7th Pay Commission: Great news! Government approved one more allowance, get double bonus, know details here
7th Pay Commission: When DA exceeds 25%, HRA gets automatically revised. The government has reduced dearness allowance to 28%, so employees will now get the benefit of HRA as well.
New Delhi: 7th Pay Commission: From July 1, 2021, 28% dearness allowance has started to the employees . After increasing the DA, now there is another good news for the employees. Now the government has approved one more allowance. House Rent Allowance has also increased now.
Employees started getting increased HRA
Actually, HRA is automatically revised if the dearness allowance is more than 25%. According to the notification of DoPT, the change in House Rent Allowance (HRA) for central employees has been done on the basis of dearness allowance. The government has now started including other central employees in the increased HRA.
All the employees have started getting the benefit of increased HRA. Therefore, according to the category of the city, 27 percent, 18 percent and 9 percent HRA has started getting. This increase has also come into effect from 1 July 2021 along with DA.
City wise HRA is available
The category of House Rent Allowance (HRA) is according to the X, Y and Z class cities. Meaning the employees who fall in the X category will now get HRA more than Rs 5400 per month. After this, Rs 3600 per month for Y class and Rs 1800 per month for Z class.
Cities with a population of more than 50 lakhs come in the X category. Central employees in these cities will get 27% HRA. It will be 18 percent in Y category cities and 9 percent in Z category.
How HRA will be calculated
According to the 7th Pay Matrix, the maximum basic salary of central employees is Rs 56000 per month, then his HRA will have to be calculated at 27%. Which is like this.
HRA = Rs 56000 x 27/100 = Rs 15120 Month
ago HRA = Rs 56000 x
24/100 = Rs 13440 per month increase = 15120-13440 = Rs 1680 per month
How much HRA was available earlier
When the 7th Pay Commission came into force, the HRA was reduced from 30 per cent, 20 per cent and 10 per cent to 24, 18 and 9 per cent. Also it had made 3 categories X, Y and Z. During that time DA was reduced to zero. At that time itself, it was mentioned in the notification of DoPT that when the DA crosses the level of 25%, then the HRA will be automatically revised.
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