DA Hike: Good news for central employees! There will be 4% increase in dearness allowance, HRA will also increase, know details
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DA Hike: There is a good news for central employees. It is being told that employees can get dearness allowance of this four percent. This claim is being made on the basis of AICPI index released by the Labor Bureau. In November, while giving a big gift to the employees during Diwali, the Central Government had increased the dearness allowance by four percent from 42 percent to 46 percent. The increased dearness allowance was paid from July. In such a situation, if the government again gives four percent dearness allowance, then the House Rent Allowance (HRA) will also increase. According to government rules, if dearness allowance crosses the 50 percent mark then HRA is also increased.
What is the formula for HRA calculation?
There is a formula to calculate 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.
What is 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.
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