7th Pay Commission: Good news for central govt employees! THIS allowance may increase your salary, here’s how | Personal Finance News

New Delhi: The government has approved various government employee allowances in the year 2021. After an 11 percent increase in the first DA, a 3% increase has been authorised. Employees have also received a raise in TA in addition to the Diwali bonus.

They also receive the arrears of dearness allowance by adding them together. Another allowance for central govt employees is currently being explored, with benefits starting in the next year, i.e. January. 

HRA will increase 

This increase will be made in the House Rent Allowance, or HRA, resulting in a significant raise in salary. In this context, the Finance Ministry has begun debating the demand for the implementation of House Rent Allowance (HRA) for more than 11.56 lakh employees. Let us inform you that this proposal has been submitted for approval to the Railway Board.

Employees will begin receiving HRA benefits in January 2021 if this plan is approved. As soon as these employees receive HRA, their salaries will skyrocket. The National Federation of Railwaymen (NFIR) and the Indian Railway Technical Supervisors Association (IRTSA) have requested the government to introduce HRA from January 1, 2021.

Employees started getting increased HRA

In fact, if the dearness allowance exceeds 25%, HRA is immediately updated. The modification in House Rent Allowance (HRA) for central employees has been made on the basis of dearness allowance, according to a DoPT announcement. Other central government employees are now being included in the increased HRA.

As a result, all employees have begun to reap the benefits of greater HRA. HRA has begun to get 27 percent, 18 percent, and 9 percent according to the city category. Along with DA, this hike went into effect on July 1, 2021.

City wise HRA is available

It’s worth noting that the House Rent Allowance (HRA) is separated into three categories: X, Y, and Z cities. That is, employees in the X category will now receive more than Rs 5400 in HRA every month. Following that, a person in the Y class will be paid Rs 3600 per month, while a person in the Z class will be paid Rs 1800 per month.  

Cities with populations of more exceeding 50 lakhs are classified as X. HRA will be paid to central staff in certain cities at a rate of 27%. It will be 18% in Y category cities and 9% in Z category cities.

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