Over 1 crore Central government employees and pensioners will receive the increased Dearness Allowance (DA) in the salary of September. The Central government employees and pensioners will also receive the three instalments of DA with their salary. But the good news is that the Centre may increase the DA of emoloyees once again.
It is to be noted that the Centre is yet to finalise the DA hike for the month of June. But, it is clear from the AICPI data from January to May 2021 that Centre would approve a DA hike of 3% very soon and according to experts an announcement in this regard will be made soon. If the Centre decides to increase DA by 3% then the total DA of Central government employee will reach 31% and there will a significant increase in salary too. Notably, the current DA of Central government employee is 28%. The Centre recently increased the DA of Central government employees by 11%.
Along with the DA hike, the Centre has also increased the house rent allowance (HRA) of the employees. According to the rules, HRA has been increased because dearness allowance has exceeded 25%. Therefore, the Centre has increased the HRA to 27%.
On July 7, 2017, an order was issued by the Department of Expenditure saying that when DA will exceed 25%, then HRA will also be revised. Since July 1, Dearness Allowance has increased to 28%, so it is necessary to revise HRA as well.
After the revision, the house rent allowance has been increased by 1-3 percent for different categories. For ‘X’ class cities, the HRA will be 27% of the basic pay. Similarly, it will be 18 per cent for ‘Y’ class cities and 9 per cent of the basic pay for ‘Z’ class cities. At present, it is 24 percent, 16 percent and 8 percent for all three classes.