We have a piece of good news for Central government employees! After the government increased the Dearness Allowance (DA) to 34 percent now media reports claim that employees’ House Rent Allowance (HRA) is also all set to increase.
If the HRA of the employees is increased then there will also be a bumper increase in the salary of the workers. According to reports, the next revision in HRA will be 3 percent. The maximum that the HRA can be increased is from 27 percent to 30 percent. The category of House Rent Allowance (HRA) is according to the X, Y, and Z class cities.
Central employees who fall in the X category are getting 27 percent HRA. HRA of Y category employees will be from 18 percent to 20 percent. At the same time, the HRA of the Z class will increase from 9 percent to 10 percent.
Revision in HRA happens as DA increases
HRA was revised in July last year with DA crossing 25%. The government had increased the Dearness Allowance to 28 percent in July 2021. HRA itself got revised as soon as DA crossed 25 percent. However, now the DA has increased to 34 percent. Now the question is that after the ever-increasing DA, when will the next revision of HRA happen?
Calculation of HRA
According to the 7th Pay Matrix, the maximum basic salary of central employees is Rs 56,900 per month, then their HRA will be calculated as Rs 20,484 at the rate of 27 percent.
HRA = Rs 56,900 × 27/100 = Rs 15,363
Monthly HRA = Rs 56,900 × 30/100 = Rs 17,070
Total difference in month HRA: Rs 1707
Increase in monthly HRA – Rs 20,484
