7th Pay Commission Updates: Central employees have started getting increased HRA according to 28% DA. Now the government can take a decision on 31% HRA.
7th Pay Commission: Employees have started getting 28% Dearness Allowance. After this, now 31% DA has also been approved. After increasing the DA, now there is another good news for the employees. Now the government has approved one more allowance. House Rent Allowance has also increased by 28%.
Employees started getting increased HRA
Actually, HRA is automatically revised if dearness allowance is more than 25%. According to the notification of DoPT, the change in House Rent Allowance (HRA) for central employees has been done on the basis of dearness allowance. The government has now started including other central employees in the increased HRA.
All the employees have started getting the benefit of increased HRA. Therefore, according to the category of the city, 27 percent, 18 percent and 9 percent HRA has started getting. With DA on the basis of 28% DA hike, it has come into effect from 1st July 2021. But there is no increase in HRA on the basis of 31% DA yet.
City wise HRA is available
The category of House Rent Allowance (HRA) is according to the X, Y and Z class cities. Meaning the employees who fall in the X category will now get more than Rs 5400 per month HRA. After this, Rs 3600 per month for Y class and Rs 1800 per month for Z class.
Cities with a population of more than 50 lakhs come in the X category. Central employees in these cities will get 27% HRA. It will be 18 percent in Y category cities and 9 percent in Z category.
How HRA will be calculated
According to the 7th Pay Matrix, the maximum basic salary of central employees is Rs 56000 per month, then his HRA will have to be calculated at 27%. Which is like this.
HRA = Rs 56000 x 27/100 = Rs 15120 month
ago HRA = Rs 56000 x
24/100 = Rs 13440 month increase = 15120-13440 = Rs 1680 per month
How much HRA was available earlier
When the 7th Pay Commission came into force, the HRA was reduced from 30 per cent, 20 per cent and 10 per cent to 24, 18 and 9 per cent. Also it had made 3 categories X, Y and Z. During that time DA was reduced to zero. At that time itself, it was mentioned in the notification of DoPT that when the DA crosses the level of 25%, then the HRA will be automatically revised.