7th pay commission news today: As soon as the increase in dearness allowance is announced from January 2024, there will be a big jump in HRA and it will be revised. In fact, almost 50 percent of the dearness allowance of central employees has been confirmed.
7th pay commission news today: The year is starting with good news for central employees. Now he has got another big good news. After the increase in Dearness Allowance (DA) has been confirmed, the way has now been cleared for increase in House Rent Allowance i.e. HRA. As soon as the increase in dearness allowance is announced from January 2024, there will be a big jump in HRA and it will be revised. In fact, almost 50 percent of the dearness allowance of central employees has been confirmed. And if there is 50 percent dearness allowance, there is a fixed revision of 3 percent in HRA.
Dearness allowance reached 50 percent
The new AICPI index numbers for central employees have been encouraging. The index has reached 139.1 points. With this, the score of dearness allowance has increased to 49.68 percent. Meaning it is certain to get 50 percent. The index numbers for December 2023 are yet to come. Even if there is a decline in this, it is certain to get 50 percent dearness allowance. With the increase in Dearness Allowance (DA Hike), the way for increase in other allowances is also being cleared.
After DA, now it’s time for HRA Hike
Dearness allowance is currently 46 percent. But, the rule is that HRA will be revised once it reaches 50 percent. As it happened in July 2021. At that time, there was a revision of 3 percent in HRA when dearness allowance crossed 25 percent. At that time the upper limit was increased from 24 percent to 27 percent. But now once again it is almost certain that it will increase by 3 percent. The next revision of HRA may happen by March 2023.
HRA will increase by 3 percent in all three categories
According to DoPT, the revision of House Rent Allowance (HRA) of central employees is linked to dearness allowance. The categories of HRA are according to X, Y and Z class cities. The current rates in the category are 27 percent, 18 percent and 9 percent. This is applicable from 1 July 2021. According to a memorandum issued by the government in 2016, HRA along with DA will be revised from time to time. The next revision will happen when dearness allowance crosses 50 percent. In such a situation, it is fully expected in the year 2024. Because, the new dearness allowance will be applicable from January 2024. In which there may be a jump of 4 percent. In such a situation it will cross 50 percent.
HRA will increase by 3 percent
The next revision in House Rent Allowance will be 3%. The maximum rate of HRA will increase from the existing 27 percent to 30 percent. When DA reaches 50%, HRA will be reduced to 30%, 20% and 10%. Central employees who fall in X category are getting 27 percent HRA, which will increase to 30%. 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 is HRA decided?
Cities with population of more than 50 lakh come in X category. The central employees posted in these cities will get 27 percent HRA. Whereas in Y category cities it will be 18 percent and in Z category it will be 9 percent.
