- By Aditya Pratap Singh
- Thu, 04 Jan 2024 03:53 PM (IST)
- Source:JND
7th Pay Commission: Central government employees may get double benefits in the new year. The union government can increase the dearness allowance (DA) by 4 to 5per cent this year and If the same happens, DA will reach 50per cent. In such a scenario, the government may have to hike the HRA i.e. House Rent Allowance. If the f union government hike the DA and HR then employees would get a decent cup in their salary.
Employees who live in a rented house get the benefit of HRA. The amount of HRA varies from city to city. An employee who lives in tier-1 cities would get more HRA than an employee who lives in tier-II or tier-III Cities.
Employees working under the Central government currently get DA at the rate of 46%. The same rate has been followed from July to December 2023. The next hike in DA will be implemented from January 2024 and it is expected to be announced before Holi. The DA rates of employees are revised in January and July based on the half-yearly data of the AICPI index. Last year a total of 8% Dwasen increased. The DA increase percentage will depend on the AICPI index data from July to December 2023. Meanwhile, employees are expecting a 4% or more hike in Dearness allowance.
House Rent Allowance Category
As we discussed above hoallowancesallowance is such object where to city, the employee is living. Based on it, HRA is divided into 3 categories.e.ories i.e. X, Y and Z.
The 'X' category includes areas with a population of 50 lakh and more. Employees falling in this category are given 24per cent HRA as per the recommendation of the Central Pay Commission (CPC) under the 7th Pay Commission. The areas that have a population between 5 lakh to 50 lakh fall under the 'Y' category. The employees living here are eligible to get 16per cent HRA of the basic salary. The 'Z' category includes those employees whose population is less than 5 lakh. per cent8 per cent of livings live here.