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7th Pay Commission: Now few days are left for the year 2024 to start. This new year is going to be very special for central employees. Not only the Dearness Allowance (DA) of the employees but also the House Rent Allowance i.e. HRA will increase this year. It means that there will be double good news in the new year.
How much will DA increase?
If media reports are to be believed, the dearness allowance may increase by 4 to 5 percent for the half year from January to June. If the allowance is increased by even 4 per cent, DA of central employees will increase to 50 per cent. Let us tell you that currently the allowance is 46 percent. The government had increased the allowance by 4 percent for the second half of the year 2023. Due to this, the allowance for the half year from July to December has increased to 46 percent. If the allowance increases by 5 percent, it will cross 50 i.e. 51 percent.
HRA increases as the allowance increases
The HRA will be revised as soon as the allowance of the central employees is 50 percent or more. As per the recommendation of the Seventh Pay Commission, the HRA will be revised when the allowance is 50 percent or more. For increasing HRA, cities are divided into three categories – X, Y and Z.
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How much will HRA increase?
Currently, employees residing in cities/towns of X,Y and Z get 27, 18 and 9 percent HRA respectively. But after the hike, if a central employee resides in X category cities/towns, his HRA will increase to 30 percent. Similarly, the HRA rate for Y category will be 20 percent and for Z category it will be 10 percent. This means that in the new year, there will be a huge increase in the salaries of central employees due to the increase in HRA along with DA.
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When will it be announced?
As per the pattern so far, the government announces an increase in the dearness allowance in the month of March. It is effective from January to June. At the same time, increase in July to December allowance is announced in the month of October. Thus central employees get increment allowance twice in a year on half yearly basis.