7th Pay Commission:  After DA Hike Centre Announces Bumper Bonanza For Govt Employees

By Lokmat English Desk | Published: July 18, 2021 02:20 PM2021-07-18T14:20:00+5:302021-07-18T14:20:00+5:30


Days after raising the dearness allowance (DA) for millions of government employees and pensioners to 28 per cent from the existing 17 per cent, with effect from July 1; the Central government has announced yet another bonanza for govt employees.

Modi-led government has announced a hike in House Rent Allowance (HRA) of Central government employees. Following this, they (employees) will receive an increased HRA as per the revised rates, from next month, i.e, August 2021.

With this, the salaries of government employees, as well as pensions, have been hiked significantly.

The Centre has asserted that the HRA has been hiked as the Dearness Allowance has crossed the mark of 25 per cent.

As per the government's order, the House Rent Allowance (HRA) of Central Government employees will be calculated in the following method. For those residing in ‘X’ category cities, the hike will be 27 per cent. Similarly, for residents of ‘Y’ and ‘Z’ categories, the hike will be 18 per cent and 9 per cent respectively.

The X category cities are those with a population of more than 50 lakh. The Y and Z category cities are those with a population of more than 5 lakh and less than five lakh, respectively.

The Centre announced last week that it has hiked the Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners from July 1, 2021, while increasing the rate of allowance to 28 per cent. When the DA crosses 50 per cent, the rates of HRA will also be revised to 30%, 20% and 10% respectively. The move will benefit as many as 48.34 lakh central employees and 65.26 lakh pensioners as with the DA, DR hike and HRA hike, employees will see a jump in their take-home salary and PF contribution as well.