7th pay commission: Central govt employees double bonanza house rent allowance revised

By Lokmat English Desk | Published: July 28, 2021 01:07 PM2021-07-28T13:07:16+5:302021-07-28T13:07:16+5:30


After a long wait, now central government employees will get 28% Dearness Allowance (DA) of basic salary from July 1.

The Centre has approved this proposal. Along with this, the house rent allowance (HRA) of the employees has also been increased, which means the August salary of the central government employees will now come with a double bonanza.

Along with the increase in dearness allowance, the government has also increased the house rent allowance of central government employees.

According to the rules, HRA has been increased because dearness allowance has exceeded 25%. Therefore, the Centre has increased the house rent allowance to 27%.

The Department of Expenditure had issued an order on 7 July 2017, in which it said that when dearness allowance 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.