New Delhi: The Modi government has announced a raise in the Central Government Employees’ Dearness Allowance (DA). It has been increased by 3%, bringing it to 34%. Employees of the Central Government may be in for another surprise this month! The government may boost other allowances, such as House Rent Allowance (HRA), in the near future.
The last time the HRA was raised was in July of last year, when the DA passed the 25% barrier. The government had hiked the DA to 28 percent at the time. HRA is expected to be revised as DA is raised to new levels.
Government employees’ HRA (House Rent Allowance) may be increased soon. Government employees will experience a considerable raise in their salary if the HRA increase goes into effect soon.
The category of the city in which government employees work determines their HRA. The three categories are X, Y, and Z. HRA is now paid at a rate of 27 percent of basic income to employees in the X category cities, and 18 percent to those in the Z category cities.
Employees in the Z class currently receive a 9% HRA on their basic wage.
HRA is paid to central employees who fit into the X category at a rate of 27%. HRA for employees in the Y group will range from 18% to 20%, while HRA for employees in the Z class would rise from 9% to 10%.
How much will HRA increase?
HRA for government employees could increase by up to 3% in the foreseeable future. Employees in X Class cities may get a 3% increase in their HRA, while those in Y Class cities may see a 2% increase in their allowance.
Additionally, employees in Z class cities may receive a 1% raise in their HRA. As a result, the HRA for government employees will rise from 27% to 30% in the best-case scenario.
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