7th Pay Commission: Dearness Allowance has been increased from 17 percent to 28 percent by the central government. Along with this, the House Rent Allowance has also been increased to 27 percent.
7th Pay Commission latest news: The Modi government has given a big gift to lakhs of employees waiting for the increase in dearness allowance from January 2020. The Dearness Allowance which was frozen for one and a half years has been increased. The dearness allowance, which was 17 per cent till now, has been increased by 11 per cent to 28 per cent directly. Apart from this, the government has also made a big announcement regarding HRA (House Rent Allowance).
After the announcement of the increase regarding Dearness Allowance, the central government has also increased the house rent allowance to 27 percent. In fact, the Department of Expenditure had issued an order on 7 July 2017, which said that when the Dearness Allowance crosses 25 per cent, the house rent allowance will be revised. Since July 1, the dearness allowance has increased to 28 percent, due to which the house rent allowance has also been revised.
HRA hiked to 27% for “X” class cities
The HRA for “X” class cities after revision will be 27% of the basic pay. Similarly, for “Y” class cities it will be 18 per cent of the basic pay and for “Z” class cities it will be 9 per cent of the basic pay. At present it is 24 per cent, 16 per cent and 8 per cent for all three classes. In this way, the house rent allowance has been increased by 1-3 percent for different categories.
How much is house rent allowance
According to the Finance Ministry, the city whose population is more than 50 lakhs comes under the “X” category. Cities with population more than 5 lakhs come under “Y” category and cities with population less than 5 lakhs come under “Z” category. The minimum HRA for all three categories will be Rs 5400, 3600 and Rs 1800. According to the Department of Expenditure, when the Dearness Allowance reaches 50 percent, the maximum House Rent Allowance will increase to 30 percent. This will be 3 per cent more than the current HRA.
How much Dearness Allowance has been increased?
Let us tell you that the 11 percent increase in Dearness Allowance has been increased by 3 percent between January and June 2020, 4 percent from July to December 2020 and 4 percent between January and June 2021. According to the recommendations of the 7th Pay Commission, the minimum salary of entry level government employees has been increased from Rs 7,000 to Rs 18,000. At the same time, with this the appointment of class-one officer will now be done at a minimum salary of Rs 56,100.
