7th pay commission: This allowance of central employees will increase by 3% after January 31

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Central employees are waiting for 31 January 2024. He will get two gifts on this day. The first gift will be in the form of Dearness Allowance (DA Hike). They will get new and increased dearness allowance from January 2024 on the basis of half year from July 2023 to December 2023.

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However, it will be announced in March 2024. At the same time, another big good news is waiting for them. After January 31, there will be another increase of 3% in the allowance of central government employees. This will be the most beneficial gift after 2021.

This allowance will increase by 3 percent

Dearness Allowance (DA) of central employees will soon cross 50 percent. At present dearness allowance is being paid at the rate of 46%. Along with dearness allowance, there will be a rise in another allowance of central employees. House Rent Allowance (HRA) is also certain to increase. The central government has clarified the rules regarding this increase. This rule is related to dearness allowance only.

In the year 2021, there was a revision in HRA when dearness allowance crossed 25%. In July 2021, as soon as DA crossed 25%, there was a jump of 3% in HRA. The current rates of HRA are 27%, 18% and 9%. It is expected that dearness allowance will soon reach 50 percent. If this happens, there will be a revision of 3 percent in HRA once again.

HRA benefits will be available according to cities

According to DoPT, the revision in House Rent Allowance (HRA) for central employees is done on the basis of dearness allowance. All employees are going to get the benefit of increased HRA. According to the category of the city, HRA is available at the rate of 27 percent, 18 percent and 9 percent. The government had issued a memorandum for this in the year 2015. In this HRA was linked to DA. Its three rates were fixed. 0, 25, 50 percent.

HRA will be maximum 30 percent

The next revision in House Rent Allowance will be 3%. The maximum current rate is 27 percent. After revision HRA will be 30%. But, this will happen when dearness allowance reaches 50%. According to the memorandum, as soon as DA reaches 50 percent, HRA will become 30%, 20% and 10%. The categories of House Rent Allowance (HRA) are according to X, Y and Z class cities. Central employees who fall in X category are getting 27 percent HRA, which will become 30% if DA is 50%. At the same time, for Y Class people it will increase from 18 percent to 20 percent. For Z Class people, it will increase from 9 percent to 10 percent.

HRA is available from X,Y and Z categories?

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.

How is HRA calculated?

According to the 7th Pay Matrix, the maximum basic salary of central employees on grade pay at level-1 is Rs 56,900 per month, then their HRA is calculated at the rate of 27 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 1,707 per month
Increase in annual HRA – Rs 20,484

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