7th Pay Commission: House Rent Allowance Likely To Increase by 3% For Govt Employees Soon, But Here’s The Catch

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7th Pay Commission Latest News Today: As per the updates from the Department of Personal and Training (DoPT), the revision in House Rent Allowance (HRA) for central government employees is done on the basis of dearness allowance.

7th Pay Commission Latest News Today: After recent hike in Dearness Allowance, here comes another piece of good news for the Central government employees. The House Rent Allowance (HRA) is likely to increase for them soon. As per a report by Zee Business, the Dearness Allowance (DA) is also likely to increase to 34 percent. And if the DA increases, the HRA will also increase. At present, the dearness allowance is being paid at the rate of 31%. Along with Dearness Allowance (DA Hike), other allowances have also increased in the recent past.

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As per the report, the HRA gets revised when the dearness allowance hike crosses 25%. The Central government had increased the Dearness Allowance to 28 percent in July 2021. And the HRA itself got revised as soon as the DA crossed 25 percent. 

Notably, the current rates of HRA are 27%, 18% and 9% as per the category of the city in which the employee resides. However, in October, the Central government had increased the dearness allowance to 31 percent. Now the question is when will the next revision of HRA happen?

As per the updates from the Department of Personal and Training (DoPT), the revision in House Rent Allowance (HRA) for central government employees is done on the basis of dearness allowance.

According to the category of the city of the employees, the HRA is being given at the rate of 27 percent, 18 percent and 9 percent. This hike along with DA has been applicable from July 1, 2021. But, the government had said in a memorandum issued in 2015 that the HRA would be revised from time to time with increase in DA.

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HRA likely to increase by 3%

As per the report, in the next revision of house rent allowance, the HRA will increase by 3%. The HRA will be increased to 30 percent from the existing 27 percent. However, this will happen only when dearness allowance hike will cross 50%. According to the memorandum from the DoPT, if the DA crosses 50%, the HRA will become 30%, 20% and 10%.