Currently, the government pays HRA at 27%, 18% and 9% rates depending on the category of the city where the worker is employed.
New Delhi: Under the 7th Pay Commission, Central government employees could soon receive another hike in their salary in the form of increased House Rent Allowance (HRA). The upcoming hike in the salary could come after the Central government recently increased the Dearness Allowance of the government employees.
According to Zee Business report, the DA of the Central government employees could increase to 34 per cent. If the government increases the DA, the employees could soon receive a hike in the HRA.
Currently, the Central government employees are paid dearness allowance at the rate of 31%. Besides the DA Hike, the government has also increased several other allowances in the recent past.
Currently, the government pays HRA at 27%, 18% and 9% rates depending on the category of the city where the worker is employed.
For the unversed, the government increases the HRA when the dearness allowance is increased to a certain limit. For instance, when the DA increased more than 25 per cent to 28 per cent, the government increased the HRA.
But since the government increased the dearness allowance to 31%, the subsequent HRA hike is yet to place. Central government employees are now expecting to hear an update from the government related to the same.
According to the Department of Personnel and Training (DoPT), the HRA of central government employees is revised based on the dearness allowance. According to the 2015 memorandum, HRA would be revised from time to time with an increase in DA.
HRA could increase by 3%
The house rent allowance of Central government employees is likely to increase by 3% in the upcoming hike. With the expected hike, the HRA will be paid to employees, currently receiving HRA at 27%, at 30 per cent. However, that will only happen if the DA crosses 50%.
