DA Hike: After the cabinet meeting, the government had announced the DA of central employees before the Lok Sabha election notification came into force. The government had increased the DA of employees from 46 percent to 50 percent. It has come into effect from January 1, 2024.
HRA Calculation: The Central Government has increased the Dearness Allowance (DA) of lakhs of employees to 50%. The government had announced this in the first week of March. It has been implemented for central employees across the country from January 1, 2024. As per rules, when DA reaches 50%, there is change in House Rent Allowance (HRA) and some allowances also. After increasing DA, now central employees are waiting for changes in other allowances also.
No order came on change of HRA
The list of allowances has already been released by DoPT. It will be revised after the increase in DA this month. However, no order has yet come regarding changes in HRA. Now the question is whether the Central Government will give separate information about the changes in HRA. Because DA has reached 50%? In such a situation, how much will be the increase in HRA? This is a big question. Let us know the answers to these questions-
Change in HRA fixed when DA reaches 50%
Changes in HRA are certain once the DA of central employees reaches 50%. But it is important for you to know that the change in DA affects the HRA of central employees according to the category of the city. This city is the one where the employee and his family are living. For calculation of HRA, cities are divided into X, Y and Z categories on the basis of certain factors. As per the 7th Pay Commission, with effect from July 1, 2017, HRA has been made 24%, 16% and 8% of the basic salary for Category X, Y and Z cities respectively.
HRA calculated as per old rate
Later, when DA reached 25%, the HRA rates in cities X, Y and Z were changed to 27%, 18% and 9% of basic pay respectively. Therefore, if the basic pay of an employee is Rs 35,000, then the HRA he will get according to the city category will be as follows-
1.) For X category cities, 27% of Rs 35,000 i.e. Rs 9,450
2.) For Y category cities, 18% of Rs 35,000 i.e. Rs 6,300
3.) For Z category cities, 9% of Rs 35,000 i.e. Rs 3,150
In this way, HRA for X category city will be Rs 9,450, for Y category cities it will be Rs 6,300 and for Z type city it will be Rs 3,150. But now as per the recommendation of the Seventh Pay Commission, when DA is 50%, the HRA rate should be increased to 30%, 20% and 10% for X, Y and Z category cities respectively.
HRA calculation as per new rate
Now according to the new rate, the central employees will be given revised HRA on the basic pay of Rs 35,000. Let us see the calculation as per the new rate-
1.) For X category cities, 30% of Rs 35,000 i.e. Rs 10,500
2.) For Y category cities, 20% of Rs 35,000 i.e. Rs 7,000
3.) For Z category cities, 10% of Rs 35,000 i.e. Rs 3,500
How much difference will there be in salary?
In this way, HRA for X type city will increase to Rs 10,500, for Y type city it will increase to Rs 7,000 and for Z type city it will increase to Rs 3,500. That means people living in X type city will get Rs 1050 more per month. On annual basis it is Rs 12600. Similarly, for Y category people it increased from Rs 6,300 to Rs 7,000. There was a difference of Rs 8400 annually. Similarly, for Z category people, it increased from Rs 3,150 to Rs 3,500 and it increased by Rs 4200 annually.
