After boosting the dearness allowance for central government employees, the 7th Pay Commission is now increasing the house rent allowance. In fact, there is a provision to boost HRA in conjunction with a rise in DA.
Pay Commission No. 7 HRA Rise: Central government employees are in for some good news following the increase in dearness allowance. Following the rise in the Dearness Allowance (DA) from 31 to 34 percent, there are plans to enhance the House Rent Allowance. Other allowances increase in tandem with the increase of DA.
The HRA is being revised at the same time as the DA is being increased.
When the dearness allowance exceeded 25%, HRA was amended in July. In July 2021, the government increased the Dearness Allowance to 28 percent. HRA rates are currently 27 percent, 18 percent, and 9 percent. HRA is projected to rise now that the dearness allowance has been increased to 34%. But the question is when, after DA, will the HRA be revised again.
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Changes in HRA as a result of DA
The change in HRA for Central Government Employees is based on dearness allowance, according to the Department of Personnel and Training. From July 1, 2021, the previous 27 percent, 18 percent, and 9% rates will apply. The government stated in a memorandum issued in 2016 that while the HRA will be increased, the DA would be amended from time to time.
A three percent gain is possible.
The next increase in the house rent allowance might be 3%. The maximum HRA rate will be increased to 30% from the current rate of 27%. However, this will occur when the Dearness Allowance Revision reaches 50%. HRA will become 30%, 20%, and 10% if DA surpasses 50%, according to the memorandum.
