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7th Pay Commission: The basic salary of central employees will increase by ₹ 9 thousand! HRA will also increase

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DA Hike: Regarding inflation in the country, RBI has expressed apprehensions that inflation may increase further in the coming times. This is the reason why RBI is going to do monetary policy ahead of time this time in November.

Dearness Allowance (DA Hike) of central employees is increased twice a year under the Seventh Pay Commission. How much DA will increase, it depends on the AICPI Index. Many countries around the world are facing the problem of inflation.

Regarding inflation in the country, RBI has expressed apprehensions that inflation may increase further in the coming times. This is the reason why RBI is going to do monetary policy ahead of time this time in November. But if we talk differently from inflation, then it is easy to increase good dearness allowance in the coming time.

Dearness Allowance likely to increase by 4 percent

In the last week of September, an increase of 4 percent in Dearness Allowance (DA Hike) has been announced. It has been implemented from 1st July 2022. The next revision in DA will be from January 2023. Experts say that due to the situation of inflation, dearness allowance may again increase by 4 percent in the coming days. It is expected that the dearness allowance will increase to 42 percent in January.

Dearness allowance has been reduced to zero in 2016, the rule of dearness allowance is that as soon as it reaches 50 percent, it will be reduced to zero. When the 7th Pay Commission came into force in 2016, dearness allowance was reduced to zero. According to 50 percent, the money that the employees will be getting as allowance, will be added to the basic salary. For example, if the basic salary is Rs 18000, he will get 50 percent DA of Rs 9000. But after 50 percent, adding it to the basic salary, the dearness allowance will again be reduced to zero.

This work done in 2016 The experts also say that the rule is that the entire DA received by the employees should be added to the basic salary. But in doing so many times financial situation comes in the way. However, this was done in 2016. In the year 2006, when the 6th pay scale was implemented, 187 percent DA was being available till December in the fifth pay scale. The full DA was merged with the basic pay.

3 percent HRA will also increase

The next revision in House Rent Allowance (HRA) will also be of 3 percent. HRA will be increased to 30 percent from the existing maximum rate of 27 percent. But, this is possible only when Dearness Allowance (DA) crosses 50%. According to the memorandum, if DA crosses 50%, HRA will become 30%, 20% and 10%. The category of House Rent Allowance (HRA) is according to the X, Y and Z class cities.

Central employee falling in X category is getting 27% HRA, it will be 30% if 50% DA. At the same time, for Y category people, it will increase from 18 percent to 20 percent. For Z category people it will increase from 9 percent to 10 percent.

 

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