House Rent Allowance Increase: Good news! Date confirmed, there will be a big jump in salary..!


7th pay commission latest news: The next one year is going to be good for central employees. Good news can come for them one after the other. The Central Government has recently increased their dearness allowance to 42%.

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Now it is the turn of the second allowance to increase. The speed with which inflation is increasing will also increase the allowances received by the central government employees. Dearness Allowance (DA) is revised every 6 months. Now the next dearness allowance will increase on the CPI-IW data from January to June 2023. Experts are assuming that DA will increase in the future also in the head of 4% only. In such a situation, there can be a new announcement regarding HRA. House rent allowance of central employees can also be increased.

House Rent Allowance (HRA) will now increase

House rent allowance of central employees can also increase soon. This will happen because the government has already issued a notification for this. By the end of the financial year 2023-24, the HRA of the employees will also increase. However, this will happen only when the dearness allowance reaches 50%. Experts believe that the way dearness allowance has increased in the last two times. Looking at it, it seems that HRA revision will happen in March next year. Because, dearness allowance has reached 42%. If there is a jump of 4-4% for the next two times, then the dearness allowance will be 50%. When this happens, the revision of HRA will happen automatically.

Why is the HRA date confirmed?

Along with DA Hike, there is a jump in other allowances as well. The most important and important of these is the house rent allowance. In the year 2021, after July, the HRA was revised when the dearness allowance crossed 25%. In July 2021, the government had increased Dearness Allowance to 28 percent. The existing rates of HRA are 27%, 18% and 9%. The next revision is to be at 50%. Looking at the current situation, it is clear that there may be a 4% increase in dearness allowance in future as well. In this situation, HRA will be revised if DA is increased twice.

Employees will get tremendous benefits

According to DoPT, the revision in House Rent Allowance (HRA) for central employees (Kendriye Karamchari) is done on the basis of Dearness Allowance (DA). It is certain that by next year there will be a change in dearness allowance twice. Means after increasing in July 2023, DA will increase once more, which will be revised in March next year. In such a situation, there is every possibility of HRA crossing 50%. If this is to be believed, then the HRA will increase in the beginning of the year 2024 itself.

By how much will the HRA of central employees increase?

The current rate of HRA is 27%, 18% and 9% depending on the city category. This increase is applicable from 1 July 2021 along with DA. The government had said in a memorandum released in 2015 that HRA will be revised from time to time along with DA. The next revision in house rent allowance will be 3%. The maximum rate will increase from the existing 27% to 30%. But, this will happen when the Dearness Allowance (DA Hike) will be 50%. When DA crosses 50%, HRA will be 30%, 20% and 10%.

Who will get how much HRA?

The category of House Rent Allowance (HRA) is according to X, Y and Z class cities. The central employees who fall in the X category are getting 27% HRA, which will become 30% if DA is 50%. At the same time, for Y class people, it will increase from 18% to 20%. For Z class people it will be increased from 9% to 10%.

How much money will increase if HRA is increased?

Under the 7th Pay Commission, the maximum basic salary according to pay-grade at Level-1 of central employees is Rs 56,900 per month, then its HRA is calculated according to 27%. If you understand from simple calculation…

– HRA= Rs 56,900 x 27/100= Rs 15,363/month
– 30% HRA = Rs 56,900 x30/100= Rs 17,070/month
– Total difference in HRA: Rs 1707/month
– Annual HRA increase – Rs 20,484

How much will the salary of central employees increase?

Now if you understand according to the above calculation, then the maximum salary at level-1 is 56900. But, HRA will be 30% only if the total DA is 50%. In such a situation, there will be a big difference in the salary of central employees.

– Basic Salary: Rs 56,900
– Dearness Allowance (DA): 42%= Rs 23,898 per month
– HRA 27%: Rs 15,363 per month
– Total Salary: Rs 96,161/month

On revision of DA and HRA

– Basic Salary: Rs 56,900
– Dearness Allowance (DA): 50%= Rs 28,450 per month
– HRA 30%: Rs 17,070 per month
– Total Salary: Rs 1,02,420/month
– Net Salary: Rs 6,259/month

Note: Salary has not been calculated here according to other allowances and other salary structure. This is just for the purpose of explaining. The difference in salary can be huge if the rest of the allowance is added.

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