look news india
New Delhi: There is good news for central government employees. His salary has started increasing.
Recently, the new dearness allowance of central employees has been approved. However, there is still time for its announcement. A decision on this is expected by March. But, the matter will not stop only at dearness allowance.
After DA Hike, now another good news is waiting for them. Actually, the house rent allowance of the employees is also going to increase. 50 percent dearness allowance has been ensured. Now after this comes the amendment in HRA. There is to be an increase of 3 percent in this.
HRA will increase after DA increase-
4 percent dearness allowance has been ensured. The Union Cabinet will also approve it in March. In such a situation, central employees will get 50 percent dearness allowance. It will be implemented from January 1, 2024. Let us tell you, when dearness allowance crossed 25 percent in July 2021, there was a revision of 3 percent in HRA.
At that time the upper limit of HRA was increased from 24 percent to 27 percent. Now there will be a revision in HRA when dearness allowance is 50 percent. There will be an increase of 3 percent once again.
HRA of metro cities i.e. cities falling in X category will increase to 30 percent. Employees working in these cities will be given house rent allowance at the rate of 30 percent.
Government told when HRA will increase-
According to the Department of Personnel and Training (DoPT), the revision of House Rent Allowance (HRA) for central employees is done on the basis of dearness allowance.
The categories of House Rent Allowance (HRA) are as per X, Y and Z category cities. The current rate according to the category of cities is 27 percent, 18 percent and 9 percent. This increase along with DA is effective from July 1, 2021.
But, the government had issued a memorandum in the year 2016. In which there were instructions to amend DA Hike as well as HRA from time to time. HRA was amended when dearness allowance increased to 25 percent in 2021. Now after 50 percent dearness allowance, there will be next amendment in HRA.
What is the formula for HRA calculation?
There is a formula to calculate HRA. In the present situation, central employees are given house rent according to the category of the city. The government has divided cities/towns into X, Y and Z categories.
While the government gives 27 percent house rent allowance in X category, 18 percent in Y category and 9 percent in Z category. This house rent allowance is decided according to the basic salary of the employee.
How much will be the HRA for which city?
1. In X category- Delhi, Ahmedabad, Bengaluru, Mumbai, Pune, Chennai and Kolkata have been kept in X category. The employees working here get HRA of 27 percent of the basic salary.
2. In Y category – Patna, Lucknow, Visakhapatnam, Guntur, Vijayawada, Guwahati, Chandigarh, Raipur, Rajkot, Jamnagar, Vadodara, Surat, Faridabad, Ghaziabad, Gurgaon, Noida, Ranchi, Jammu, Srinagar, Gwalior, Indore, Bhopal, Jabalpur, Ujjain, Kolhapur, Aurangabad, Nagpur, Sangli, Solapur, Nashik, Nanded, Bhiwadi, Amravati, Cuttack, Bhubaneswar, Rourkela, Amritsar, Jalandhar, Ludhiana, Bikaner, Jaipur, Jodhpur, Kota, Ajmer, Moradabad, Meerut, Bareilly, Aligarh, Cities like Agra, Lucknow, Kanpur, Allahabad, Gorakhpur, Firozabad, Jhansi, Varanasi, Saharanpur come. The employees living here get HRA of 18 percent of the basic salary.
3. In Z category- Apart from the cities of X and Y category, all other cities have been kept in Z category. Employees working in these cities get HRA of 9 percent of the basic salary.
How will the HRA of employees increase?
The next revision in House Rent Allowance will be in March 2024. As soon as dearness allowance reaches 50 per cent, the maximum rate of HRA will increase from the current 27 per cent to 30 per cent. This will be for employees falling in X category.
In the second category i.e. Y, the revision will be 2 percent. Its current level is 18%, it will be increased to 20%. After this, Z category employees will get 10 percent HRA increased by 1 percent.
If DA becomes zero then HRA gets reduced.
When the 7th Pay Commission came into effect, HRA was reduced from 30, 20 and 10 percent to 24, 18 and 9 percent. Also its 3 categories X, Y and Z were created. During that time DA was reduced to zero.
At that time, it was said in the notification of DoPT that when DA reaches the figure of 25 percent, HRA will be automatically revised and there will be an increase of 3, 2, 1 percent according to the category. Now when dearness allowance reaches 50 percent, HRA will again increase in the same manner.