7th Pay Commission: The HRA hike for the Central government employees depends upon the type of city in which they live in.
7th Pay Commission: After the dearness allowance was hiked to 50%, now the HRA will be increased for the Central government employees anytime soon. Last month, the dearness allowance was increased to 50% for the Central government employees and it was effective retrospectively from January 1, 2024. Now, as per the 7th Pay Commission guidelines, when DA touches 50%, several allowances such as House Rent Allowance (HRA) are revised for the government employees.
Now as the new salary is being credited to the account, the central government employees are waiting for the other allowances to be modified and be credited to their accounts.
Last month, the Department of Personnel and Training released a list of allowances that have been revised after the hike in DA this month. However, the government employees till now did not get any update regarding the change in HRA.
Now the Central government employees are asking whether the Centre will release a separate order mentioning the hike in HRA as DA reaches 50% now.
How Much Will HRA Increase?
Speaking to Economic Times, Sanjeev Kumar, Partner, Luthra and Luthra Law Offices India, said that the government employees need to understand the HRA calculation with its components which is paid to them along with their salary. He further added that the HRA depends upon the type of city in which the employee resides.”
The Central government employees must note that the HRA hike depends on the category of cities the employees are living in. General the cities are categorised as type X, Y and Z based on Census, among other factors. As per the recommendations of the 7th Pay Commission, HRA has been rationalised to 24%, 16% and 8% of the basic pay for class X, Y, and Z cities, respectively, from July 1, 2017.
Check HRA Calculation As Per City Category
Later, when DA touched 25%, rates of HRA were revised to 27%, 18% and 9% of basic pay in X, Y and Z cities.
The Central government employee with a base pay of Rs 35,000 will get the revised HRA as follows:
- a) For type X city: 27% of Rs 35,000 = Rs 9,450
- b) For type Y city: 18% of Rs 35,000 = Rs 6,300
- c) For type Z city: 9% of Rs 35,000 = Rs 3,150
As per the 7th Pay Commission recommendations, the rates of HRA are revised to 30%, 20%, and 10% of basic pay in X, Y, and Z cities, respectively, when DA reaches 50%.
The Central government employee with a base pay of Rs 35,000 will get the revised HRA as follows:
- a) For type X city: 30% of Rs 35,000 = Rs 10,500
- b) For type Y city: 20% of Rs 35,000 = Rs 7,000