7th pay commission: There is big news for central employees. Soon they are going to get double good news. There will be a tremendous jump in his salary in the coming months. As the months pass, his salary will increase. This is not a new formula, but this dream is going to be fulfilled with Dearness Allowance (DA).
In fact, under the 7th Pay Commission, the dearness allowance (DA Hike) received by the central government employees is going to increase in July. Then after 6 months the Dearness Allowance (DA) will increase again. In such a situation, the entire calculation of his salary will change. Let’s understand how…
HRA will increase
Along with the dearness allowance, the house rent allowance of central employees will also increase. This will happen because, for this, the government has already said in a notification that the HRA of the employees is linked to the Dearness Allowance and as soon as the Dearness Allowance crosses 50 percent, the HRA will also be revised. In July 2023, dearness allowance is almost certain to increase at the rate of 4 percent.
HRA: When will be the next revision
At present, the dearness allowance (DA) of central employees is getting 42 per cent. After the release of the index numbers for January-June 2023, it will be decided that how much dearness allowance will increase from July. It is clear from the numbers that have come so far that dearness allowance can be increased at the rate of 4%. Along with DA Hike, there will be a jump in other allowances as well. The biggest of these is House Rent Allowance.
Last time also there was revision in HRA
In the year 2021, HRA was also revised after July with 25% cross of dearness allowance. In July 2021, the government had increased Dearness Allowance to 28 percent. The existing rates of HRA are 27%, 18% and 9%. Now the question is when will be the next revision of HRA after DA increase?
HRA: Now when will the house rent allowance increase?
According to a memorandum of DoPT, the revision in House Rent Allowance (HRA) for central employees (Kendriye Karamchari) is done on the basis of Dearness Allowance (DA). According to the category of the city, HRA is being given at the rate of 27 percent, 18 percent and 9 percent. This increase is applicable from 1 July 2021 along with DA. According to the memorandum issued in 2015, HRA will be revised from time to time along with DA. Now the next revision has to happen. But, this will happen when the dearness allowance crosses 50%.
HRA will increase by 3% more
The next revision in House Rent Allowance will be 3% under the 7th Pay Commission. HRA will increase from the existing maximum rate of 27 per cent to 30 per cent. But, this will happen when the Dearness Allowance (DA Hike) reaches 50%. When DA crosses 50%, HRA will be 30%, 20% and 10%. The category of House Rent Allowance (HRA) is according to X, Y and Z class cities. The central employees who fall in the X category are getting 27% HRA, which will be 30% if DA is 50%. At the same time, for Y class people, it will increase from 18 percent to 20 percent. For Z class people, it will increase from 9 percent to 10 percent.
How much money will increase on HRA increase?
According to the 7th Pay Commission matrix, the maximum basic salary of central employees is Rs 56,900 per month, then its HRA is calculated at 27 percent. If you understand from simple calculation…
HRA = Rs 56900 x 27/100 = Rs 15363/month
At 30% HRA = Rs 56,900 x 30/100 = Rs 17,070/month
Total difference in HRA: Rs 1707/month
Increase in annual HRA – Rs 20,484
