The government has recently taken some important decisions for the central employees that will have a direct impact on the pockets of the central government employees. These decisions have been taken regarding Dearness Allowance (DA), House Rent Allowance (HRA), Pension, etc. of the employees.
Recently, the government has made some important changes in the rules related to pension after the death of an employee. This will benefit the family or dependents, after his death. In fact, the condition of ‘7 years of service for pension’ for the dependents of the employee, has been abolished. In simple words, the family or his dependents will be given 50% of the pension, if an employee dies before completing 7 years.
Under the 7th Pay Commission's House Building Advance (HBA), government employees who want to build their own house will get benefits. Under this scheme, the government is giving loans at an interest rate of 7.9% and employees can apply for them. The government has extended the deadline of the scheme, it can be availed till March 31, 2022.
Apart from this, the government has increased the DA and DR of employees and pensioners. DA and DR have been increased from 17 per cent to 28 per cent. With the increase in DA, HRA has also been revised. In fact, the department of expenditure had issued an order on July 7, 2017. It stated that, when the Dearness Allowance exceeds 25 per cent, the House Rent Allowance will be revised. The Dearness Allowance has been increased to 28 per cent with effect from July 1, due to which the HRA has also been revised.
