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

Allowances will increase by 3 percent

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 pertains only to dearness allowance. There was a revision in HRA when dearness allowance crossed 25 percent in the year 2021. As soon as DA crossed 25% in July 2021, there was a jump of 3% in HRA. The current rates of HRA are 27%, 18% and 9%. Now we will 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 of 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 exceed 30 percent

The next revision in House Rent Allowance will be 3%. The maximum current rate is 27 percent. After amendment, HRA will be 30 percent. But, this will happen when dearness allowance reaches 50 percent. According to the memorandum, as soon as DA reaches 50%, HRA will become 30%, 20% and 10%. The categories of House Rent Allowance (HRA) are as per X, Y and Z category cities. Central employees falling in X category are getting 27 percent HRA, which will become 30 percent if DA is 50 percent. At the same time, for people of Y category 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 more than 50 lakh come in X category. 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 cities it will be 9 percent.

How is HRA calculated?

According to the 7th Pay Matrix, if the maximum basic pay 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 easy calculations…

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

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