Central government employees may soon see their House Rent Allowance (HRA) increase following the most recent DA increase in March of this year, according to a report by Zee News.
The HRA was last updated in July 2021, when the DA was raised to 25%. Given that DA has been increased to new levels, HRA is expected to be changed this time.
According to the report, the HRA (House Rent Allowance) for government employees may be raised soon. If so, the employees' salaries will increase significantly.
Government employees' HRA is based on the type of city in which they are employed. There are three classifications: X, Y, and Z. Employees in the X category cities are currently paid HRA at a rate of 27% of basic income, and those in the Z category cities are paid it at a rate of 18%. Currently, the HRA for workers in the Z class is 9% of their base pay.
The HRA for government employees may shortly rise by up to 3%, according to the report. Employees of the Central Government in X Class Cities are likely to receive a 3% increase in their HRA, whilst those in Y Class Cities may only receive a 2% increase and employees in Z-class cities may get a 1% rise in their HRA.
7th Pay Commission: DA hike
Central employees have got a big gift as soon as the month of July begins. The dearness allowance has been announced. It is now official that government employees will begin receiving a 46 per cent dearness allowance (DA Hike) in July 2023. Dearness Allowance (DA) will be paid to employees at a rate of 46% rather than 42%.
