The Modi Government recently announced a hike in the dearness allowance (DA) of the Central Government Employees. It has been increased by 3% to 34%. Central Government Employees might get another surprise this month! According to a report by Zee News, the government may increase other allowances, including House Rent Allowance (HRA) soon.
The last hike in the HRA was observed in July, last year after the DA crossed the 25% mark. At that time, the government had increased the DA to 28 percent. With a hike in DA to new levels, HRA is also expected to revise.
HRA to be increased soon?
The House Rent Allowance, HRA, of government employees could increase soon. If the HRA increase takes effect soon, government employees will see a significant increase in their salaries.
HRA for government employees is determined by the category of the city in which they work. X, Y, and Z are the three categories. Employees in the X category currently receive HRA at a rate of 27% of their basic income, while those in the Z category cities receive it at a rate of 18%.
The HRA for Z class employees is presently 9% of their basic wage.
HRA is paid at a rate of 27% to central employees who fall into the X category. HRA for employees in the Y group will range from 18% to 20% and the HRA of the Z class will increase from 9 percent to 10 percent.
How much will HRA increase?
According to reports in the media, government employees' HRA could rise by up to 3% in the near future. Employees in X Class cities might see their HRA rise by 3%, while those in Y Class cities could see their allowance rise by 2%.
In addition, employees in Z class cities may see a 1% increase in their HRA. As a result, under the best-case scenario, government employees' HRA will increase from 27% to 30%.
