7th Pay Commission: After the recent DA hike, the travel allowance and house rent allowance for central government employees are also expected to increase as it is linked to DA.
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7th Pay Commission: After the recent DA hike, another piece of good news is waiting for the Central government employees. As per a report by OneIndia.com, the house rent allowance (HRA) for the Central government employees is likely to be increased soon.
The recent hike in DA has brought significant financial benefits for the Central government employees just in time for the festival. Gratuity along with Diwali bonuses and DA arrears have been credited to their accounts. However, the good news doesn’t stop here as the employees are in for a substantial New Year’s gift in the form of a salary increase.
The salary hike for central government employees will again start in 2024. With the All India Consumer Price Index (AICPI) index for July, August, and September, the current DA stands at 46 percent. However, with the latest AICPI index data reaching 48.54 percent at 137.5 points, a further expected rise of 4-5 percent in DA is expected in the upcoming months.
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Travel Allowance Likely to Increase
After the recent DA hike, the travel allowance for central government employees is also expected to increase as it is linked to DA. In major TPTA cities, Grade 1 to 2 employees this time could receive Rs 1800 and Rs 1900, respectively, while Grade 3 to 8 employees could expect Rs 3600 + DA. However, in other cities, the rate stands at Rs 1800 + DA.
House Rent Allowance Also to Increase
Apart from these financial boosts, House Rent Allowance (HRA) revision is set for the next year and is expected to be around 3 percent. As per the previous trends, the HRA undergoes revisions if DA exceeds 50 percent. Currently allotted at 27, 24, and 18 percent across X, Y, Z category cities, the proposed hike in HRA could push these rates to 30, 27, and 21 percent, respectively, once the minimum allowance threshold of 50 percent is crossed.
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The changes will be effective once the HRA for central government employees is revised in March 2024 with an expected increase of 3 percent. In general, the HRA is revised when the DA crosses the 50 percent threshold. At present, the HRA is dispensed at rates of 27, 24, and 18 percent, categorised under X, Y, Z cities. If the DA breaches the 50 percent mark, HRA is expected to rise to 30, 27, and 21 percent, respectively.
