DA HRA Hike: Recently a big update has come regarding dearness allowance of employees. The government has given two big good news to the employees. Let us tell you that the government has confirmed 4 percent increase in dearness allowance of central employees. After this, HRA is going to increase. Now the salary of the employees will increase…
New Delhi: There is good news for central government employees. The increase in his salary has started.
Recently the new dearness allowance of central employees has been confirmed. However, there is still time for its announcement. A decision on this is expected by March. But, the matter will not stop only at dearness allowance.
After DA Hike, now another good news is waiting for them. Actually, the House Rent Allowance of the employees is also going to increase. 50 percent dearness allowance has been confirmed. Now after this is the number of revision in HRA. There is to be an increase of 3 percent in this.
HRA will increase after DA hike-
4 percent dearness allowance has been confirmed. The Union Cabinet will also approve it in March. In this situation, dearness allowance to central employees will be 50 percent. It will be implemented from January 1, 2024. Let us tell you, in July 2021, when dearness allowance crossed 25 percent, there was a revision of 3 percent in HRA.
At that time the upper limit of HRA was increased from 24 percent to 27 percent. Now there will be a revision in HRA once the dearness allowance reaches 50 percent. This will once again increase by 3 percent.
HRA of metro cities i.e. cities falling in X category will increase to 30 percent. Employees working in these cities will be paid house rent allowance at the rate of 30 percent.
Government told when HRA will increase-
According to the Department of Personnel and Training (DoPT), the revision of House Rent Allowance (HRA) for central employees is done on the basis of dearness allowance.
The categories of House Rent Allowance (HRA) are according to X, Y and Z class cities. According to the category of cities, the current rate is 27 percent, 18 percent and 9 percent. This increase along with DA is applicable from July 1, 2021.
But, the government had issued a memorandum in the year 2016. In which there were instructions to revise HRA along with DA Hike from time to time. There was a revision in HRA when the dearness allowance increased to 25 percent in 2021. Now there will be next revision in HRA after 50 percent dearness allowance.
What is the formula for HRA calculation?
There is a formula to calculate HRA. In the present situation, house rent is given to central employees according to the category of the city. The government has divided cities/towns into X, Y and Z categories.
Where the government gives 27 percent house rent allowance in X category, 18 percent in Y category and 9 percent in Z category. This house rent allowance is decided according to the basic salary of the employee.
How much will be the HRA for which city?
1. In X category – Delhi, Ahmedabad, Bengaluru, Mumbai, Pune, Chennai and Kolkata have been kept in X category. The employees working here get HRA of 27 percent of the basic pay.
2. In Y category- Patna, Lucknow, Visakhapatnam, Guntur, Vijayawada, Guwahati, Chandigarh, Raipur, Rajkot, Jamnagar, Vadodara, Surat, Faridabad, Ghaziabad, Gurgaon, Noida, Ranchi, Jammu, Srinagar, Gwalior, Indore, Bhopal, Jabalpur, Ujjain, Kolhapur, Aurangabad, Nagpur, Sangli, Solapur, Nashik, Nanded, Bhiwadi, Amravati, Cuttack, Bhubaneswar, Rourkela, Amritsar, Jalandhar, Ludhiana, Bikaner, Jaipur, Jodhpur, Kota, Ajmer, Moradabad, Meerut, Bareilly, Cities like Aligarh, Agra, Lucknow, Kanpur, Allahabad, Gorakhpur, Firozabad, Jhansi, Varanasi, Saharanpur come. The employees living here get HRA of 18 percent of the basic pay.
3. In Z category- Apart from the cities of X and Y category, all other cities have been kept in Z category. Employees working in these cities get HRA of 9 percent of the basic pay.
How will the HRA of employees increase?
The next revision in House Rent Allowance will be in March 2024. As soon as dearness allowance reaches 50 per cent, the maximum rate of HRA will increase from the existing 27 per cent to 30 per cent. This will be for employees falling in X category.
In the second category i.e. Y, the revision will be 2 percent. Its current level is 18%, it will be increased to 20%. After this, Z category employees will get 10% HRA, increased by 1 percent.
When DA became zero, HRA was reduced.
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 reaches the 25 percent mark, HRA will be automatically revised and there will be an increase of 3, 2, 1 percent according to the category. Now when dearness allowance reaches 50 percent, HRA will increase again in the same manner.
