We have some good news for Central government employees! After increasing the Dearness Allowance (DA) to 31% from July 1, the Central government is now reflecting on an increase in the House Rent Allowance (HRA) of employees after receiving requests from lakhs of employees.
The decision to release DA arrears, which has been pending for 18 months, has not been announced yet but is expected to, soon. So, if DA arrears are released along with an increase in HRA then it will lead to an overall increase in the salary of employees.
As for an increase in HRA, the request for the same was done by the Indian Railway Technical Supervisors Association (IRTSA) and the National Federation of Railwaymen (NFIR).
Both the organisations are obliging an increase in HRA from January 1. For those who are not aware, HRA is a very significant part of the salary of government employees. As of now, the Central government provides HRA to the employees according to the city they are posted in.
The government has divided the cities into three categories - X, Y, and Z. If an increase in HRA is approved then X category cities can receive Rs 5400 more, Y can expect a hike of Rs 3600 per month, and Z can expect an increase of Rs 1800 per month
Cities that have a population of more than 50 lakh come under the X category - HRA worth 275 of basic salary.
Meanwhile, in categories Y and Z cities, employees receive HRA worth 18% and 9% of their basic salaries, respectively.
