7th Pay Commission: Central Govt Employees Likely to Get Hike in HRA by 3%, Check Latest Update

7th Pay Commission Latest News Today: HRA is given as per the category of the city in which the government employees work. The three categories of cities are X, Y, and Z.

7th Pay Commission Latest News Today: After the latest DA hike in March this year, the Central government employees may get hike in House Rent Allowance (HRA) soon, a report by Zee News stated. Last time the HRA was revised in July of 2021, when the DA was increased to 25%. HRA is expected to be revised this time as DA has been hiked to new levels.

The report stated that the HRA (House Rent Allowance) may be increased soon and the employees will experience a considerable raise in their salary if the HRA is hiked.

Notably, HRA is given as per the category of the city in which the government employees work. The three categories of cities are X, Y, and Z.

The Central government pays HRA at a rate of 27 percent of basic income to employees in the X category cities, and 18 percent to those in the Z category cities. Moreover, the employees in the Z class currently receive a 9% HRA on their basic wage. The HRA for employees in the Y group ranges from 18% to 20%, while HRA for employees in the Z class would rise from 9% to 10%.

How much HRA to increase this time?

As per the report, the HRA for government employees could increase by up to 3% soon. The Central government employees in X Class cities are likely to get a 3% increase in their HRA, while those in the Y Class cities may see a 2% increase in their allowance. And the employees in Z class cities may receive a 1% raise in their HRA, the report claimed.

If the HRA is hiked as per the city-wise category, the HRA for government employees will increase from 27% to 30% in the best-case scenario.

DA Hiked in March 2023

The Central government in March this year released an additional instalment of Dearness Allowance to Central Governments employees and Dearness Relief to Pensioners with effect from January 2023. The DA was hiked by 4% over the existing rate of 38% of the Basic Pay/Pension to 42 percent, to compensate against price rise and inflation.