The central government has given the gift of Holi to the central employees on 7 March 2024 (Thursday) in the evening. The government has increased the Dearness Allowance (DA) and Dearness Relief (DR) of central employees. Dearness allowance has been increased by 4 percent from 46 percent. This means that now their dearness allowance has become 50 percent.

Apart from this, the Central Government has increased the income tax exemption limit on gratuity from Rs 20 lakh to Rs 25 lakh. After these two announcements of the government, the house rent allowance ( HRA ) for employees has also increased in many cities of India. HRA has increased from 1 percent to 3 percent.

HRA is 30 percent increase in the basic salary of the employee. After the increase in HRA, the burden on the government has increased by approximately Rs 9,0000 crore. Let us know by how much HRA of employees has increased in different cities.

What is the new HRA limit?

Ever since the Central Government has increased the HRA, employees want to know how much their HRA has increased. The government has divided every city into X,Y,Z categories. City employees falling in X category get the highest HRA of 27 percent, which has now increased to 30 percent.

Similarly, Y category employees used to get 18 percent HRA, which has now increased to 20 percent. After this, the HRA of the employees falling in Z category has increased by 1 percent, that is, now their HRA has increased from 9 percent to 10 percent.

Cities falling in X category

Delhi, Ahmedabad, Bengaluru, Mumbai, Pune, Chennai and Kolkata fall in X category.

Cities falling in Y category

Cities like 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. , Aligarh, Agra, Lucknow, Kanpur, Allahabad, Gorakhpur, Firozabad, Jhansi, Varanasi, and Saharanpur fall in Y category.

Which cities come in Z category?

Z category includes those cities which do not come in X,Y. Employees of these cities will now get HRA of 10 percent.

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After the increase in HRA, the salary received by the government employees will increase. HRA is given on the basis of the city in which the government employees work. House Rent Allowance is for salary class employees who live in a rented house. Employees are divided into three categories depending on the need and city of the house.

HRA is divided into 3 categories

House Rent Allowance is divided into 3 categories. These categories are X, Y and Z.

(i) Areas with a population of 50 lakhs and above come in the ‘X’ category. Employees falling in this category are given HRA 24 percent as per the recommendation of the Central Pay Commission (CPC) under the 7th Pay Commission.

(ii) ‘Y’ stands for area with population between 5 lakh to 50 lakh. The employees living here are given HRA of 16% of the basic salary.

(iii) Those employees come under ‘Z’ category where the population is less than 5 lakhs. Here HRA is given at 8%.

HRA can be increased to this much

Now employees can get HRA increased to 27% for X category, 18% for Y category and 9% for Z category. On the other hand, when the dearness allowance reaches above 50 per cent, the HRA will increase to 30 per cent, 20 per cent and 10 per cent respectively.

When HRA can be revised

The Modi government may soon increase the HRA as well. For this notification has already been issued by the government. At present, the DA received by the employees is currently 42 per cent. Dearness allowance is to be increased once again in July. It is believed that now it can increase to 46 percent.

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