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The good news for central employees continues

The good news for central employees continues. There is good news now that the rock on inflation allowance has been lifted for the last one and a half years.

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7th Pay Commission Latest Update: A series of good news for central employees continues. The good news is that the rock on inflation allowances has been lifted for the last one and a half years. The government has now also revised the HRA (House Rent Allowance) of central employees. Then now the HRA in the salaries of the employees will also increase in August. The HRA has been increased as per the government order as the inflation allowance has gone up by more than 25 per cent

HRA This is what happened

The central government has increased the dearness allowance of its employees from 17 per cent to 28 per cent. Following the announcement, the central government has also increased the house rent allowance to 27 per cent. It is learned that the Department of Expenditure had issued an order on July 7, 2017 stating that House HRA would also be revised when the inflation allowance was more than 25 per cent. The dearness allowance has been increased to 28 per cent from July 1. HRA also needs to be revised.

HRA varies by city

Central employees will get HRA on the basis of their city as per the order of the Ministry of Finance. Cities are divided into three categories. After the X, Y and Z. revisions, the HRA basic pay for X category cities will be 27%. Similarly HRA basic pay for Y category cities will be 18% while for Z category cities this will be 9% of basic pay.

This will be HRA above 50% DA

If the population of a city exceeds 5 lakh, it is upgraded from Z category to Y category. That means there will be 18 per cent HRA instead of 9 per cent. A city with a population of over 6 million falls into the X category. The minimum house rent allowance for all the three categories will be Rs 5400, 3600 and 1800. According to the Department of Expenditure, when the inflation allowance goes above 50 per cent, the HRA will be reduced to 30 per cent, 20 per cent and 10 per cent for X, Y and Z cities.

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