7th Pay Commission: Central Govt. Employees May Get 3% Hike In HRA

As per the leading business channel report, the total DA or dearness allowance of central government employees will go up by 34 percent soon. At present, after last year's increase, DA stands at 31 percent. So, reportedly after hiking DA last year, the government has taken a decision to raise their HRA or House Rent Allowance also.

In accordance with the rules, the HRA is increased only when the DA is more than 25%. Last year in July, the government hiked the DA to 28% and subsequently the HRA also was hiked. So, as and when the latest hike in DA is brought about, it shall also propel an increase in the HRA.

Considering the various employee categories, the HRA is pegged at 27%, 18% and 9%.

So, as per the latest reports, the HRA during the upcoming revision may see a hike by 3 percent. At present, the HRA is placed at 27 percent and will go up to 30 percent but it shall happen only if the DA goes beyond 50 percent. Furthermore, as soon as the DA moves past 50%, HRA will be 30%, 20% and 10% as per the DoPT memorandum.

GoodReturns.in