There is some goods news in store for lakhs of central government employees and pensioners who have been eagerly waiting for the implementation of the promised Dearness Allowance (DA). The Centre has reportedly revised the House Rent Allowance (HRA) of central government employees.
Central government employees are expected to receive an increment in their HRA. This amount is likely to be deposited in their accounts starting from August, according to Zee News.
The HRA has been incremented due to dearness allowance exceeding 25 per cent, according to the office memorandum of the government. The Centre has allegedly raised HRA to 27 per cent of basic pay.
The government had increased the DA of central employees from 17 per cent to 28 per cent in early July. After this announcement, the Centre has also reportedly increased the HRA to 27 per cent.
The Department of Expenditure issued an order on July 7, 2017, regarding HRA. In this order, it stated that when the DA exceeds 25 per cent then the HRA will also be revised. From July onwards, the DA for central government employees has been hiked to 28 per cent which has triggered the increment in the House Rent Allowance. However, unlike DA, HRA varies from city to city.
Central employees receive HRA on the basis of their city, according to a Finance Ministry order. The cities based on which HRA is given are divided into three categories - X, Y and Z. After the expected revision, HRA for X category cities will be hiked to 27 per cent of basic pay. While HRA for Y category cities will be hiked to 18 per cent of basic pay and HRA for Z category cities will be hiked to 9 per cent of basic pay.
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