House rent allowance: Central employees have recently received the gift of increase in dearness allowance. The festive season is going to be good for them. Bonus, dearness allowance, arrears, everything is being received before Diwali. But, the coming year may be even more powerful.
7th pay commission HRA Hike: There is good news for central government employees. The increase in his salary has started. Central employees have recently received the gift of increase in dearness allowance. The festive season is going to be good for them. Bonus, dearness allowance, arrears, everything is being received before Diwali. But, the coming year may be even more powerful. In October 2023, the government has increased their dearness allowance (DA) to 46 percent. This is applicable from July 1. With the increase in Dearness Allowance (DA Hike), the way for increase in other allowances is also being cleared. Actually, after DA Hike, the next revision is to be of HRA (House Rent Allowance). But, when will this revision happen and how much will it be? Let us know…
After DA Hike, now the time for HRA revision
Dearness allowance has been increased by 4 percent. This has been increased to 46 percent. HRA was last revised by 3 percent in July 2021 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 going to increase by 3 percent. The question is that after the continuously increasing DA, when will be the next revision of HRA?
Government has already told when HRA will increase
According to the Department of Personnel and Training (DoPT), the revision of House Rent Allowance (HRA) for central employees is done on the basis of dearness allowance. The categories of House Rent Allowance (HRA) are according to X, Y and Z class cities. According to the category of cities, the current rate is 27 percent, 18 percent and 9 percent. This increase along with DA is applicable from July 1, 2021. But, according to a memorandum issued by the government in 2016, HRA will be revised from time to time along with DA hike. Now the next revision is to be held in the year 2024 and as far as it is expected, it will increase in the initial months itself.
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. But, this will happen when the dearness allowance crosses 50%. There is every possibility of this happening in January 2024. Let us tell you, once DA crosses 50%, HRA will be revised to 30%, 20% and 10%. Central employees who fall in X category are getting 27 percent HRA, which will become 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.
If DA became zero then HRA was reduced.
When the 7th Pay Commission was implemented, HRA was reduced from the range of 30, 20 and 10 percent to 24, 18 and 9 percent. Also its 3 categories were created 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 DA crosses the 25 percent mark, HRA itself will be revised to 27 percent and when dearness allowance crosses 50 percent, HRA will also be revised to 30 percent.
How was HRA divided?
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.
