The Narendra Modi-led central government recently increased the Dearness Allowance (DA) for all the central government employees by 3 percent, under the 7th pay commission. This means that the DA for all Centre employees stands at 34 percent now.
After the DA hike, it is likely that another increase in the salary of government employees will be approved by the Centre. It is speculated that along with the DA, there will be other hikes in the salary of central government employees, including House Rent Allowance (HRA).
An increase in the HRA can lead to a major boost in the salary of government employees, and it is expected that the final call regarding this will be taken soon by the Centre. It must be noted that the HRA was also hiked nearly a year ago, along with the DA.
Last year in July, the HRA of government employees was hiked when the DA had crossed the 25 percent mark. The DA was raised to 28 percent last year, after which the HRA was also hiked. Thus, it is expected that HRA will be hiked subsequently after the recent DA hike.
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Central government employees can expect a major boost in their salary if the HRA is increased along with the DA. The HRA of each employee is decided on the basis of the city they live in. If the HRA is hiked, then the percentage increase will remain similar for all.
The current HRA for employees in X category cities is paid at a rate of 27 percent of basic income, while for those who are in Z category cities, the HRA is fixed at 18 percent. It is expected that the HRA can be increased for all the categories uniformly.
Similar to the DA hike, it is likely that the HRA will also be increased by around 3 percent for all central government employees. In the best-case scenario, the HRA of government employees can be increased from 27 percent to 30 percent.
