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HomePersonal Finance7th pay commission: HRA will increase along with DA, salary will increase...

7th pay commission: HRA will increase along with DA, salary will increase by Rs 20484, know update

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7th pay commission latest news today: Apart from dearness allowance, central employees get many types of allowances. One of these is House Rent Allowance (HRA). The central government has clarified the rules regarding this increase. This rule is related to dearness allowance only.


Good news is about to come. There will be good news for central government employees in the year 2024. Soon their dearness allowance (DA) will increase and cross 50 percent. At present dearness allowance is being given at the rate of 46%. But, with the increase in dearness allowance, other allowances of the employees will also increase by 3 percent. There is every possibility of a huge increase in his salary due to this.

There will be a 3 percent increase in allowances

Apart from dearness allowance, central employees get many types of allowances. One of these is House Rent Allowance (HRA). The central government has clarified the rules regarding this increase. This rule is related to dearness allowance only. In the year 2021, there was a revision in HRA when dearness allowance crossed 25%. In July 2021, as soon as DA crossed 25%, there was a jump of 3% in HRA. The current rates of HRA are 27%, 18% and 9%. Now we have to wait for the increase in dearness allowance. It is expected that dearness allowance will reach 50 percent in the new year. If this happens, there will be a revision of 3 percent in HRA once again.

Employees are getting the benefit of HRA

According to DoPT, the revision in House Rent Allowance (HRA) for central employees is done on the basis of dearness allowance. All employees are going to get the benefit of increased HRA. According to the category of the city, HRA is available at the rate of 27 percent, 18 percent and 9 percent. The government had issued a memorandum for this in the year 2015. In this HRA was linked to DA. Its three rates were fixed. 0, 25, 50 percent.

HRA will cross 30 percent

The next revision in House Rent Allowance will be 3%. The maximum current rate is 27 percent. After revision HRA will be 30%. But, this will happen when dearness allowance reaches 50%. According to the memorandum, as soon as DA reaches 50 percent, HRA will become 30%, 20% and 10%. The categories of House Rent Allowance (HRA) are according to X, Y and Z class cities. 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.

What are X,Y and Z categories in HRA?

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.

How is HRA calculated?

According to the 7th Pay Matrix, the maximum basic salary of central employees on grade pay at level-1 is Rs 56,900 per month, then their HRA is calculated at the rate of 27 percent. If you understand with simple calculation…

HRA = Rs 56,900 x 27/100 = Rs 15,363 per month
With 30% HRA = Rs 56,900 x 30/100 = Rs 17,070 per month
Total difference in HRA: Rs 1,707 per month
Increase in annual HRA – Rs 20,484

Pravesh Maurya
Pravesh Maurya
Pravesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ businessleaguein@gmail.com
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