rent Allowance (HRA) is according to X, Y and Z class cities. The central employees who fall in the X category are getting 27% HRA, which will be 30% if DA is 50%. At the same time, for Y class people, it will increase from 18 percent to 20 percent. 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 56,900 per month, then its HRA is calculated at 27 percent. If you understand from simple calculation…
- HRA = Rs 56900 x 27/100 = Rs 15363 per month
- At 30% HRA = Rs 56,900 x 30/100 = Rs 17,070 per month
- Total difference in HRA: Rs 1707 per month
- Increase in annual HRA – Rs 20,484
Till now how much HRA was received
When the 7th Pay Commission came into effect, the HRA was reduced from the range of 30, 20 and 10 per cent to 24, 18 and 9 per cent. Along with this, 3 categories were made 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 mark of 25 per cent, HRA itself will be revised to 27 per cent and when DA crosses 50 per cent, HRA will also be revised to 30 per cent.
What is X,Y and Z category in HRA?
Cities with a population of more than 50 lakh come in the X category. The central employees posted in these cities will get 27 per cent HRA. Whereas, in Y category cities it will be 18 percent and in Z category it will be 9 percent.
