7th Pay Commission: Salary of Central government employees may increase again - Here's how

7th Pay Commission latest updates: The Central government employees are expected to get good news again as Prime Minister Narendra Modi-led government at the Centre is likely to give New Year gift to central government emoloyees. It may be recalled that earlier on Diwali, the Modi government had increased the Dearness Allowance (DA) of the central  employees by 3 percent. 

According to reports, the Centre is likely to increase the House Rent Allowance (HRA) of Central government employees in early January 2022.

The Finance Ministry has started discussions to implement the House Rent Allowance (HRA) of more than 11.56 lakh employees. It is learnt that a proposal has also been sent to the Railway Board for approval of this proposal. If this proposal is approved, then the employees will get HRA in January 2021. The Indian Railway Technical Supervisors Association and the National Federation of Railwaymen are demanding to implement HRA from January 1, 2021. There will be a bumper increase in the salary of Central government employees after increase in the HRA.

It is to be noted that the cities whose population is more than 50 lakhs come under the 'X' category. At the same time, the cities with population of more than 5 lakhs fall in the 'Y' category and cities with a population of less than 5 lakhs come under the 'Z' category. The minimum HRA for all three categories will be Rs 5400, Rs 3600 and Rs 1800. According to the Department of Expenditure, when the DA reaches 50 percent, the maximum House Rent Allowance will have to increase to 30 percent.