New Delhi: Under the 7th Pay Commission, the Central government is expected to increase the salaries of its employees by hiking their house rent allowance (HRA) and dearness allowance (DA) in the coming days around New Year.
Previously, the Central government increased the DA of its employees around Diwali 2021. At that time, central government employees had received a 3% DA hike. The authorities are now planning to increase the DA once.
According to media reports, the central government employees could expect another DA hike along with an increase in HRA as early as January 2022. However, the HRA hike could be limited to 11.56 lakh employees of the Railway Board.
If the finance ministry approves the proposal, then Railway Board government employees could start receiving increased HRA in January 2021.
The demand to increase the HRA was put forward by the Indian Railway Technical Supervisors Association and the National Federation of Railwaymen. If the government accepts the demand to increase the house rent allowance, employees could get a bumper increase in the salary.
The HRA of employees is decided by the city in which the worker is deployed. The cities are categorised under three categories - X category, Y category and Z category. Cities with a population of fewer than 50 lakhs come under the 'X' category.
A city whose population is more than 5 lakhs fall in the 'Y' category while those with less than 5 lakh population comes under the 'Z' category. The minimum HRA for all three categories - X, Y and Z - are expected to be Rs 5400, 3600 and Rs 1800, respective. Also Read: Google India's Year In Search 2021: IPL pips CoWIN portal to become top trending query
According to the Department of Expenditure, if the Dearness Allowance reaches 50 per cent, the maximum House Rent Allowance will increase to 30 per cent. Also Read: Shriram Properties IPO: Check latest subscription status, GMP
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