7th Pay Commission: In the notification of DoPT, it was mentioned that when DA crosses the 25 percent mark, then HRA will also be revised itself.
7th Pay Commission: Dearness Allowance (DA Payment) is being paid to central employees at the rate of 28 percent. After the increase in Dearness Allowance (DA), other allowances with salary have also increased. The biggest advantage of these allowances is found in House Rent Allowance (HRA). The HRA itself gets revised if the dearness allowance is 25 percent more. The government had increased the Dearness Allowance in July. After this there has been an increase in the House Rent Allowance.
HRA started getting 27 percent
According to the notification of DoPT, revision in House Rent Allowance (HRA) for central employees has been done on the basis of dearness allowance (DA pay matrix) only. The government has now started including other central employees in the increased HRA. All the employees have started getting the benefit of increased HRA. Therefore, according to the category of the city, 27 percent, 18 percent and 9 percent HRA is being given. This increase has also come into effect from 1 July 2021 along with DA.
How much will be the House Rent Allowance?
The category of House Rent Allowance (HRA) is according to the X, Y and Z class cities. Meaning the central employees who fall in the X category will now get more than Rs 5400 per month HRA. After this, Rs 3600 per month for Y class and Rs 1800 per month for Z class.
How is HRA Calculated?
According to the 7th Pay Matrix, the maximum basic salary of central employees is Rs 56000 per month, then how much HRA will be made at the rate of 27 percent, it can be understood by simple calculation.
HRA = Rs 56000 x 27/100 = Rs 15120 per month
First HRA = Rs 56000 x 24/100 = Rs 13440 per month
How much HRA was available earlier
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 the DA crosses the 25 percent mark, then the HRA will also be revised itself.
What is X, Y and Z category?
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.
