7th Pay Commission: Central Government Employees Likely to Get 3% Rise in HRA, Check Latest Update

7th Pay Commission Latest News Today: HRA is given according to the category of the city in which the government employees work. The three categories of cities are X, Y, and Z.

7th Pay Commission Latest news today: After the last DA increase in March this year, central government employees may soon receive an increase in housing benefit (HRA), according to a Zee News report. The last time the HRA was revised in July 2021 when the DA was raised to 25%. HRA is expected to be revised this time as DA has been lifted to new levels.

The report states that the HRA (House Rent Allowance) may soon be increased and that the employees will experience a significant salary increase if the HRA is increased.

Specifically, HRA is given according to the category of the city in which the government employees work. The three categories of cities are X, Y, and Z.

The central government pays HRA at a rate of 27 percent of basic income to workers in Category X cities and 18 percent to those in Category Z cities. In addition, workers in Class Z currently receive 9% HRA on their base pay. The HRA for workers in the Y class ranges from 18% to 20%, while the HRA for workers in the Z class would increase from 9% to 10%.

How much HRA should be raised this time?

According to the report, HRA for government employees could soon increase by up to 3%. Central government employees in X-class cities are likely to receive a 3% increase in their HRA, while those in Y-class cities may see a 2% increase in their allowance. And the workers in Z-class cities can get a 1% increase in their HRA, the report claimed.

If the HRA is increased by city-by-city category, the HRA for government employees will increase from 27% to 30% at best.

DA Walked in March 2023

The Central Government released an additional portion of the Dearness Allowance to Central Government employees and Dearness Relief to pensioners in March this year with effect from January 2023. The DA was increased by 4% above the existing rate of 38% of the base salary / pension to 42 percent, to compensate for price increases and inflation.