7th Pay Commission: Great news for central employees! HRA is going to increase, know when will you get the benefit
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7th Pay Commission: Dearness Allowance (DA) of employees and pensioners was increased by the Central Government during Navratri. The government had announced to increase dearness allowance by 4 percent for the employees. After which, DA increased from 42 percent to 46 percent. Besides, it was also announced that he would receive arrears of dearness allowance from July. After this, now the wait is to increase the House Rent Allowance (HRA) of the employees. However, for this the employees will have to wait till the next dearness allowance increase. The reason for this is the formula for calculating HRA. At present, house rent is given to central employees according to the category of the city. The government has divided cities/towns into X, Y & Z categories. Where the government gives 27 percent house rent allowance in X category, 18 percent in Y category and 9 percent in Z category. This house rent allowance is given according to the basic salary of the employee. However, now employee unions estimate that the government may increase the minimum rent allowance to ten percent in the next house rent allowance revision.
When will I get increased house rent allowance?
As per the recommendations of the Seventh Pay Commission of the Central Government, guidelines for House Rent Allowance have already been decided. According to this, when the dearness allowance of the employees reaches 50 percent or more, the house rent allowance will be revised. At present 46 percent dearness allowance is being given to central employees. In such a situation, if next time the government increases dearness allowance by 4 percent again, then DA will be 50 percent. In such a situation, house rent allowance will also increase along with DA. It is estimated that from January, employees who live in X category cities/towns will get 30 percent house rent allowance. Whereas, 20 percent house rent allowance can be given to employees living in Y category cities. At the same time, employees living in Z category can be given house rent allowance at the rate of 18 percent. It is estimated that employees may get increased house rent allowance from January 2024.
house rent allowance
House Rent Allowance is a financial benefit provided to government employees to help them pay the rent for their residence. It is also called rent allowance or house rent allowance. This is especially provided to government employees or other level employees so that they can get some assistance in the rent of their residence. The amount of this allowance and the reasons for which it is granted may vary across locations and organizations. In most cases, this is a fixed limit amount and it is determined according to the salary of the person. House Rent Allowance is commonly used to support people in large cities with rising housing rents and rising cost of living.
How is House Rent Allowance calculated?
House rent allowance can be calculated in different ways in different organizations and government departments. The first step in calculating house rent allowance is to evaluate the tenant’s salary. This may include the person’s monthly or annual salary. The limit of allowance is determined by the government. Determining this limit may depend on several factors, such as the location of the city, the condition of the person, and other factors. In calculating any allowance, the allowance is calculated keeping in mind the financial condition of the person, debt, and other financial elements.
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