7th Pay Commission: Great news for central employees. In fact, the government has increased the dearness allowance (DA Hike) of employees to 50 percent from January 2024. As soon as DA crosses 50 percent, HRA itself is revised. Let us tell you that the salary of the employees has increased by Rs 20484 in one stroke.
7th pay commission HRA Hike: Good news has come for central government employees in the year 2024. His dearness allowance (DA) has increased to 50 percent. It has been implemented from January 1, 2024. The increased dearness allowance will be paid in April. But, along with the Dearness Allowance (DA Hike), other allowances have also increased. The biggest change among these allowances has come in House Rent Allowance (HRA).
With dearness allowance crossing 50%, HRA has also been revised. The government has increased the Dearness Allowance to 50 percent from January 2024. As soon as DA crossed 50 percent, HRA itself got revised. The increased rates of HRA are now 30%, 20% and 10%. Employees will start getting its benefits from April.
Employees are getting the benefit of HRA-
Department of Personnel and training- According to DoPT, the revision in House Rent Allowance (HRA) for central employees has been done on the basis of dearness allowance. All employees will get the benefit of increased HRA. According to the category of the city, HRA is being given at the rate of 30 percent, 20 percent and 10 percent. This increase along with DA has been implemented from January 1, 2024. The government had said in a memorandum issued in 2016 that HRA would be revised from time to time with increasing DA.
Maximum 3% increase in HRA-
The highest revision in House Rent Allowance is 3%. The maximum rate was 27 percent, which has been increased to 30 percent. According to the memorandum, there was a provision for revision of HRA by 30%, 20% and 10% if DA crossed 50%. The categories of House Rent Allowance (HRA) are according to X, Y and Z class cities. Central employees who fall in X category will get 30 percent HRA. At the same time, for Y Class people it has become 20 percent. For Z Class people, it has increased from 9 percent to 10 percent.
How is HRA calculated?
According to the 7th Pay Matrix, the maximum basic salary of central employees at pay grade level-1 is Rs 56,900 per month, then its HRA is calculated at 30 percent. If you understand with simple calculation…
HRA = Rs 56,900 x 27/100 = Rs 15,363 per month
With 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
What rule was made regarding HRA?
When the 7th Pay Commission was implemented, HRA was reduced from the range of 30, 20 and 10 percent to 24, 18 and 9 percent. Also its 3 categories were created 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, HRA itself will be revised to 27 percent and when dearness allowance crosses 50 percent, HRA will also be revised to 30 percent.
What are X,Y and Z categories in HRA?
Cities with population of more than 50 lakh come in X category. The central employees posted in these cities will get 27 percent HRA. Whereas in Y category cities it will be 18 percent and in Z category it will be 9 percent.
