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HRA Calculation: The central government has increased the dearness allowance (DA) of lakhs of employees to 50%. The government had announced this in the first week of March. It has been implemented for central employees across the country from January 1, 2024. According to the rules, when DA reaches 50%, there is a change in House Rent Allowance (HRA) and some allowances. After the increase in DA, now central employees are waiting for changes in other allowances also.
No order came on change in HRA
The list of allowances has already been released by DoPT. It will be amended after the increase in DA this month. However, no order has come yet regarding changes in HRA. Now the question is whether the Central Government will give separate information about changes in HRA. Because DA has reached 50%? In such a situation, how much will be the increase in HRA? This is a big question. Let us know the answers to these questions-
Change in HRA decided after DA reaches 50%
Change in HRA is certain once the DA of central employees reaches 50 percent. But it is important for you to know that the change in DA affects the HRA of central employees according to the category of the city. This city is where the employee and his family live. To calculate HRA, cities are divided into X, Y and Z categories based on certain factors. As per the 7th Pay Commission, HRA for Category
HRA has been calculated as per the old rate
Later, when DA reached 25%, the HRA rates in cities X, Y and Z were changed to 27%, 18% and 9% of basic pay respectively. So, if the basic salary of an employee is Rs 35,000, he will get HRA according to urban category as follows-
1.) For X category cities, 27% of Rs 35,000 i.e. Rs 9,450
2.) For Y category cities, 18% of Rs 35,000 i.e. Rs 6,300
3.) For Z category cities, 9% of Rs 35,000 i.e. Rs 3,150
Thus, the HRA for an But now as per the recommendation of the Seventh Pay Commission, when the DA is 50%, the HRA rate for X, Y and Z category cities should be increased to 30%, 20% and 10% respectively.
Calculation of HRA as per new rate
Now according to the new rate, central employees will be given revised HRA on the basic salary of Rs 35,000. Let us see the calculation according to the new rate-
1.) For X category cities, 30% of Rs 35,000 i.e. Rs 10,500
2.) 20% of Rs 35,000 i.e. Rs 7,000 for Y category cities
3.) For Z category cities, 10% of Rs 35,000 i.e. Rs 3,500
How much difference will there be in salary?
In this way, HRA will increase to Rs 10,500 for X type city, Rs 7,000 for Y type city and Rs 3,500 for Z type city. That means people living in X type city will get Rs 1050 more every month. On annual basis it is Rs 12600. Similarly, for Y category people it has increased from Rs 6,300 to Rs 7,000. There was a difference of Rs 8400 annually. Similarly, for Z category people it increased from Rs 3,150 to Rs 3,500 and there is an annual increase of Rs 4200.
