It is being expected in many media reports that in view of the festive season, the government can give the benefit of this ‘double bonus’ to its employees. Getting HRA money at an increased rate can lead to a big increase in salary.
This is great news for government employees. Recently, his Dearness Allowance (DA) and Dearness Relief (DR) for pensioners have been increased. Now this week central employees will be able to take advantage of double bonus. Two months ago, the central government decided to increase the DA of central employees from 17% to 28%. This new announcement has been implemented from July 1. Similarly, for retired central pensioners, the government also decided to increase the DR. Soon after both these decisions, the government announced to increase the house rent allowance for government employees.
Issuing these orders, the government said that the House Rent Allowance (HRA) and DA of government employees will be increased on the basis of their basic salary. The current rule says that the HRA of a government employee increases by 3% when the DA crosses 25% of the basic payment. In the year 2017, the Expenditure Department had issued this rule that the HRA of the employee whose DA exceeds 25% of his basic payment, his HRA will be revised accordingly. On this basis, recently the Central Government has announced HRA of its employees.
The government will give the benefit of double bonus to the central employees by giving HRA and salary together or will get the money for both the items separately, no government decision has come out about this. But it is being expected in many media reports that in view of the festive season, the government can give the benefit of this ‘double bonus’ to its employees. Getting HRA money at an increased rate can lead to a big increase in salary.
What do you get in HRA hike?
HRA or House Rent Allowance is an essential part of the salary of any employee. In such a situation, if there is any change in the salary of the employee, then its effect will be visible on the HRA. With the increase in DA, the basic salary will increase and with this the HRA will also increase. Since there has been a change in DA and it is equivalent to an increase of 25 per cent from the basic salary, the HRA has also increased. HRA for central employees has been increased to 27 percent. This revised rate of house rent allowance can be found by adding it to the salary at the end of September.
How HRA is determined
The amount of HRA is decided according to the categories of the cities. HRA is given according to the category of the city in which the government employee lives. For this, the government has divided the cities into three categories. These three categories are X, Y and Z. The HRA for X category is 27% and for Y and Z category HRA is fixed at 18 and 9% respectively. Cities in the X category are those whose population is more than 50 lakhs. Y and Z category cities are those in which more than 5 lakh and less than 5 lakh people live respectively.
How much can the salary increase
The monthly salary of any Level 1 government employee is available in the range of Rs 18,000 to 56,9000. This means that the employee whose basic salary is Rs 18,000, he will get Rs 3060 as DA till June 2021 with 17% DA rate. Although the DA of a government employee has been increased by 28% from July 1, 2021, then Rs 5040 will now come in their hands as DA. That is, earlier 3060 rupees were available, which will now get 5040 rupees. According to this, there will be an increase of Rs 1980 in the monthly salary of a government employee of this category.
