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7th Pay Commission Latest News: Good news is about to come for central employees. Many calculations have changed due to the increase in their Dearness Allowance (DA) in the month of March. The first dearness allowance will now start from zero and the second dearness allowance (DA increase) has been revised to 50 percent. But, now the question is what will happen to HRA when the DA calculation starts from zero? let us know.
Will dearness allowance be revised?
In March, dearness allowance of central employees was increased to 50 percent. After this there is discussion that in the next amendment dearness allowance will be reduced to zero. But, there is no official information about this yet. However, citing the rules, it is being said that this can happen. After July, dearness allowance will be reduced to zero. Central employees are also waiting for this. But let us tell you that if this happens then two things will be affected. Not only will the dearness allowance be zero, but the HRA received by the employees will also be revised once again. Because, the rule of amendment will apply here also.
What will be the change in HRA?
Actually, if we understand the DA hike calculation, the HRA rate for 0-24 percent is 24, 16, 8 percent. At the same time, as soon as dearness allowance reaches 25 percent, HRA gets revised to 27, 18, 9 percent. In case of reaching 50 percent dearness allowance, HRA once again becomes 30, 20, 10 percent. In such a situation, if dearness allowance is made zero, then the maximum limit of HRA will also be revised to 24 percent. Currently HRA is 30% in X cities category, 20% in Y category, 10% in Z cities category.
Why will there be a revision?
In fact, when the 7th Pay Commission was implemented in the year 2016, the government had changed the calculation of dearness allowance. After this, the rates of dearness allowance were also revised to zero. After this, HRA was also linked to dearness allowance. In this, a rule was made to revise twice. First when dearness allowance will be 25 percent and second when it will be 50 percent. Till reaching 25 percent, the minimum rates of HRA will be 24, 16, 8 percent.
When will dearness allowance become zero?
There is still doubt whether dearness allowance (DA will be zero) will be zero or not. Actually, no such announcement has been made officially. At the same time, no such circular has come from the Labor Bureau either. Therefore, it is difficult to say whether there will be a change in dearness allowance after 50 percent or not. At the same time, even if it is reduced to zero, its effect will be visible in the rates of dearness allowance applicable from July. However, its announcement may take time till September or October.