7th Pay Commission: Central government employees can get double benefits in the new year. DA may increase by 4 to 5 percent in the new year. If this happens, DA will reach 50 percent. If DA reaches 50 percent then the government can increase HRA i.e. House Rent Allowance.
7th Pay Commission: Central government employees can get double benefits in the new year. DA may increase by 4 to 5 percent in the new year. If this happens, DA will reach 50 percent. If DA reaches 50 percent then the government can increase HRA i.e. House Rent Allowance. After the increase in HRA, the salary of government employees will increase. HRA is given to government employees on the basis of the city in which they work. House Rent Allowance is for salaried class employees who live in rented accommodation. Employees are divided into three categories based on their home needs and city.
Central government will increase DA in January
Central employees currently get DA at the rate of 46%. This has been implemented from July to December 2023. The next increase in DA will be in this month of January 2024, it is expected to be announced around Holi. The DA and DR rates of employees-pensioners are revised in January and July based on the half yearly data of AICPI index. A total of 8% DA has been increased in 2023 including January and July and now the next DA will be revised in the year 2024, which will depend on the AICPI index data from July to December 2023. As of now it is believed that this time it may increase to 50 percent. When DA reaches 50 percent, the government will also increase HRA.
HRA is divided into 3 categories
House rent allowance is divided into 3 categories. These categories are X, Y and Z.
(i) ‘X’ category includes areas with population of 50 lakh and more. Employees falling in this category are given 24 percent HRA as per the recommendation of the Central Pay Commission (CPC) under the 7th Pay Commission.
(ii) ‘Y’ is for areas with population between 5 lakh to 50 lakh. The employees living here are given HRA of 16 percent of the basic salary.
(iii) ‘Z’ category includes those employees where the population is less than 5 lakh. Here HRA is given at 8 percent. Now employees can get HRA increased to 27 percent for X category, 18 percent for Y category and 9 percent for Z category.
